According to documents obtained by Alpha News, State Rep. Bianca Virnig, DFL-Eagan, was awarded a payment of $108,224.54 from her former employer, BrightWorks, in a negotiated settlement connected to an employment dispute.
While disputes between employees and employers are not uncommon, this settlement is noteworthy because Minnesota taxpayers will be on the hook for Virnig’s legal fees in the matter.
Earlier this week, the Rules Committee of the Minnesota House of Representatives approved a $10,391.40 payment to Virnig’s legal counsel. That payment was specifically designated for the DFL legislator’s fees in connection to the employment dispute.
The Rules Committee hearing
During Tuesday’s meeting of the Rules Committee, DFL House Majority Leader Jamie Long said that Virnig was an employee of an organization that drastically reduced her hours and pay after she was elected to the House last year. According to Long, that change in Virnig’s job occurred because she had taken on the new role as a state legislator.
After the alleged change in her job, Virnig and her then-employer, BrightWorks, negotiated a separation of employment agreement.
A “nonprofit educational cooperative,” BrightWorks provides education services, programs, and resources to school districts and other members of its network. Virnig worked as the director of health and safety for the organization.
Eventually, Virnig and BrightWorks reached a settlement agreement. However, the details of that settlement agreement were not made available to legislators before they voted on whether or not to pay for Virnig’s legal fees.
Discussing the proposed payment to Virnig’s legal counsel, Long said, “We are proposing that we pay for those legal costs, as other employers would in other legal disputes.” The majority leader further stated that because the dispute arose from Virnig’s status as a legislator, it was appropriate for the House to pay the sum.
While legislators from both sides of the aisle expressed their sympathy for Virnig, Republicans on the Rules Committee voiced opposition to paying Virnig’s legal counsel.
Among their criticisms, the GOP legislators said that the situation involving Rep. Virnig and her former employer was a private matter. As such, the Republicans said that taxpayers should not be on the hook for the legal fees. The GOP lawmakers also questioned why the legal fees would not be paid as part of the settlement and expressed concerns that paying those costs would set a bad precedent.
In the middle of the hearing, the GOP attempted to table the issue in order to learn more about the situation and see the settlement. However, DFL legislators voted down those efforts.
The motion to pay Virnig’s legal bills was passed by a 9-5 vote which fell along party lines; DFLers voting in favor, Republicans voting against. As such, taxpayer dollars coming from the House will be used to pay Virnig’s legal counsel.
The details of the settlement agreement
According to documents obtained by Alpha News, Virnig signed a resignation agreement with BrightWorks in September of this year. In that agreement, Virnig resigned from BrightWorks, released the organization from various legal claims, and received a payment of $108,224.54; minus taxes and deductions.
The agreement described that sum as “payment for past and future wages loss.” According to the settlement, the $108,224.54 payment would be issued “within thirty days of full execution of the Agreement.”
Furthermore, the agreement specifically outlined that “Each party is responsible for its own costs, expenses, and any attorney fees associated with this Agreement.” As such, Rep. Virnig signed this agreement knowing that she would be responsible to pay her own legal bills, not BrightWorks.
The settlement document also included the following statement:
“This Agreement is made in compromise of disputed claims and is not to be construed as an admission of liability or wrongdoing by or on behalf of BrightWorks or any party identified in interest with BrightWorks. BrightWorks specifically denies any wrongdoing or liability.”
Why are taxpayers footing the bill for Virnig’s legal fees?
Alpha News reached out to Virnig, the leadership of the House DFL Caucus, and BrightWorks for this story.
BrightWorks provided Alpha News with a copy of the settlement agreement, but declined to comment citing a prohibition on discussing private personnel data. Meanwhile, neither Virnig nor the House DFL Caucus responded to media inquiries.
State lawmakers in Minnesota are considered part-time legislators because the Minnesota Legislature meets only a few months out of the year. Many members of the Minnesota House and Senate have other jobs outside of the legislature that they work when they are not in St. Paul.
Luke Sprinkel
Luke Sprinkel previously worked as a Legislative Assistant at the Minnesota House of Representatives. He grew up as a Missionary Kid (MK) living in England, Thailand, Tanzania, and the Middle East. Luke graduated from Regent University in 2018.
