SF 3202

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/02/2025 10:26 a.m.

A bill for an act
relating to employment; establishing a rebuttable presumption that an individual
is an employee; amending Minnesota Statutes 2024, sections 181.722, subdivision
3; 268.035, subdivision 25b.

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

Section 1.

Minnesota Statutes 2024, section 181.722, subdivision 3, is amended to read:

Subd. 3.

Determination of employment relationship.

For purposes of this section, deleted text begin the
nature of an employment relationship is determined using the same tests and in the same
manner as employee status is determined under deleted text end new text begin there is a rebuttable presumption that an
individual is an employee that may be overturned through new text end the applicable workers'
compensation and unemployment insurance program laws and rules.

Sec. 2.

Minnesota Statutes 2024, section 268.035, subdivision 25b, is amended to read:

Subd. 25b.

Trucking and messenger/courier industries; independent contractors.

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

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

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

(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;

(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;

(6) the individual enters into a written contract that specifies the relationship to be that
of an independent contractor and not that of an employee; and

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