Subdivision 1. Definitions. The definitions in this subdivision apply to this section.
(a) "Person" means any individual, limited liability company, limited liability partnership, corporation, partnership, incorporated or unincorporated association, sole proprietorship, joint stock company, or any other legal or commercial entity.
(b) "Department" means the Department of Labor and Industry.
(c) "Commissioner" means the commissioner of labor and industry or a duly designated representative of the commissioner who is either an employee of the Department of Labor and Industry or person working under contract with the Department of Labor and Industry.
(d) "Individual" means a human being.
(e) "Day" means calendar day unless otherwise provided.
(f) "Knowingly" means knew or could have known with the exercise of reasonable diligence.
(g) "Business entity" means a person other than an individual or a sole proprietor.
Subd. 2. Limited application. This section only applies to individuals performing public or private sector commercial or residential building construction or improvement services. Building construction and improvement services do not include (1) the manufacture, supply, or sale of products, materials, or merchandise; (2) landscaping services for the maintenance or removal of existing plants, shrubs, trees, and other vegetation, whether or not the services are provided as part of a contract for the building construction or improvement services; and (3) all other landscaping services, unless the other landscaping services are provided as part of a contract for the building construction or improvement services.
Subd. 3. Employee-employer relationship. Except as provided in subdivision 4, for purposes of chapters 176, 177, 181A, 182, and 268, as of January 1, 2009, an individual who performs services for a person that are in the course of the person's trade, business, profession, or occupation is an employee of that person and that person is an employer of the individual.
Subd. 4. Independent contractor. (a) An individual is an independent contractor and not an employee of the person for whom the individual is performing services in the course of the person's trade, business, profession, or occupation only if the individual:
(1) maintains a separate business with the individual's own office, equipment, materials, and other facilities;
(2)(i) holds or has applied for a federal employer identification number or (ii) has filed business or self-employment income tax returns with the federal Internal Revenue Service if the individual has performed services in the previous year;
(3) is operating under contract to perform the specific services for the person for specific amounts of money and under which the individual controls the means of performing the services;
(4) is incurring the main expenses related to the services that the individual is performing for the person under the contract;
(5) is responsible for the satisfactory completion of the services that the individual has contracted to perform for the person and is liable for a failure to complete the services;
(6) receives compensation from the person for the services performed under the contract on a commission or per-job or competitive bid basis and not on any other basis;
(7) may realize a profit or suffer a loss under the contract to perform services for the person;
(8) has continuing or recurring business liabilities or obligations; and
(9) the success or failure of the individual's business depends on the relationship of business receipts to expenditures.
An individual who is not registered, if required by section 326B.701, is presumed to be an employee of a person for whom the individual performs services in the course of the person's trade, business, profession, or occupation. The person for whom the services were performed may rebut this presumption by showing that the unregistered individual met all nine factors in this paragraph at the time the services were performed.
(b) If an individual is an owner or partial owner of a business entity, the individual is an employee of the person for whom the individual is performing services in the course of the person's trade, business, profession, or occupation, and is not an employee of the business entity in which the individual has an ownership interest, unless:
(1) the business entity meets the nine factors in paragraph (a);
(2) invoices and payments are in the name of the business entity; and
(3) the business entity is registered with the secretary of state, if required.
If the business entity in which the individual has an ownership interest is not registered, if required by section 326B.701, the individual is presumed to be an employee of a person for whom the individual performs services and not an employee of the business entity in which the individual has an ownership interest. The person for whom the services were performed may rebut the presumption by showing that the business entity met the requirements of clauses (1) to (3) at the time the services were performed.
Subd. 4a. MS 2012 [Renumbered 326B.701, subd 2]
Subd. 5. MS 2012 [Renumbered 326B.701, subd 3]
Subd. 5a. MS 2012 [Renumbered 326B.701, subd 4]
Subd. 6. [Repealed, 2012 c 295 art 2 s 13]
Subd. 7. Prohibited activities related to independent contractor status. (a) The prohibited activities in this subdivision are in addition to those prohibited in sections 326B.081 to 326B.085.
(b) An individual shall not hold himself or herself out as an independent contractor unless the individual meets the requirements of subdivision 4.
(c) A person who provides construction services in the course of the person's trade, business, occupation, or profession shall not:
(1) require an individual through coercion, misrepresentation, or fraudulent means to adopt independent contractor status or form a business entity;
(2) knowingly misrepresent or misclassify an individual as an independent contractor.
Subd. 7a. MS 2012 [Renumbered 326B.701, subd 5]
Subd. 8. [Repealed, 2012 c 295 art 2 s 13]
Subd. 8a. MS 2012 [Renumbered 326B.701, subd 6]
Subd. 9. [Repealed, 2012 c 295 art 2 s 13]
Subd. 10. [Repealed, 2012 c 295 art 2 s 13]
Subd. 10a. MS 2012 [Renumbered 326B.701, subd 7]
Subd. 11. [Repealed, 2012 c 295 art 2 s 13]
Subd. 12. [Repealed, 2012 c 295 art 2 s 13]
Subd. 13. Rulemaking. The commissioner may, in consultation with the commissioner of revenue and the commissioner of employment and economic development, adopt, amend, suspend, and repeal rules under the rulemaking provisions of chapter 14 that relate to the commissioner's responsibilities under this section. This subdivision is effective May 26, 2007.
Subd. 14. [Repealed, 2012 c 295 art 2 s 13]
Subd. 15. Notice and review by commissioners of revenue and employment and economic development. When the commissioner has reason to believe that a person has violated subdivision 7, paragraph (b); or (c), clause (1) or (2), the commissioner must notify the commissioner of revenue and the commissioner of employment and economic development. Upon receipt of notification from the commissioner, the commissioner of revenue must review the information returns required under section 6041A of the Internal Revenue Code. The commissioner of revenue shall also review the submitted certification that is applicable to returns audited or investigated under section 289A.35.
Subd. 16. MS 2012 [Renumbered 326B.701, subd 8]
Subd. 17. [Repealed, 2012 c 295 art 2 s 13]
2007 c 135 art 3 s 15; 2007 c 140 art 8 s 30; art 13 s 4; 2008 c 337 s 2; 2009 c 78 art 6 s 17; 2010 c 347 art 3 s 1; 1Sp2011 c 4 art 3 s 1; 2012 c 295 art 2 s 1-10; 2014 c 305 s 13-17,31
Structure Minnesota Statutes
Chapters 175 - 186 — Labor, Industry
Section 181.01 — Wages Of Minors; To Whom Paid.
Section 181.02 — Salary Or Wages Not To Be Paid By Nonnegotiable Instruments.
Section 181.03 — Certain Acts Relating To Payment Of Wages Unlawful.
Section 181.031 — Employers Not To Accept Consideration For Securing Employment.
Section 181.032 — Required Statement Of Earnings By Employer; Notice To Employee.
Section 181.04 — Assignment, Sale, Or Transfer Of Wages; When Not Effective.
Section 181.041 — Garnishment; Assignment, Sale, Or Transfer Of Wages; When Not Effective.
Section 181.05 — Consent Of Employer To Assignment Required.
Section 181.06 — Assignment Of Wages; Payroll Deductions.
Section 181.063 — Assignment Of Wages, Public Employees.
Section 181.07 — Assignment Of Unearned Wages As Security.
Section 181.08 — Public Service Corporations; Payment Of Wages, Requirements.
Section 181.09 — Recovery Of Wages, Costs.
Section 181.10 — Wages Paid Every 15 Days.
Section 181.101 — Wages; How Often Paid.
Section 181.11 — Discharged Employee Must Be Paid Within 24 Hours.
Section 181.13 — Penalty For Failure To Pay Wages Promptly.
Section 181.14 — Payment To Employees Who Quit Or Resign; Settlement Of Disputes.
Section 181.145 — Prompt Payment Of Commissions To Commission Salespeople.
Section 181.15 — When Employee Not Entitled To Benefits.
Section 181.16 — Construction Of Sections 181.13 To 181.171.
Section 181.171 — Court Actions; Private Party Civil Actions.
Section 181.172 — Wage Disclosure Protection.
Section 181.1721 — Attorney General Enforcement.
Section 181.275 — Regulating Nurses' Overtime.
Section 181.52 — Interference With Employment.
Section 181.53 — Conditions Precedent To Employment Not Required.
Section 181.535 — Armed Forces Reserves Or National Guard Status.
Section 181.54 — Commissioner Of Human Services, Safety Inspection Work.
Section 181.55 — Written Statement To Employees By Employers.
Section 181.56 — No Statement Given; Burden Of Proof.
Section 181.57 — Application Of Sections 181.55 And 181.56.
Section 181.58 — Surviving Spouse Paid Wages Due.
Section 181.59 — Discrimination On Account Of Race, Creed, Or Color Prohibited In Contract.
Section 181.61 — Medical Examination; Records, Costs.
Section 181.63 — Sale Or Use Of Silicate, Silica Dust, Or Silicon Flour For Certain Purposes.
Section 181.635 — Recruitment; Food Processing Employment.
Section 181.64 — False Statements As Inducement To Entering Employment.
Section 181.645 — Expenses For Background Checks, Testing, And Orientation.
Section 181.66 — Equal Pay For Equal Work Law; Definitions.
Section 181.67 — Wage Discrimination Based On Sex; Protection Of Employees Involved In Proceeding.
Section 181.68 — Actions; Limitations, Damages, Attorney Fees, Parties, Compromises.
Section 181.721 — Construction Bid Equity.
Section 181.722 — Misrepresentation Of Employment Relationship Prohibited.
Section 181.723 — Construction Contractors.
Section 181.73 — Migrant Labor; Health Insurance.
Section 181.74 — Failure Of Employer To Pay Benefits Or Wage Supplements, Penalty.
Section 181.75 — Polygraph Tests Of Employees Or Prospective Employees Prohibited.
Section 181.76 — Disclosure Of Lie Detector Tests Prohibited.
Section 181.78 — Agreements; Terms Relating To Inventions.
Section 181.79 — Wages Deductions For Faulty Workmanship, Loss, Theft, Or Damage.
Section 181.80 — Union Notice Of Injury Or Death.
Section 181.81 — Dismissal For Age; Prohibition; Exceptions; Remedies.
Section 181.82 — Benefits Based On Job Performance Prohibited.
Section 181.83 — Corn Detasselers; Termination Of Employment.
Section 181.84 — Corn Detasselers; Work Conditions.
Section 181.85 — Migrant Labor; Definitions.
Section 181.86 — Employment Statement.
Section 181.87 — Payment Terms.
Section 181.88 — Record Keeping.
Section 181.89 — Civil Actions.
Section 181.90 — Use Wagner-peyser System.
Section 181.91 — Preservation Of Existing Remedies.
Section 181.92 — Leaves For Adoptive Parents.
Section 181.93 — Notice To Employees And Applicants Of Bankruptcy.
Section 181.931 — Definitions.
Section 181.932 — Disclosure Of Information By Employees.
Section 181.933 — Notice Of Termination.
Section 181.934 — Employee Notice.
Section 181.935 — Individual Remedies; Penalty.
Section 181.937 — Reprisals For Failure To Contribute; Civil Action.
Section 181.938 — Nonwork Activities; Prohibited Employer Conduct.
Section 181.939 — Nursing Mothers, Lactating Employees, And Pregnancy Accommodations.
Section 181.940 — Definitions.
Section 181.941 — Pregnancy And Parenting Leave.
Section 181.9412 — School Conference And Activities Leave.
Section 181.9413 — Sick Leave Benefits; Care Of Relatives.
Section 181.942 — Reinstatement After Leave.
Section 181.943 — Relationship To Other Leave.
Section 181.9435 — Division; Investigations, Reports.
Section 181.9436 — Posting Of Law.
Section 181.944 — Individual Remedies.
Section 181.945 — Leave For Bone Marrow Donations.
Section 181.9456 — Leave For Organ Donation.
Section 181.9458 — Authorization For Blood Donation Leave.
Section 181.946 — Leave For Civil Air Patrol Service.
Section 181.948 — Leave To Attend Military Ceremonies.
Section 181.950 — Definitions.
Section 181.951 — Authorized Drug And Alcohol Testing.
Section 181.952 — Policy Contents; Prior Written Notice.
Section 181.953 — Reliability And Fairness Safeguards.
Section 181.954 — Privacy, Confidentiality, And Privilege Safeguards.
Section 181.955 — Construction.
Section 181.957 — Federal Preemption.
Section 181.960 — Definitions.
Section 181.961 — Review Of Personnel Record By Employee.
Section 181.962 — Removal Or Revision Of Information.
Section 181.963 — Use Of Omitted Personnel Record.
Section 181.9631 — Notice Of Employee Rights.
Section 181.964 — Retaliation Prohibited.
Section 181.9641 — Enforcement.
Section 181.966 — Additional Right Of Access To Records.
Section 181.967 — Employment References.
Section 181.970 — Employee Indemnification.
Section 181.9731 — Public Safety Peer Counseling.
Section 181.9732 — Critical Incident Stress Management.
Section 181.974 — Genetic Testing In Employment.