Labor and Industry highlights enforcement, workers’ comp rehabilitation, apprenticeship and new nursing‑home rules

ST. PAUL — Minnesota Department of Labor and Industry Commissioner Nicole Lisonbee told the House Workforce Committee on Jan. 8 that the agency’s mission is to “ensure that Minnesota's work and living environments are equitable, healthy and safe,” and reviewed the department’s operating divisions and recent enforcement activity.

Lisonbee opened with a budget and funding overview, noting that roughly half of the department’s revenue comes from the Workers’ Compensation Fund and smaller shares from construction‑codes fees, federal funds and the general fund. She said penalty funds collected by different divisions are distributed to different state accounts depending on program rules.

On workers’ compensation, Lisonbee highlighted vocational rehabilitation and the department’s special compensation fund, which covers claims when employers lack insurance. She described a case where Vocational Rehabilitation Unit staff helped an injured worker with concussion‑related driving limits reenter the workforce as a paraprofessional, and another where the special compensation fund paid benefits when an uninsured employer failed to carry coverage.

Lisonbee reported that targeted compliance training for payers identified with many prohibited‑practice penalties sharply reduced subsequent penalties, and she pointed the committee to the Workers’ Compensation Advisory Council, a mixed labor‑and‑business body that reviews changes to the work‑comp chapter.

The department also reviewed its Construction Codes and Licensing Division, which licenses electricians, plumbers, roofers and other trades, and noted a change in exam proctoring that expanded in‑state testing availability beyond St. Paul to communities such as Duluth, Mankato and Rochester. “Exams are now offered and administered regularly…in numerous municipalities,” she said, citing 2024 licensing volumes (about 9,000 exams proctored, roughly 3,500 outside St. Paul).

Lisonbee summarized Labor Standards enforcement in 2024: the division returned more than $2.25 million in unpaid wages to workers, assessed more than $2.1 million in civil penalties, and handled over 23,000 inquiries. She cited several enforcement actions: a consent order with Bushel Boy for unpaid overtime wages, an investigation into Sanford related to pregnancy‑related hour cuts and termination, a consent order with Grape Tree Medical for fees charged to employees (about $336,000 in back wages and liquidated damages for more than 900 employees), and a Smithfield Packaged Meats Corporation case that resulted in a $2 million penalty for employing minors in hazardous shifts.

On the Nursing Home Workforce Standards Board, Lisonbee said the board adopted two standards: a wage (minimum compensation) standard that is not in effect because it requires state funding and federal approval, and a posting/holiday standard that went into effect Jan. 1. The holiday standard requires time‑and‑a‑half for work on state‑recognized holidays; Lisonbee said the minimum‑compensation rule is not enforced without required funding and approvals.

Minnesota OSHA reported both consultation and compliance activities: OSHA consultation provides free on‑site assistance and MNSTAR recognition for employers that go beyond baseline safety; OSHA compliance conducted inspections, identified workplace hazards and delivered outreach last year. Lisonbee said Minnesota OSHA visited more than 1,000 establishments and identified nearly 3,000 hazards in 2024, in addition to thousands of outreach contacts.

Apprenticeship Minnesota reported roughly 11,000 active apprentices and about 2,000 apprenticeship completions in 2024 across 214 registered programs. Lisonbee emphasized apprenticeships expanding beyond trades into sectors such as early childhood education and teacher apprenticeship programs intended to address teacher shortages.

Committee members asked about enforcement capacity and trends in work‑comp claims. Lisonbee said enforcement capacity has improved in recent years through added investigators and inspectors and said the state is seeing fewer work‑comp claims — a trend she attributed in part to safety investments and enhanced OSHA activity.

Representative Zalesnikar asked whether the Jan. 1 holiday rule for nursing homes carried state funding to offset costs; Lisonbee said the rule’s holiday pay provision did not require a legislative funding appropriation and therefore went into effect, while the minimum compensation rule remains pending funding and federal approval.

The committee adjourned with a plan to continue oversight and follow up on fiscal analyses in an upcoming session with the Legislative Budget Office.