HF 439

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

A bill for an act
relating to worker's compensation; prohibiting
employers from misrepresenting the nature of its
employment relationships; requiring reports; amending
Minnesota Statutes, section 176.042, subdivision 1.

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

Section 1.

Minnesota Statutes 2004, section 176.042,
subdivision 1, is amended to read:

Subdivision 1.

General rule; are employees.

new text begin (a) new text end Except
as provided in subdivision 2, every independent contractor doing
commercial or residential building construction or improvements
in the public or private sector is, for the purpose of this
chapter, an employee of any employer under this chapter for whom
the independent contractor is performing service in the course
of the trade, business, profession, or occupation of that
employer at the time of the injury.

new text begin (b) No employer described in paragraph (a) shall
misrepresent the nature of its employment relationship with its
employees to any federal, state, or local government unit, to
other employers or to its employees. An employer misrepresents
the nature of its employment relationship with its employees if
it makes any statement regarding the nature of the relationship
that the employer does not in good faith believe to be true or
if it fails to report individuals as employees when legally
required to do so.
new text end

new text begin (c) No employer described in paragraph (a) shall require or
request any employee to enter into any agreement, or sign any
document, that results in misclassification of the employee as
an independent contractor or otherwise does not accurately
reflect the employment relationship with the employer.
new text end

new text begin (d) Any court finding any person guilty of violating this
subdivision shall transmit a copy of the documentation of the
finding of guilt to the commissioner of labor and industry. The
commissioner of labor and industry shall report the finding of
guilt to relevant state and federal agencies, including at least
the commissioner of commerce, the commissioner of employment and
economic development, the commissioner of revenue, the federal
Internal Revenue Service, and the United States Department of
Labor.
new text end