Compliance & Penalties

Partnering with Employers to Guarantee the Support of our Nation's Children

Minnesota Statute 142A.29 and the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, 42 U.S.C. 653A, requires all employers to report newly hired and re-hired employees to a state directory within 20 days of their hire date.

New hire reporting is required by law in all 50 states, and has been mandatory since October, 1998. Pursuant to federal law, states have the option of imposing civil monetary penalties on employers who fail to report new hires. The fine can be up to $25 per newly hired employee, and if there is a conspiracy between the employer and employee not to report, the penalty can be up to $500 per newly hired employee.

The State of Minnesota works with employers to help ensure that all new hires are reported as required. The Federal Office of Child Support Services (OCSS) provides states a quarterly report containing information on employers who may not have reported all new hires as required.

Using the quarterly report, our Center may mail notices to employers who appear to be non-compliant in reporting their new hires. Aside from providing information on legal requirements, the notice also provides information on how to comply with new hire reporting laws, so employers may avoid future notices.

Using a different FEIN to report your new hires and your quarterly wage information may also cause you to appear as non-compliant. If you have more than one FEIN, please make certain you use the same FEIN you use to report your quarterly wage information when reporting new hires. If you receive a non-compliance notice from our center and you believe you may be using multiple FEINs, please contact our center.

The Minnesota New Hire Reporting Center also monitors regular new hire reports coming into the Center, and attempts to contact employers who appear to have lapsed or who have irregular new hire reporting histories.

New hire reporting is a valuable tool that contributes to the well-being of many families, and assists with preventing fraudulent unemployment payments and/or welfare benefit payments. To learn more about the benefits of new hire reporting, click here. 

If you have received a notice from the Center which referenced a lack of compliance, or if you have additional questions about complying with the new hire reporting law, contact us.