HF 813

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:42am

A bill for an act
relating to labor and employment; regulating trucking industry classifications of
employment; amending Minnesota Statutes 2008, section 268.035, subdivision
25b.

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

Section 1.

Minnesota Statutes 2008, section 268.035, subdivision 25b, is amended to
read:

Subd. 25b.

Trucking industry/independent contractors.

In the trucking industry,
an owner-operator of a vehicle that is licensed and registered as a truck, tractor, or
truck-tractor by a governmental motor vehicle regulatory agency is an independent
contractor, and is not considered an employee, while performing services in the operation
of the truck only if each of the following factors is present:

deleted text begin (1) the individual owns the equipment or holds it under a bona fide lease arrangement;
deleted text end

deleted text begin (2) the individual is responsible for the maintenance of the equipment;
deleted text end

deleted text begin (3) the individual bears the principal burdens of the operating costs, including fuel,
repairs, supplies, vehicle insurance, and personal expenses while on the road;
deleted text end

deleted text begin (4) the individual is responsible for supplying the necessary personal services
to operate the equipment;
deleted text end

deleted text begin (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; and
deleted text end

deleted text begin (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.
deleted text end

new text begin (1) the individual is substantially free from control or direction over the performance
of services, both under a contract of service and in fact;
new text end

new text begin (2) the service provided by the individual is either outside the usual course of
business of the enterprise for which service is performed or the service is performed
outside of all the places of business of the enterprise for which the service is performed;
and
new text end

new text begin (3) the individual is customarily engaged in an independently established trade,
occupation, profession, or business where the individual does not routinely become
unemployed when the relationship with a particular enterprise ends.
new text end

Sec. 2. new text begin DEPARTMENT AUDITS; EMPLOYEE STATUS DETERMINATION;
DATA SHARING.
new text end

new text begin The commissioners of employment and economic development, revenue, and labor
and industry shall:
new text end

new text begin (1) increase data sharing regarding determinations of independent contractor
classifications;
new text end

new text begin (2) conduct sufficient audits of trucking industry employers to determine whether
patterns of improper classifications of owner-operators as independent contractors exists;
new text end

new text begin (3) in addition to the audits required by clause (2), or any other audits, audit
enterprises that have been found by courts and regulators in other jurisdictions to have
improperly classified owner-operators as independent contractors; and
new text end

new text begin (4) in order to ensure proper classification, develop a system that permits workers
or their representatives to request an employee status determination from any of the
departments of employment and economic development, revenue, or labor and industry.
To the extent practicable, the departments shall maintain confidentiality of any worker
requesting a determination and no employer may retaliate against a worker for requesting
an employee status determination. The employee status determination may be appealed by
the individual requesting the determination.
new text end