HF 3819

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to employment; requiring written agreements to establish existence of
independent contractor relationship; proposing coding for new law in Minnesota
Statutes, chapter 181.

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

Section 1.

new text begin [181.585] WRITTEN AGREEMENT ESTABLISHING
INDEPENDENT CONTRACTOR RELATIONSHIP.
new text end

new text begin Subdivision 1. new text end

new text begin Written agreement; proof of independent contractor relationship.
new text end

new text begin An employer using a worker??a??a??s services in the course of the employer??a??a??s trade, business,
profession, or occupation may prove that the employer has entered an independent
contractor relationship with the worker by executing a written agreement in compliance
with this section.
new text end

new text begin Subd. 2. new text end

new text begin Contents of agreement; construction. new text end

new text begin With respect to workers doing
commercial or residential building construction or improvements in the public or private
sector, a written agreement under this section must state that the worker providing services
meets all of the following conditions:
new text end

new text begin (1) maintains a separate business with the worker's own office, equipment, materials,
and other facilities;
new text end

new text begin (2) holds or has applied for a federal employer identification number;
new text end

new text begin (3) operates under contracts to perform specific services or work for specific amounts
of money under which the worker controls the means of performing the services or work;
new text end

new text begin (4) incurs the main expenses related to the service or work that the worker performs
under contract;
new text end

new text begin (5) is responsible for the satisfactory completion of work or services that the worker
contracts to perform and is liable for a failure to complete the work or service;
new text end

new text begin (6) receives compensation for work or service performed under a contract on a
commission or per-job or competitive bid basis and not on any other basis;
new text end

new text begin (7) may realize a profit or suffer a loss under contracts to perform work or service;
new text end

new text begin (8) has continuing or recurring business liabilities or obligations; and
new text end

new text begin (9) the success or failure of the worker's business depends on the relationship of
business receipts to expenditures.
new text end

new text begin Subd. 3. new text end

new text begin Contents of agreement; other services. new text end

new text begin The commissioner shall adopt
rules to establish the required contents of agreements between employers and workers
who are performing services other than commercial or residential building construction or
improvements. For each type of service identified by the commissioner, the commissioner
shall list all of the conditions that a worker must meet to be considered an independent
contractor. An agreement must be dated and must contain the signatures of the employer
and the worker.
new text end

new text begin Subd. 4. new text end

new text begin Rebuttable presumptions. new text end

new text begin A written agreement executed in compliance
with this section creates a rebuttable presumption that the worker providing services is an
independent contractor. Failure to execute a written agreement in compliance with this
section creates a rebuttable presumption that a worker providing services is an employee.
new text end

new text begin Subd. 5. new text end

new text begin Copy of agreement; retention by worker. new text end

new text begin A worker who has executed a
written agreement in compliance with this section must retain a copy of the agreement
and have the copy of the agreement available whenever the worker is performing services
covered by the agreement.
new text end

new text begin Subd. 6. new text end

new text begin Notice; commissioner of labor and industry. new text end

new text begin An employer who has
executed a written agreement in compliance with this section must provide a copy of
the agreement to the commissioner of labor and industry within 30 days of executing
the agreement.
new text end

new text begin Subd. 7. new text end

new text begin Agreement null and void. new text end

new text begin A written agreement executed in compliance
with this section is null and void and creates no presumption of an independent contractor
relationship if:
new text end

new text begin (1) consent of either party to the agreement is obtained through fraud,
misrepresentation, duress, coercion, false statements, or intimidation; or
new text end

new text begin (2) one or both parties executing the agreement knowingly misrepresents the
relationship between the employer and the worker.
new text end

new text begin An employer who misrepresents the nature of the employer's relationship with a worker
under clause (2) is in violation of section 181.722.
new text end