SF 2688

2nd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to unemployment compensation; eliminating an exception to the general
rule for determining independent contractor status; requiring certain audit
activities; amending Minnesota Statutes 2007 Supplement, section 268.035,
subdivision 25b.

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

Section 1.

Minnesota Statutes 2007 Supplement, 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:

(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 burdens 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; and

(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.

new text begin This subdivision does not apply to parcel delivery drivers who deliver shipments
less than 250 pounds per parcel.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2008.
new text end

Sec. 2. new text begin UNEMPLOYMENT COMPENSATION AUDITS.
new text end

new text begin The commissioner of employment and economic development shall conduct
sufficient audits of trucking industry employers to determine if there is a pattern of
improper classification of owner-operators as independent contractors. The commissioner
shall, in addition to any other audits, target audit companies that have been found by
courts and regulators in other jurisdictions to have improperly classified owner-operators
as independent contractors either in connection with unemployment compensation laws
or other laws.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2008, and expires June
30, 2010.
new text end