Task force will address how independent contractors are determined.
On September 7, Minnesota Attorney General Keith Ellison announced a new task force to investigate “worker misclassification,” the practice of illegally classifying workers as independent contractors instead of employees to avoid financial and administrative burden.
This task force consists of 15 appointees named by Ellison. Among the appointees are:
– three labor union employees
– three officials from Gov. Walz’s administration
– two academics
– two people from leftwing activist groups
– one DFL state senator
– one DFL state representative
– one former DFL political candidate
Minnesota currently has a nine-factor test for determining whether someone qualifies as an independent contractor. The test focuses on elements such as the existence of a separate business structure, who bears the project’s cost and risk, and the regularity of work performed by the independent contractor for the business.
Trade unions have long sought steeper penalties for “misclassification” and tougher restrictions on the type of work that qualifies for independent contractor status. Among the legislative proposals that could emerge from Ellison’s task force include moving Minnesota to a California-Style “ABC test.”
California’s test has been criticized as the most restrictive in the country, which makes it difficult to perform work as an independent contractor and creates significant legal and financial liability for businesses who seek to contract for work.
NFIB will continue to monitor the task force’s activity and will vehemently oppose any burdensome or unfair restrictions on the ability to perform or procure work as an independent contractor.
If you have concerns about this issue, please contact NFIB Minnesota State Director John Reynolds at [email protected] or 651-293-1283.
