268.065 LIABILITY OF AMOUNTS DUE FROM SUBCONTRACTORS AND
EMPLOYEE LEASING FIRMS.
Subdivision 1. Subcontractors.
A contractor who contracts with any subcontractor must
guarantee the payment of all amounts that are due or become due from the subcontractor with
respect to taxable wages paid on the contract by:
(1) withholding sufficient money on the contract; or
(2) requiring the subcontractor to provide a sufficient bond guaranteeing the payment of
all amounts that may become due.
The contractor may make a request for verification that the subcontractor has paid the taxes
due 60 calendar days after the due date for filing the wage detail report that includes the final
wages paid for employment performed under the contract. If the subcontractor has paid the
amounts due for the period covered by the contract, the commissioner may release the contractor
from its liability.
The words "contractor" and "subcontractor" include individuals, partnerships, firms, or
corporations, or other association of persons engaged in the construction industry.
Subd. 2. Employee leasing company, professional employer organization, or similar
(a) A person whose work force consists of 50 percent or more of workers provided by
an employee leasing company, professional employer organization, or similar person for a fee,
is jointly and severally liable for the unpaid amounts that are due under this chapter or section
on the wages paid on the contract with the employee leasing company, professional
employer organization, or similar person.
(b) This subdivision applies to, but is not limited to, persons registered under section
but does not apply to agreements with persons that obtain an exemption from registration under
79.255, subdivision 9
Subd. 3. Determination of liability.
The commissioner shall make a determination as to
the liability under this section. The determination is final unless the contractor or person found
to be liable files an appeal within 20 calendar days after being sent the determination by mail
or electronic transmission. Proceedings on the appeal are conducted in accordance with section
History: 1987 c 385 s 36; 1989 c 65 s 14; 1995 c 54 s 19; 1997 C 66 S 79,80; 1998 c 265 s
44; 1999 c 107 s 36; 2004 c 183 s 45,46; 2005 c 112 art 1 s 10; 2007 c 128 art 2 s 4; art 6 s 45