HF 234

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to employment; modifying provisions relating 
  1.3             to independent contractors; proposing coding for new 
  1.4             law in Minnesota Statutes, chapter 176. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [176.042] [INDEPENDENT CONTRACTORS.] 
  1.7      Subdivision 1.  [GENERAL RULE; ARE EMPLOYEES.] Except as 
  1.8   provided in subdivision 2, every independent contractor doing 
  1.9   commercial or residential building construction or improvements 
  1.10  in the public or private sector is, for the purpose of this 
  1.11  chapter, an employee of any employer under this chapter for whom 
  1.12  the independent contractor is performing service in the course 
  1.13  of the trade, business, profession, or occupation of that 
  1.14  employer at the time of the injury. 
  1.15     Subd. 2.  [EXCEPTION.] An independent contractor is not an 
  1.16  employee of an employer for whom the independent contractor 
  1.17  performs work or services if the independent contractor meets 
  1.18  all of the following conditions: 
  1.19     (1) maintains a separate business with the independent 
  1.20  contractor's own office, equipment, materials, and other 
  1.21  facilities; 
  1.22     (2) holds or has applied for a federal employer 
  1.23  identification number; 
  1.24     (3) operates under contracts to perform specific services 
  1.25  or work for specific amounts of money and under which the 
  2.1   independent contractor controls the means of performing the 
  2.2   services or work; 
  2.3      (4) incurs the main expenses related to the service or work 
  2.4   that the independent contractor performs under contract; 
  2.5      (5) is responsible for the satisfactory completion of work 
  2.6   or services that the independent contractor contracts to perform 
  2.7   and is liable for a failure to complete the work or service; 
  2.8      (6) receives compensation for work or service performed 
  2.9   under a contract on a commission or per-job or competitive bid 
  2.10  basis and not on any other basis; 
  2.11     (7) may realize a profit or suffer a loss under contracts 
  2.12  to perform work or service; 
  2.13     (8) has continuing or recurring business liabilities or 
  2.14  obligations; and 
  2.15     (9) the success or failure of the independent contractor's 
  2.16  business depends on the relationship of business receipts to 
  2.17  expenditures.