A provision in Minnesota's new grooming law creates direct criminal liability for small businesses whose employees or contractors work in schools.
Most Minnesota professional services owners who contract staff or services to K-12 schools don't realize they now face direct criminal felony exposure for the actions of their employees and contractors. A provision buried in HF3489, signed into law in 2024, creates this liability starting August 1, 2026.
HF3489 establishes a new felony offense for grooming—defined as solicitation or grooming acts toward any enrolled student. The law applies specifically to school-employed contractors, meaning anyone your business assigns to work in a K-12 setting.
Under Section 8, Subdivision 2e (page 6 of the bill), the criminal penalties are severe: up to 5 years imprisonment and a $10,000 fine. Critically, these penalties apply regardless of the student's age.
This provision directly impacts small and mid-sized professional services firms that supply:
• Tutors and academic coaches
• Athletic coaches and trainers
• Mental health therapists and counselors
• Educational vendors and consultants
• Specialized service providers (speech, occupational therapy, etc.)
• Any other contracted staff working on school premises or with enrolled students
If your business has employees or independent contractors assigned to Minnesota K-12 schools, you have new criminal liability exposure for their conduct.
This isn't a civil liability issue—it's a criminal one. Your business doesn't just face lawsuits; you face potential criminal prosecution if someone you employ or contract commits grooming acts toward a student. This creates several immediate business concerns:
Compliance obligations: You need clear policies, screening procedures, and training protocols for anyone working in schools. Vague or absent policies won't protect you.
Contractor vetting: Background checks alone may not be sufficient. You'll need documented screening processes that demonstrate due diligence.
Insurance and indemnification: Your current professional liability or general liability policies may not cover criminal conduct by contractors. Review your coverage now.
Contract language: Agreements with school districts and with your own contractors need to address compliance with this law and clarify liability allocation.
The law takes effect August 1, 2026, and applies to crimes committed on or after that date. This gives you roughly 18 months to review your operations, update policies, and ensure your screening and training protocols meet the standard this law establishes.
If your firm contracts staff to Minnesota schools, now is the time to:
• Review HF3489, Section 8, Subdivision 2e
• Audit your current screening and vetting procedures
• Consult your insurance broker about coverage gaps
• Update contractor agreements and employee handbooks
• Implement documented training on this obligation
This is a significant change in criminal liability for school-contracting businesses. Understanding it now—before August 2026—is essential risk management.
Source: Minnesota HF3489, Section 8, Subdivision 2e