1.1 	A bill for an act
1.2 	relating to employment; requiring written agreements to establish existence of 
1.3 	independent contractor relationship;proposing coding for new law in Minnesota 
1.4 	Statutes, chapter 181.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [181.585] WRITTEN AGREEMENT ESTABLISHING 
1.7 	INDEPENDENT CONTRACTOR RELATIONSHIP.
1.8 		Subdivision 1.Written agreement; proof of independent contractor relationship.
 1.9 	An employer using a worker??a??a??s services in the course of the employer??a??a??s trade, business, 
1.10 	profession, or occupation may prove that the employer has entered an independent 
1.11 	contractor relationship with the worker by executing a written agreement in compliance 
1.12 	with this section.
1.13 		Subd. 2.Contents of agreement; construction. With respect to workers doing 
1.14 	commercial or residential building construction or improvements in the public or private 
1.15 	sector, a written agreement under this section must state that the worker providing services 
1.16 	meets all of the following conditions:
1.17 	(1) maintains a separate business with the worker's own office, equipment, materials, 
1.18 	and other facilities;
1.19 	(2) holds or has applied for a federal employer identification number;
1.20 	(3) operates under contracts to perform specific services or work for specific amounts 
1.21 	of money under which the worker controls the means of performing the services or work;
1.22 	(4) incurs the main expenses related to the service or work that the worker performs 
1.23 	under contract;
2.1 	(5) is responsible for the satisfactory completion of work or services that the worker 
2.2 	contracts to perform and is liable for a failure to complete the work or service;
2.3 	(6) receives compensation for work or service performed under a contract on a 
2.4 	commission or per-job or competitive bid basis and not on any other basis;
2.5 	(7) may realize a profit or suffer a loss under contracts to perform work or service;
2.6 	(8) has continuing or recurring business liabilities or obligations; and
2.7 	(9) the success or failure of the worker's business depends on the relationship of 
2.8 	business receipts to expenditures.
2.9 		Subd. 3.Contents of agreement; other services. The commissioner shall adopt 
2.10 	rules to establish the required contents of agreements between employers and workers 
2.11 	who are performing services other than commercial or residential building construction or 
2.12 	improvements. For each type of service identified by the commissioner, the commissioner 
2.13 	shall list all of the conditions that a worker must meet to be considered an independent 
2.14 	contractor. An agreement must be dated and must contain the signatures of the employer 
2.15 	and the worker.
2.16 		Subd. 4.Rebuttable presumptions. A written agreement executed in compliance 
2.17 	with this section creates a rebuttable presumption that the worker providing services is an 
2.18 	independent contractor. Failure to execute a written agreement in compliance with this 
2.19 	section creates a rebuttable presumption that a worker providing services is an employee.
2.20 		Subd. 5. Copy of agreement; retention by worker.  A worker who has executed a 
2.21 	written agreement in compliance with this section must retain a copy of the agreement 
2.22 	and have the copy of the agreement available whenever the worker is performing services 
2.23 	covered by the agreement. 
2.24 		Subd. 6. Notice; commissioner of labor and industry.  An employer who has 
2.25 	executed a written agreement in compliance with this section must provide a copy of 
2.26 	the agreement to the commissioner of labor and industry within 30 days of executing 
2.27 	the agreement. 
2.28 		Subd. 7.Agreement null and void. A written agreement executed in compliance 
2.29 	with this section is null and void and creates no presumption of an independent contractor 
2.30 	relationship if:
2.31 	(1) consent of either party to the agreement is obtained through fraud, 
2.32 	misrepresentation, duress, coercion, false statements, or intimidation; or
2.33 	(2) one or both parties executing the agreement knowingly misrepresents the 
2.34 	relationship between the employer and the worker.
2.35 	An employer who misrepresents the nature of the employer's relationship with a worker 
2.36 	under clause (2) is in violation of section 181.722.