1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:17am
A bill for an act
relating to employment; regulating the employment status of certain truckers
for the purpose of unemployment compensation and workers' compensation;
amending Minnesota Statutes 2008, section 268.035, subdivision 25b; proposing
coding for new law in Minnesota Statutes, chapter 176; repealing Minnesota
Rules, parts 5224.0290; 5224.0291; 5224.0292.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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In the trucking and messenger/courier industries, an operator of a vehicle that
is licensed and registered as a truck, tractor, truck-tractor, or messenger/courier by a
governmental motor vehicle regulatory agency is an employee unless each of the following
factors are present, and if each factor is present, the operator is an independent contractor:
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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 is responsible for the operating costs, including fuel, repairs,
supplies, vehicle insurance, and personal expenses. The individual may be paid the
carrier's fuel surcharge and incidental costs, including but not limited to, tolls, permits,
and lumper fees;
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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 substantially controls the means and manner of performing the
services, in conformance with regulatory requirements 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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Minnesota Statutes 2008, section 268.035, subdivision 25b, is amended to read:
In the trucking deleted text begin industrydeleted text end new text begin
or messenger/courier industriesnew text end , an deleted text begin owner-operatordeleted text end new text begin operator new text end of a vehicle that is licensed
and registered as a truck, tractor, deleted text begin ordeleted text end truck-tractornew text begin , or messenger/courier new text end by a governmental
motor vehicle regulatory agency is an deleted text begin independent contractor, and is not considered an
employee, while performing services in the operation of the truck only ifdeleted text end new text begin employee, unless
new text end each of the following factors is presentnew text begin and if each factor is present, the operator is an
independent contractornew text end :
(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 deleted text begin bears the principal burdens ofdeleted text end new text begin is responsible for new text end the operating
costs, including fuel, repairs, supplies, vehicle insurance, and personal expenses deleted text begin while
on the roaddeleted text end new text begin . The individual may be paid the carrier's fuel surcharge and incidental costs,
including but not limited to, tolls, permits, and lumper feesnew text end ;
(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
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(6) the individual enters into a written contract that new text begin includes billing and payment
procedures, and new text end specifies the relationship to be that of an independent contractor and not
that of an employeenew text begin ; and
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new text begin (7) the individual substantially controls the means and manner of performing the
services, in conformance with regulatory requirements and specifications of the shippernew text end .
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Minnesota Rules, parts 5224.0290; 5224.0291; and 5224.0292,
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are repealed.
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