Minn. Stat. § 181.723
MISCLASSIFICATION OF CONSTRUCTION EMPLOYEES.
Redline — January 1, 2011 → current.View current text →
Current — January 1, 2024
As of January 1, 2011
Subdivision 1. Definitions.
Subdivision 1. Definitions.
The definitions in this subdivision apply to this section.
The definitions in this subdivision apply to this section.
(a) "Person" means any individual, limited liability corporation, corporation, partnership, incorporated or unincorporated association, sole proprietorship, joint stock company, or any other legal or commercial entity.
(a) "Person" means any individual, sole proprietor, limited liability company, limited liability partnership, corporation, partnership, incorporated or unincorporated association, joint stock company, or any other legal or commercial entity.
(b) "Department" means the Department of Labor and Industry.
(b) "Department" means the Department of Labor and Industry.
(c) "Commissioner" means the commissioner of labor and industry or a duly designated representative of the commissioner who is either an employee of the Department of Labor and Industry or person working under contract with the Department of Labor and Industry.
(c) "Commissioner" means the commissioner of labor and industry or a duly designated representative of the commissioner who is either an employee of the Department of Labor and Industry or person working under contract with the Department of Labor and Industry.
(d) "Individual" means a human being.
(d) "Individual" means a human being.
(e) "Day" means calendar day unless otherwise provided.
(e) "Day" means calendar day unless otherwise provided.
(f) "Knowingly" means knew or could have known with the exercise of reasonable diligence.
(f) "Knowingly" means knew or could have known with the exercise of reasonable diligence.
(g) "Document" or "documents" includes papers; books; records; memoranda; data; contracts; drawings; graphs; charts; photographs; digital, video, and audio recordings; records; accounts; files; statements; letters; e-mails; invoices; bills; notes; and calendars maintained in any form or manner.
(g) "Business entity" means a person as that term is defined in paragraph (a), except the term does not include an individual.
(h) "Independent contractor" means a business entity that meets all the requirements under subdivision 4, paragraph (a).
Subd. 2. Limited application.
Subd. 2. Limited application.
This section only applies to individuals performing public or private sector commercial or residential building construction or improvement services. Building construction and improvement services do not include (1) the manufacture, supply, or sale of products, materials, or merchandise; (2) landscaping services for the maintenance or removal of existing plants, shrubs, trees, and other vegetation, whether or not the services are provided as part of a contract for the building construction or improvement services; and (3) all other landscaping services, unless the other landscaping services are provided as part of a contract for the building construction or improvement services.
This section only applies to persons providing or performing building construction or improvement services. Building construction or improvement services include all public or private sector commercial or residential building construction or improvement services except for: (1) the manufacture, supply, or sale of products, materials, or merchandise; (2) landscaping services for the maintenance or removal of existing plants, shrubs, trees, and other vegetation, whether or not the services are provided as part of a contract for the building construction or improvement services; and (3) all other landscaping services, unless the other landscaping services are provided as part of a contract for the building construction or improvement services.
Subd. 3. Employee-employer relationship.
Subd. 3. Employee-employer relationship.
Except as provided in subdivision 4, for purposes of chapters 176, 177, 181A, 182, and 268, as of January 1, 2009, an individual who performs services for a person that are in the course of the person's trade, business, profession, or occupation is an employee of that person and that person is an employer of the individual.
Except as provided in subdivision 4, for purposes of chapters 176, 177, 181, 181A, 182, 268, and 326B, an individual who provides or performs building construction or improvement services for a person that are in the course of the person's trade, business, profession, or occupation is an employee of that person and that person is an employer of the individual.
Subd. 4. Independent contractor.
Subd. 4. Independent contractor.
An individual is an independent contractor and not an employee of the person for whom the individual is performing services in the course of the person's trade, business, profession, or occupation only if (1) the individual holds a current independent contractor exemption certificate issued by the commissioner; and (2) the individual is performing services for the person under the independent contractor exemption certificate as provided in subdivision 6. The requirements in clauses (1) and (2) must be met in order to qualify as an independent contractor and not as an employee of the person for whom the individual is performing services in the course of the person's trade, business, profession, or occupation.
(a) An individual is an independent contractor and not an employee of the person for whom the individual is providing or performing services in the course of the person's trade, business, profession, or occupation only if the individual is operating as a business entity that meets all of the following requirements at the time the services were provided or performed: (1) was established and maintained separately from and independently of the person for whom the services were provided or performed; (2) owns, rents, or leases equipment, tools, vehicles, materials, supplies, office space, or other facilities that are used by the business entity to provide or perform building construction or improvement services; (3) provides or performs, or offers to provide or perform, the same or similar building construction or improvement services for multiple persons or the general public; (4) is in compliance with all of the following:
Subd. 5. Application.
To obtain an independent contractor exemption certificate, the individual must submit, in the manner prescribed by the commissioner, a complete application and the certificate fee required under subdivision 14.
(a) A complete application must include all of the following information:
(1) the individual's full name;
(2) the individual's residence address and telephone number;
(3) the individual's business name, address, and telephone number;
(4) the services for which the individual is seeking an independent contractor exemption certificate;
(5) the individual's Social Security number;
(6) the individual's or the individual's business federal employer identification number, if a number has been issued to the individual or the individual's business;
(7) any information or documentation that the commissioner requires by rule that will assist the department in determining whether to grant or deny the individual's application; and
(8) the individual's sworn statement that the individual meets all of the following conditions:
(i) maintains a separate business with the individual's own office, equipment, materials, and other facilities;
(ii) holds or has applied for a federal employer identification number or has filed business or self-employment income tax returns with the federal Internal Revenue Service if the person has performed services in the previous year for which the individual is seeking the independent contractor exemption certificate;
(iii) operates under contracts to perform specific services for specific amounts of money and under which the individual controls the means of performing the services;
(iv) incurs the main expenses related to the service that the individual performs under contract;
(v) is responsible for the satisfactory completion of services that the individual contracts to perform and is liable for a failure to complete the service;
(vi) receives compensation for service performed under a contract on a commission or per-job or competitive bid basis and not on any other basis;
(vii) may realize a profit or suffer a loss under contracts to perform service;
(viii) has continuing or recurring business liabilities or obligations; and
(ix) the success or failure of the individual's business depends on the relationship of business receipts to expenditures.
(b) Individuals who are applying for or renewing a residential building contractor or residential remodeler license under sections 326B.197, 326B.802, 326B.805, 326B.81, 326B.815, 326B.821 to 326B.86, 326B.87 to 326B.885 , and 327B.041 , and any rules promulgated pursuant thereto, may simultaneously apply for or renew an independent contractor exemption certificate. The commissioner shall create an application form that allows for the simultaneous application for both a residential building contractor or residential remodeler license and an independent contractor exemption certificate. If individuals simultaneously apply for or renew a residential building contractor or residential remodeler license and an independent contractor exemption certificate using the form created by the commissioner, individuals shall only be required to provide, in addition to the information required by section 326B.83 and rules promulgated pursuant thereto, the sworn statement required by paragraph (a), clause (8), and any additional information required by this subdivision that is not also required by section 326B.83 and any rules promulgated thereto. An independent contractor exemption certificate that is in effect before March 1, 2009, shall remain in effect until March 1, 2013, unless revoked by the commissioner or canceled by the individual.
(c) Within 30 days of receiving a complete application and the certificate fee, the commissioner must either grant or deny the application. The commissioner may deny an application for an independent contractor exemption certificate if the individual has not submitted a complete application and certificate fee or if the individual does not meet all of the conditions for holding the independent contractor exemption certificate. The commissioner may revoke an independent contractor exemption certificate if the commissioner determines that the individual no longer meets all of the conditions for holding the independent contractor exemption certificate, commits any of the actions set out in subdivision 7, or fails to cooperate with a department investigation into the continued validity of the individual's certificate. Once issued, an independent contractor exemption certificate remains in effect for four years unless:
(1) revoked by the commissioner; or
(2) canceled by the individual.
(d) If the department denies an individual's original or renewal application for an independent contractor exemption certificate or revokes an independent contractor exemption certificate, the commissioner shall issue to the individual an order denying or revoking the certificate. The commissioner may issue an administrative penalty order to an individual or person who commits any of the actions set out in subdivision 7. The commissioner may file and enforce the unpaid portion of a penalty as a judgment in district court without further notice or additional proceedings.
(e) An individual or person to whom the commissioner issues an order under paragraph (d) shall have 30 days after service of the order to request a hearing. The request for hearing must be in writing and must be served on or faxed to the commissioner at the address or facsimile number specified in the order by the 30th day after service of the order. If the individual does not request a hearing or if the individual's request for a hearing is not served on or faxed to the commissioner by the 30th day after service of the order, the order shall become a final order of the commissioner and will not be subject to review by any court or agency. The date on which a request for hearing is served by mail shall be the postmark date on the envelope in which the request for hearing is mailed. If the individual serves or faxes a timely request for hearing, the hearing shall be a contested case hearing and shall be held in accordance with chapter 14.
Subd. 6. Performing services under exemption certificate.
An individual is performing services for a person under an independent contractor exemption certificate if:
(a) the individual is performing services listed on the individual's independent contractor exemption certificate; and
(b) at the time the individual is performing services listed on the individual's independent contractor exemption certificate, the individual meets all of the following conditions:
(1) maintains a separate business with the individual's own office, equipment, materials, and other facilities;
(2) holds or has applied for a federal employer identification number or has filed business or self-employment income tax returns with the federal Internal Revenue Service if the individual performed services in the previous year for which the individual has the independent contractor exemption certificate;
(3) is operating under contract to perform the specific services for the person for specific amounts of money and under which the individual controls the means of performing the services;
(4) is incurring the main expenses related to the services that the individual is performing for the person under the contract;
(5) is responsible for the satisfactory completion of the services that the individual has contracted to perform for the person and is liable for a failure to complete the services;
(6) receives compensation from the person for the services performed under the contract on a commission or per-job or competitive bid basis and not on any other basis;
(7) may realize a profit or suffers a loss under the contract to perform services for the person;
(8) has continuing or recurring business liabilities or obligations; and
(9) the success or failure of the individual's business depends on the relationship of business receipts to expenditures.
Subd. 7. Prohibited activities.
(a) An individual shall not:
(1) perform work as an independent contractor who meets the qualifications under subdivision 6 without first obtaining from the department an independent contractor exemption certificate;
(2) perform work as an independent contractor when the department has denied or revoked the individual's independent contractor exemption certificate;
(3) transfer to another individual or allow another individual to use the individual's independent contractor exemption certificate;
(4) alter or falsify an independent contractor exemption certificate;
(5) misrepresent the individual's status as an independent contractor; or
(6) make a false material statement, representation, or certification; omit material information; or alter, conceal, or fail to file a document required by this section or any rule promulgated by the commissioner under rulemaking authority set out in this section.
(b) A person shall not:
(1) require an individual through coercion, misrepresentation, or fraudulent means to adopt independent contractor status;
(2) knowingly misrepresent that an individual who has not been issued an independent contractor exemption certificate or is not performing services for the person under an independent contractor exemption certificate is an independent contractor; or
(3) make a false material statement, representation, or certification; omit material information; or alter, conceal, or fail to file a document required by this section or any rule promulgated by the commissioner under rulemaking authority set out in this section.
(c) A person for whom an individual is performing services must obtain a copy of the individual's independent contractor exemption certificate before services may commence. A copy of the independent contractor exemption certificate must be retained for five years from the date of receipt by the person for whom an individual is performing services.
Subd. 8. Remedies.
An individual or person who violates any provision of subdivision 7 is subject to a penalty to be assessed by the department of up to $5,000 for each violation. The department shall deposit penalties in the assigned risk safety account.
Subd. 9. Commissioner's powers.
(a) In order to carry out the purposes of this section, the commissioner may:
(1) administer oaths and affirmations, certify official acts, interview, question, take oral or written statements, and take depositions;
(2) request, examine, take possession of, photograph, record, and copy any documents, equipment, or materials;
(3) at a time and place indicated by the commissioner, request persons to appear before the commissioner to give testimony and produce documents, equipment, or materials;
(4) issue subpoenas to compel persons to appear before the commissioner to give testimony and produce documents, equipment, or materials; and
(5) subject to paragraph (c), with or without notice, enter without delay upon any property, public or private, for the purpose of taking any action authorized under this subdivision or the applicable law, including obtaining information or conducting inspections or investigations.
(b) Persons requested by the commissioner to give testimony or produce documents, equipment, or materials shall respond within the time and in the manner specified by the commissioner. If no time to respond is specified in the request, then a response shall be submitted within 30 days of the commissioner's service of the request.
(c) Upon the refusal or anticipated refusal of a property owner, lessee, property owner's representative, or lessee's representative to permit the commissioner's entry onto property as provided in paragraph (a), the commissioner may apply for an administrative inspection order in the Ramsey County District Court or, at the commissioner's discretion, in the district court in the county in which the property is located. The commissioner may anticipate that a property owner or lessee will refuse entry if the property owner, lessee, property owner's representative, or lessee's representative has refused to permit entry on a prior occasion or has informed the commissioner that entry will be refused. Upon showing of administrative probable cause by the commissioner, the district court shall issue an administrative inspection order that compels the property owner or lessee to permit the commissioner to enter the property for the purposes specified in paragraph (a).
(d) Upon the application of the commissioner, a district court shall treat the failure of any person to obey a subpoena lawfully issued by the commissioner under this subdivision as a contempt of court.
Subd. 10. Notice requirements.
Unless otherwise specified, service of a document on a person under this section may be by mail, by personal service, or in accordance with any consent to service filed with the commissioner. Service by mail shall be accomplished in the manner provided in Minnesota Rules, part 1400.5550 , subpart 2. Personal service shall be accomplished in the manner provided in Minnesota Rules, part 1400.5550 , subpart 3.
Subd. 11. Facsimile; timely service.
When this section permits a request for hearing to be served by facsimile on the commissioner, the facsimile shall not exceed 15 pages in length. The request shall be considered timely served if the facsimile is received by the commissioner, at the facsimile number identified by the commissioner in the order, no later than 4:30 p.m. central time on the last day permitted for faxing the request. Where the quality or authenticity of the faxed request is at issue, the commissioner may require the original request to be filed. Where the commissioner has not identified quality or authenticity of the faxed request as an issue and the request has been faxed in accordance with this subdivision, the person faxing the request does not need to file the original request with the commissioner.
Subd. 12. Time period computation.
In computing any period of time prescribed or allowed by this section, the day of the act, event, or default from which the designated period of time begins to run shall not be included. The last day of the period so computed shall be included, unless it is a Saturday, Sunday, or legal holiday, in which event the period runs until the next day which is not a Saturday, Sunday, or legal holiday.
Subd. 13. Rulemaking.
The commissioner may, in consultation with the commissioner of revenue and the commissioner of employment and economic development, adopt, amend, suspend, and repeal rules under the rulemaking provisions of chapter 14 that relate to the commissioner's responsibilities under this section. This subdivision is effective May 26, 2007.
Subd. 14. Fee.
The certificate fee for the original application and for the renewal of an independent contractor exemption certificate shall be $150.
Subd. 15. Notice to commissioner; review by commissioner of revenue.
When the commissioner has reason to believe that an individual who holds a certificate has failed to maintain all the conditions required by subdivision 6 or is not performing services for a person under the independent contractor exemption certificate, the commissioner must notify the commissioner of revenue and the commissioner of employment and economic development. Upon receipt of notification from the commissioner that an individual who holds a certificate has failed to maintain all the conditions required by subdivision 6 or is not performing services for a person under the independent contractor exemption certificate, the commissioner of revenue must review the information returns required under section 6041A of the Internal Revenue Code. The commissioner of revenue shall also review the submitted certification that is applicable to returns audited or investigated under section 289A.35 .
Subd. 16. Data classified.
Data in applications for an independent contractor exemption certificate and any required documentation submitted to the commissioner are private data on individuals as defined in section 13.02 . Data in exemption certificates issued by the commissioner are public data. Data that document a revocation or cancellation of an exemption certificate are public data. Upon request of the Department of Revenue or Department of Employment and Economic Development, the commissioner may release to the requesting department data classified as private under this subdivision or investigative data that are not public under section 13.39 that relate to the issuance or denial of applications or revocations of certificates.
Subd. 17. Advisory task force on employee misclassification.
(a) The commissioner of the Department of Labor and Industry shall appoint an advisory task force on employee misclassification and "off-the-books" payment of workers in the construction industry. The advisory task force shall consist of the following members:
(1) the commissioner of the Department of Labor and Industry or designee;
(2) the commissioner of the Department of Employment and Economic Development or designee;
(3) the commissioner of the Department of Revenue or designee;
(4) the attorney general or designee;
(5) a representative appointed by the Minnesota County Attorneys Association;
(6) two members who are members of a labor organization that represents members who perform public or private sector commercial or residential building construction or improvement services;
(7) one member who is a general contractor or a representative of general contractors that performs public or private sector commercial building construction or improvement services;
(8) one member who is a general contractor or a representative of general contractors that performs public or private sector residential building construction or improvement services;
(9) one member who is a subcontractor or a representative of subcontractors that performs public or private sector commercial building construction or improvement services;
(10) one member who is a subcontractor or a representative of subcontractors that performs public or private sector residential building construction or improvement services; and
(11) up to three additional members who perform public or private sector commercial or residential building and construction or improvement services including one member who is an independent contractor with a current independent contractor certificate; one member who is a limited liability corporation; and one member who is an employee.
The commissioner of the Department of Labor and Industry or designee shall serve as the advisory task force chair. The advisory task force shall meet on a regular basis.
(b) The advisory task force shall have the following duties:
(1) advise the commissioner on the development, implementation, and coordination of enforcement activities, including information sharing and joint investigation and prosecution of persons who violate laws under the jurisdiction of the Department of Labor and Industry, Department of Employment and Economic Development, and the Department of Revenue; and
(2) advise the commissioner on the development and adoption of necessary legislation, regulations, policies, and procedures.
(c) The advisory task force shall expire and the terms, compensation, and removal of members shall be as provided in section 15.059, subdivision 6 .
(d) The advisory task force shall, prior to its expiration, report to the legislature a summary of the advice it provided to the commissioner.
(i) holds a federal employer identification number if required by federal law;
(ii) holds a Minnesota tax identification number if required by Minnesota law;
(iii) has received and retained 1099 forms for income received for building construction or improvement services provided or performed, if required by Minnesota or federal law;
(iv) has filed business or self-employment income tax returns, including estimated tax filings, with the federal Internal Revenue Service and the Department of Revenue, as the business entity or as a self-employed individual reporting income earned, for providing or performing building construction or improvement services, if any, in the previous 12 months; and
(v) has completed and provided a W-9 federal income tax form to the person for whom the services were provided or performed if required by federal law;
(5) is in good standing as defined by section 5.26 , if applicable;
(6) has a Minnesota unemployment insurance account if required by chapter 268;
(7) has obtained required workers' compensation insurance coverage if required by chapter 176;
(8) holds current business licenses, registrations, and certifications if required by chapter 326B and sections 327.31 to 327.36 ;
(9) is operating under a written contract to provide or perform the specific services for the person that:
(i) is signed and dated by both an authorized representative of the business entity and of the person for whom the services are being provided or performed;
(ii) is fully executed no later than 30 days after the date work commences;
(iii) identifies the specific services to be provided or performed under the contract;
(iv) provides for compensation from the person for the services provided or performed under the contract on a commission or per-job or competitive bid basis and not on any other basis; and
(v) the requirements of item (ii) shall not apply to change orders;
(10) submits invoices and receives payments for completion of the specific services provided or performed under the written proposal, contract, or change order in the name of the business entity. Payments made in cash do not meet this requirement;
(11) the terms of the written proposal, contract, or change order provide the business entity control over the means of providing or performing the specific services, and the business entity in fact controls the provision or performance of the specific services;
(12) incurs the main expenses and costs related to providing or performing the specific services under the written proposal, contract, or change order;
(13) is responsible for the completion of the specific services to be provided or performed under the written proposal, contract, or change order and is responsible, as provided under the written proposal, contract, or change order, for failure to complete the specific services; and
(14) may realize additional profit or suffer a loss, if costs and expenses to provide or perform the specific services under the written proposal, contract, or change order are less than or greater than the compensation provided under the written proposal, contract, or change order.
(b)(1) Any individual providing or performing the services as or for a business entity is an employee of the person who engaged the business entity, unless the business entity meets all of the requirements under subdivision 4, paragraph (a).
(2) Any individual who is determined to be the person's employee is acting as an agent of and in the interest of the person when engaging any other individual or business entity to provide or perform any portion of the services that the business entity was engaged by the person to provide or perform.
(3) Any individual engaged by an employee of the person, at any tier under the person, is also the person's employee, unless the individual is providing or performing the services as or for a business entity that meets the requirements of subdivision 4, paragraph (a).
(4) Clauses (1) to (3) do not create an employee-employer relationship between a person and an individual if: (i) there is an intervening business entity in the contractual chain between the person and the individual that meets the requirements of subdivision 4, paragraph (a); or (ii) the person establishes that an intervening business entity treats and classifies the individual as an employee for purposes of, and in compliance with, chapters 176, 177, 181, 181A, 268, 268B, 270C, and 290.
[See Note.]
Subd. 4a.
MS 2012 [Renumbered 326B.701, subd 2 ]
Subd. 5.
MS 2012 [Renumbered 326B.701, subd 3 ]
Subd. 5a.
MS 2012 [Renumbered 326B.701, subd 4 ]
Subd. 6.
[Repealed, 2012 c 295 art 2 s 13 ]
Subd. 7. Prohibited activities related to independent contractor status.
(a) The prohibited activities in paragraphs (b) and (c) are in addition to the activities prohibited in sections 326B.081 to 326B.085 .
(b) An individual providing or performing building construction or improvement services shall not represent themselves as an independent contractor unless the individual is operating as a business entity that meets all the requirements of subdivision 4, paragraph (a).
(c) A person who provides or performs building construction or improvement services in the course of the person's trade, business, occupation, or profession shall not:
(1) as a condition of payment for services provided or performed, require an individual, who is an employee pursuant to this section, to register as a construction contractor under section 326B.701 , or to adopt or agree to being classified, represented, or treated as an independent contractor or form a business entity. Each instance of conditioning payment to an individual who is an employee on one of these conditions shall constitute a separate violation of this provision;
(2) fail to classify, represent, or treat an individual who is an employee pursuant to this section as an employee in accordance with the requirements of any of the chapters listed in subdivision 3. Failure to classify, represent, or treat an individual who is an employee pursuant to this section as an employee in accordance with each requirement of a chapter listed in subdivision 3 shall constitute a separate violation of this provision;
(3) fail to report or disclose to any person or to any local, state, or federal government agency an individual who is an employee pursuant to subdivision 3, as an employee when required to do so under any applicable local, state, or federal law. Each failure to report or disclose an individual as an employee shall constitute a separate violation of this provision;
(4) require or request an individual who is an employee pursuant to this section to enter into any agreement or complete any document that misclassifies, misrepresents, or treats the individual as an independent contractor or otherwise does not reflect that the individual is an employee pursuant to this section. Each agreement or completed document shall constitute a separate violation of this provision; or
(5) require an individual who is an employee under this section to register under section 326B.701 .
(d) In addition to the person providing or performing building construction or improvement services in the course of the person's trade, business, occupation, or profession, any owner, partner, principal, member, officer, or agent who engaged in any of the prohibited activities in this subdivision knowingly or repeatedly may be held individually liable.
(e) An order issued by the commissioner to a person for engaging in any of the prohibited activities in this subdivision is in effect against any successor person. A person is a successor person if the person shares three or more of the following with the person to whom the order was issued:
(1) has one or more of the same owners, members, principals, officers, or managers;
(2) performs similar work within the state of Minnesota;
(3) has one or more of the same telephone or fax numbers;
(4) has one or more of the same email addresses or websites;
(5) employs or engages substantially the same individuals to provide or perform building construction or improvement services;
(6) utilizes substantially the same vehicles, facilities, or equipment; or
(7) lists or advertises substantially the same project experience and portfolio of work.
(f) If a person who has engaged an individual to provide or perform building construction or improvement services that are in the course of the person's trade, business, profession, or occupation, classifies, represents, treats, reports, or discloses the individual as an independent contractor, the person shall maintain, for at least three years, and in a manner that may be readily produced to the commissioner upon demand, all the information and documentation upon which the person based the determination that the individual met all the requirements under subdivision 4, paragraph (a), at the time the individual was engaged and at the time the services were provided or performed.
(g) The following damages and penalties may be imposed for a violation of this section:
(1) compensatory damages to the individual the person failed to classify, represent, or treat as an employee pursuant to this section. Compensatory damages include but are not limited to the value of supplemental pay including minimum wage; overtime; shift differentials; vacation pay; sick pay; and other forms of paid time off; health insurance; life and disability insurance; retirement plans; saving plans and any other form of benefit; employer contributions to unemployment insurance; Social Security and Medicare and any costs and expenses incurred by the individual resulting from the person's failure to classify, represent, or treat the individual as an employee;
(2) a penalty of up to $10,000 for each individual the person failed to classify, represent, or treat as an employee pursuant to this section;
(3) a penalty of up to $10,000 for each violation of this subdivision; and
(4) a penalty of $1,000 for any person who delays, obstructs, or otherwise fails to cooperate with the commissioner's investigation. Each day of delay, obstruction, or failure to cooperate constitutes a separate violation.
(h) This section may be investigated and enforced under the commissioner's authority under state law.
Subd. 7a.
MS 2012 [Renumbered 326B.701, subd 5 ]
Subd. 8.
[Repealed, 2012 c 295 art 2 s 13 ]
Subd. 8a.
MS 2012 [Renumbered 326B.701, subd 6 ]
Subd. 9.
[Repealed, 2012 c 295 art 2 s 13 ]
Subd. 10.
[Repealed, 2012 c 295 art 2 s 13 ]
Subd. 10a.
MS 2012 [Renumbered 326B.701, subd 7 ]
Subd. 11.
[Repealed, 2012 c 295 art 2 s 13 ]
Subd. 12.
[Repealed, 2012 c 295 art 2 s 13 ]
Subd. 13. Rulemaking.
The commissioner may, in consultation with the commissioner of revenue and the commissioner of employment and economic development, adopt, amend, suspend, and repeal rules under the rulemaking provisions of chapter 14 that relate to the commissioner's responsibilities under this section.
Subd. 14.
[Repealed, 2012 c 295 art 2 s 13 ]
Subd. 15. Notice and review by commissioners of revenue and employment and economic development.
When the commissioner has reason to believe that a person has violated subdivision 7, the commissioner must notify the commissioner of revenue and the commissioner of employment and economic development. Upon receipt of notification from the commissioner, the commissioner of revenue must review the information returns required under section 6041A of the Internal Revenue Code. The commissioner of revenue shall also review the submitted certification that is applicable to returns audited or investigated under section 289A.35 .
Subd. 16.
MS 2012 [Renumbered 326B.701, subd 8 ]
Subd. 17.
[Repealed, 2012 c 295 art 2 s 13 ]
Official source: Minnesota Office of the Revisor of Statutes. Reproduced from public-domain Minnesota statutes; confirm against the official source for the current text. Not legal advice.