SF 910

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:17am

A bill for an act
relating to employment; regulating the employment status of certain truckers
for the purpose of unemployment compensation and workers' compensation;
amending Minnesota Statutes 2008, section 268.035, subdivision 25b; proposing
coding for new law in Minnesota Statutes, chapter 176; repealing Minnesota
Rules, parts 5224.0290; 5224.0291; 5224.0292.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [176.043] TRUCKING INDUSTRY; INDEPENDENT
CONTRACTORS.
new text end

new text begin In the trucking and messenger/courier industries, an operator of a vehicle that
is licensed and registered as a truck, tractor, truck-tractor, or messenger/courier by a
governmental motor vehicle regulatory agency is an employee unless each of the following
factors are present, and if each factor is present, the operator is an independent contractor:
new text end

new text begin (1) the individual owns the equipment or holds it under a bona fide lease arrangement;
new text end

new text begin (2) the individual is responsible for the maintenance of the equipment;
new text end

new text begin (3) the individual is responsible for the operating costs, including fuel, repairs,
supplies, vehicle insurance, and personal expenses. The individual may be paid the
carrier's fuel surcharge and incidental costs, including but not limited to, tolls, permits,
and lumper fees;
new text end

new text begin (4) the individual is responsible for supplying the necessary personal services
to operate the equipment;
new text end

new text begin (5) the individual's compensation is based on factors related to the work performed,
such as a percentage of any schedule of rates, and not on the basis of the hours or time
expended;
new text end

new text begin (6) the individual substantially controls the means and manner of performing the
services, in conformance with regulatory requirements and specifications of the shipper;
and
new text end

new text begin (7) the individual enters into a written contract that specifies the relationship to be
that of an independent contractor and not that of an employee.
new text end

Sec. 2.

Minnesota Statutes 2008, section 268.035, subdivision 25b, is amended to read:

Subd. 25b.

Trucking industry/independent contractors.

In the trucking deleted text begin industry deleted text end new text begin
or messenger/courier industries new text end , an deleted text begin owner-operator deleted text end new text begin operator new text end of a vehicle that is licensed
and registered as a truck, tractor, deleted text begin or deleted text end truck-tractor new text begin , or messenger/courier new text end by a governmental
motor vehicle regulatory agency is an deleted text begin independent contractor, and is not considered an
employee, while performing services in the operation of the truck only if deleted text end new text begin employee, unless
new text end each of the following factors is present new text begin and if each factor is present, the operator is an
independent contractor new text end :

(1) the individual owns the equipment or holds it under a bona fide lease arrangement;

(2) the individual is responsible for the maintenance of the equipment;

(3) the individual deleted text begin bears the principal burdens of deleted text end new text begin is responsible for new text end the operating
costs, including fuel, repairs, supplies, vehicle insurance, and personal expenses deleted text begin while
on the road deleted text end new text begin . The individual may be paid the carrier's fuel surcharge and incidental costs,
including but not limited to, tolls, permits, and lumper fees new text end ;

(4) the individual is responsible for supplying the necessary personal services
to operate the equipment;

(5) the individual's compensation is based on factors related to the work performed,
such as a percentage of any schedule of rates, and not on the basis of the hours or time
expended; deleted text begin and
deleted text end

(6) the individual enters into a written contract that new text begin includes billing and payment
procedures, and new text end specifies the relationship to be that of an independent contractor and not
that of an employee new text begin ; and
new text end

new text begin (7) the individual substantially controls the means and manner of performing the
services, in conformance with regulatory requirements and specifications of the shipper new text end .

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Rules, parts 5224.0290; 5224.0291; and 5224.0292, new text end new text begin are repealed.
new text end