HF 4285

as introduced - 90th Legislature (2017 - 2018) Posted on 03/29/2018 02:28pm

A bill for an act
relating to employment; requiring prompt payment of wages to independent
contractors; providing civil penalties; 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 [181.146] UNLAWFUL PAYMENT TO INDEPENDENT CONTRACTOR.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms
have the meanings given unless expressly stated.
new text end

new text begin (b) "Independent contractor" means a person who performs services for another person
or business under an express or implied agreement and who is not subject to the other
person's or business's control of, or right to control, the manner and means of performing
the services.
new text end

new text begin (c) "Hiring party" means a person or business who retains an independent contractor to
provide a service.
new text end

new text begin Subd. 2. new text end

new text begin Unlawful payment practices. new text end

new text begin Except as otherwise provided by law, the
contracted compensation amount must be paid to the independent contractor either:
new text end

new text begin (1) on or before the date the compensation is due under the terms of the contract; or
new text end

new text begin (2) if the contract does not specify when the hiring party must pay the contracted
compensation or the mechanism by which the date will be determined, no later than 30 days
after the completion of the independent contractor's services under the contract.
new text end

new text begin Subd. 3. new text end

new text begin Penalty for untimely payment. new text end

new text begin If the hiring party fails to pay the independent
contractor the contracted compensation amount by the date required under subdivision 2,
the hiring party is liable to the independent contractor, in addition to the contracted amount,
for a penalty for each day, not exceeding 15 days, which the employer is late in making full
payment or satisfactory settlement to the independent contractor of the contracted amount.
The daily penalty shall be in the amount equal to 1/15 of the independent contractor's
contracted amount which remains unpaid at the time that the penalty is assessed.
new text end

new text begin Subd. 4. new text end

new text begin Civil action; damages; attorney fees. new text end

new text begin An independent contractor may bring
a civil action seeking redress for violations of this section directly to district court. A hiring
party who is found to have violated this section is liable to the aggrieved party for the civil
penalties or damages, including compensatory damages and other appropriate relief including
but not limited to injunctive relief. An action brought under this subdivision may be filed
in the district court of the county where the violation is alleged to have been committed,
where the respondent resides or has a principal place of business, or any other court of
competent jurisdiction. The court shall order a hiring party who is found to have committed
a violation to pay to the aggrieved party reasonable costs, disbursements, witness fees, and
attorney fees.
new text end