Minnesota Legislature
SF 733
as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:15am
Current Version - as introduced
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A bill for an act
relating to employment; providing standard definition of independent contractor
for truck driver-operators for purposes of workers' compensation, unemployment
compensation, and income taxation; amending Minnesota Statutes 2008, sections
268.035, subdivision 25b; 290.92, by adding a subdivision; proposing coding
for new law in Minnesota Statutes, chapter 176; repealing Minnesota Rules,
parts 5224.0290; 5224.0291.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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[176.043] TRUCKING INDUSTRY; INDEPENDENT
CONTRACTORS.
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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 for purposes of this chapter, not an employee, while
performing services in the operation of the vehicle, if each of the following factors are
substantially present:
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(1) the individual owns the equipment or holds it under a bona fide lease arrangement;
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(2) the individual is responsible for the maintenance of the equipment;
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(3) the individual bears the principal burden of the operating costs, including fuel,
repairs, supplies, vehicle insurance, and personal expenses while on the road;
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(4) the individual is responsible for supplying the necessary personal services
to operate the equipment;
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(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;
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(6) the individual generally determines the details and means of performing the
services, in conformance with regulatory requirements, operating procedures of the
carrier, and specifications of the shipper; and
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(7) the individual enters into a written contract that specifies the relationship to be
that of an independent contractor and not that of an employee.
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Sec. 2.
Minnesota Statutes 2008, section 268.035, subdivision 25b, is amended to read:
Subd. 25b.
Trucking industrydeleted text begin /deleted text end new text begin ; new text end 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
contractornew text begin for purposes of this chapternew text end , deleted text begin and isdeleted text end not deleted text begin considereddeleted text end an employee, while
performing services in the operation of the deleted text begin truck onlydeleted text end new text begin vehicle,new text end if each of the following
factors deleted text begin isdeleted text end new text begin are substantiallynew text end present:
(1) the individual owns the equipment or holds it under a bona fide lease arrangement;
(2) the individual is responsible for the maintenance of the equipment;
(3) the individual bears the principal deleted text begin burdensdeleted text end new text begin burdennew text end of the operating costs, including
fuel, repairs, supplies, vehicle insurance, and personal expenses while on the road;
(4) the individual is responsible for supplying the necessary personal services
to operate the equipment;
(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; deleted text begin and
deleted text end
(6) new text begin the individual generally determines the details and means of performing the
services, in conformance with regulatory requirements, operating procedures of the
carrier, and specifications of the shipper; and
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new text begin (7) new text end the individual enters into a written contract that specifies the relationship to be
that of an independent contractor and not that of an employee.
Sec. 3.
Minnesota Statutes 2008, section 290.92, is amended by adding a subdivision
to read:
new text begin Subd. 32. new text end
new text begin Truck driver-owner; independent contractor. new text end
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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 for purposes of this chapter, not an employee, while performing services in the
operation of the vehicle, if each of the following factors are substantially present:
new text end
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(1) the individual owns the equipment or holds it under a bona fide lease arrangement;
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new text begin
(2) the individual is responsible for the maintenance of the equipment;
new text end
new text begin
(3) the individual bears the principal burden of the operating costs, including fuel,
repairs, supplies, vehicle insurance, and personal expenses while on the road;
new text end
new text begin
(4) the individual is responsible for supplying the necessary personal services
to operate the equipment;
new text end
new 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;
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new text begin
(6) the individual generally determines the details and means of performing the
services, in conformance with regulatory requirements, operating procedures of the
carrier, and specifications of the shipper; and
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new text begin
(7) the individual enters into a written contract that specifies the relationship to be
that of an independent contractor and not that of an employee.
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Sec. 4. new text begin REPEALER.
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Minnesota Rules, parts 5224.0290; and 5224.0291,
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are repealed.
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