Subject to subdivision 2, a person who creates or executes any fraudulent scheme, artifice, or device to enable the person to execute work without being responsible to the worker under this chapter, is deemed an "employer" and is subject to the liabilities which this chapter imposes on employers.
Subdivision 1 does not apply to an owner who in good faith lets a contract to a contractor. In such case, the contractor or subcontractor is deemed the "employer."
A person shall not be deemed a contractor or subcontractor where:
(1) the person performs work upon another's premises, with the other's tools or appliances, and under the other's direction; or
(2) the person does what is commonly called "piece work"; or
(3) in any way the system of employment merely provides a method of fixing the worker's wages.
Where compensation is claimed against a person under the terms of this section, the compensation shall be calculated with reference to the wages the worker was receiving at the time of the injury or death from the person by whom the worker was immediately employed.
1953 c 755 s 27; 1986 c 444