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Bill to add employer reporting of no-shows draws debate over fraud portal and verification

2381977 · February 24, 2025
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Summary

Senate File 15-83 would require DEED to provide employer-facing reporting on applicants who fail to appear for interviews or refuse offers; DEED staff said an online fraud-reporting portal already exists and cautioned that submitted incidents require fact-specific investigation before any fraud determination.

Senate File 15-83, introduced by Senator Green and heard Feb. 24, would direct DEED to modify or use its existing online systems so employers can report instances where job candidates accept interviews or offers and then fail to show or otherwise refuse work. Sponsor Senator Green said the measure is aimed at reducing the administrative and financial burden placed on small employers when candidates repeatedly fail to appear.

Testimony: Brad Fitzgerald, chief financial officer of Occupational Development Center, testified that his nonprofit employer experienced 17 “no call, no show” interviews between Dec. 1 and Jan. 20 that cost nearly 80 staff hours; four employees accepted offers and then failed to appear within days, accounting for an estimated 52 hours and $3,132 in direct, non‑labor costs by the organization. Fitzgerald and sponsors argued a consolidated, employer-accessible reporting mechanism would let DEED identify patterns and allow employers to avoid repeated costs.

DEED’s government relations director, Devin Bowdre, told the committee DEED already provides a fraud-reporting portal and an employer account mechanism where employers can raise issues with specific claimants. Bowdre emphasized that fraud determinations are fact-specific and managed under Minnesota Statute 268.182; DEED staff said they investigate reports and that not every no‑show or missed contact is fraud under statute.

Committee reaction: Committee members broadly agreed the issue of repeated no-shows and job refusals is a problem for employers. Several raised concerns that labeling such reports as “fraud” could be inappropriate when facts are incomplete and that a public, unverified reporting system could harm jobseekers’ prospects if inaccurate reports are visible to future employers. DEED staff warned the bill’s language could oblige the agency to publish lists of unverified employer claims, creating potential due-process and administrative burdens.

Sponsor response and disposition: Senator Green said the bill’s purpose is to create a database to flag repeated problematic behavior so employers can avoid wasting resources; he said he would accept an oral amendment to remove the word “fraud” if that would advance the proposal. The bill was laid on the table for possible inclusion; DEED and committee members indicated the measure requires additional drafting to address verification, confidentiality and process concerns before it could move forward.

No committee vote was recorded at the hearing.