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Senate committee hears bill to raise penalties for employer misclassification; members seek clarity on $10,000 cap

2754644 · March 24, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Sen. Umu Verbeten told the Senate Jobs Committee on March 24 that Senate File 2361 would require employers who misclassify employees to repay 100% of owed unemployment insurance and paid family medical leave contributions and would allow agencies to impose additional penalties.

Sen. Umu Verbeten, author of Senate File 2361, told the Senate Jobs Committee on March 24 that the bill would require employers who misclassify employees to repay 100% of what they owe for unemployment insurance and paid family medical leave instead of the current 50% repayment.

The bill "really is closing a loophole that allows employers who have misclassified their employees to only pay half of what they owe for unemployment insurance and for paid family medical leave," Verbeten told the committee.

The measure also would give state agencies discretion to impose additional penalties for willful misclassification. Richard Kajewski, director of government affairs for the North Central States Regional Council, testified in…

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