SF 1007

as introduced - 88th Legislature (2013 - 2014) Posted on 03/05/2013 08:48am

A bill for an act
relating to employment; regulating contracts for labor or services for janitors,
security guards, and window cleaners; providing 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 [181.724] CONTRACTS FOR LABOR OR SERVICES; JANITORS,
SECURITY GUARDS, WINDOW CLEANERS.
new text end

new text begin Subdivision 1. new text end

new text begin Contract; insufficient funds. new text end

new text begin A person or entity shall not enter
into a contract or agreement for labor or services with a janitorial, security guard, or
window cleaning contractor, where the person or entity knows or should know that the
contract or agreement does not include funds sufficient to allow the contractor to comply
with all applicable local, state, and federal laws or regulations governing the labor or
services to be provided.
new text end

new text begin Subd. 2. new text end

new text begin Rebuttable presumption. new text end

new text begin There is a rebuttable presumption affecting the
burden of proof that there has been no violation of subdivision 1 where the contract or
agreement with a janitorial, security guard, or window cleaning contractor meets all of
the requirements in subdivision 4.
new text end

new text begin Subd. 3. new text end

new text begin Exclusions. new text end

new text begin Subdivision 1 does not apply to a person or entity who
executes a collective bargaining agreement covering the workers employed under the
contract or agreement, or to a person who enters into a contract or agreement for labor or
services to be performed on the person's home residence, provided that a family member
resides in the residence or residences for which the labor or services are to be performed
for at least part of the year.
new text end

new text begin Subd. 4. new text end

new text begin Written contract; provisions. new text end

new text begin To meet the requirements of subdivision 2,
a contract or agreement with a janitorial, security guard, or window cleaning contractor for
labor or services shall be in writing, in a single document, and contain all of the following
provisions, in addition to any other provisions that may be required by the commissioner:
new text end

new text begin (1) the name, address, and telephone number of the person or entity and the
janitorial, security guard, or window cleaning contractor through whom the labor or
services are to be provided;
new text end

new text begin (2) a description of the labor or services to be provided and a statement of when
those services are to be commenced and completed;
new text end

new text begin (3) the employer identification number for state tax purposes of the janitorial,
security guard, or window cleaning contractor;
new text end

new text begin (4) the workers' compensation insurance policy number and the name, address, and
telephone number of the insurance carrier of the janitorial, security guard, or window
cleaning contractor;
new text end

new text begin (5) the vehicle identification number of any vehicle that is owned by the janitorial,
security guard, or window cleaning contractor and used for transportation in connection
with any service provided pursuant to the contract or agreement, the number of the vehicle
liability insurance policy that covers the vehicle, and the name, address, and telephone
number of the insurance carrier;
new text end

new text begin (6) the address of any real property to be used to house workers in connection with
the contract or agreement;
new text end

new text begin (7) the total number of workers to be employed under the contract or agreement, the
total amount of all wages to be paid, and the date or dates when those wages are to be paid;
new text end

new text begin (8) the amount of the commission or other payment made to the janitorial, security
guard, or window cleaning contractor for services under the contract or agreement;
new text end

new text begin (9) the total number of persons who will be utilized under the contract or agreement
as independent contractors, along with a list of the current local, state, and federal
contractor license identification numbers that the independent contractors are required to
have under local, state, or federal laws or regulations; and
new text end

new text begin (10) the signatures of all parties, and the date the contract or agreement was signed.
new text end

new text begin Subd. 5. new text end

new text begin Material changes. new text end

new text begin (a) To qualify for the rebuttable presumption in
subdivision 2, a material change to the terms and conditions of a contract or agreement
between a person or entity and a janitorial, security guard, or window cleaning contractor
must be in writing, in a single document, and contain all of the provisions listed in
subdivision 4 that are affected by the change.
new text end

new text begin (b) If a provision required to be contained in a contract or agreement under
subdivision 4, clause (7) or (9), is unknown at the time the contract or agreement is
executed, the best estimate available at that time is sufficient to satisfy the requirements of
subdivision 4. If an estimate is used in place of actual figures, the parties to the contract or
agreement have a continuing duty to ascertain the information required under subdivision
4, clause (7) or (9), and to reduce that information to writing according to the requirements
of paragraph (a) once that information becomes known.
new text end

new text begin Subd. 6. new text end

new text begin Written contract; commissioner review. new text end

new text begin A person or entity who enters
into a contract or agreement referred to in subdivision 4 or 5 shall keep a copy of the written
contract or agreement for a period of not less than four years following the termination of
the contract or agreement. Upon the request of the commissioner, any person or entity
who enters into the contract or agreement shall provide to the commissioner a copy of
the provisions of the contract or agreement, and any other documentation, related to
subdivision 4, clauses (1) to (10). Documents obtained under this section are exempt from
disclosure under the Minnesota Government Data Practices Act, chapter 13.
new text end

new text begin Subd. 7. new text end

new text begin Penalties. new text end

new text begin (a) An employee aggrieved by a violation of subdivision 1 may
file an action for damages to recover the greater of all actual damages or $250 per employee
per violation for an initial violation and $1,000 per employee for each subsequent
violation, and, upon prevailing in an action brought under this section, may recover costs
and reasonable attorney fees. An action under this section shall not be maintained unless it
is pleaded and proved that an employee was injured as a result of a violation of a labor law
or regulation in connection with the performance of the contract or agreement.
new text end

new text begin (b) An employee aggrieved by a violation of subdivision 1 may also bring an action
for injunctive relief and, upon prevailing, may recover costs and reasonable attorney fees.
new text end

new text begin Subd. 8. new text end

new text begin Applicability. new text end

new text begin The phrase "janitorial, security guard, or window cleaning
contractor" includes any person, whether or not licensed, who is acting in the capacity of a
janitorial, security guard, or window cleaning contractor.
new text end

new text begin Subd. 9. new text end

new text begin Knowledge; definition. new text end

new text begin (a) The term "knows" includes the knowledge,
arising from familiarity with the normal facts and circumstances of the business activity
engaged in, that the contract or agreement does not include funds sufficient to allow the
contractor to comply with applicable laws.
new text end

new text begin (b) The phrase "should know" includes the knowledge of any additional facts or
information that would make a reasonably prudent person undertake to inquire whether,
taken together, the contract or agreement contains sufficient funds to allow the contractor
to comply with applicable laws.
new text end

new text begin (c) A failure by a person or entity to request or obtain any information from the
contractor that is required by any applicable statute or by the contract or agreement
between them, constitutes knowledge of that information for purposes of this section.
new text end