Here are a few fun facts about Minnesota:
- The official state beverage is milk
- The official state bee is the rusty patched bumblebee
- The official state muffin is blueberry
Who knew the blueberry muffin lobby held such sway?
A less fun facts about Minnesota is that the state has made it really hard to be an independent contractor in the construction industry.
In 2024, the state legislature amended its independent contractor classification law to impose a 14-part test. In reality, it’s a 27-part test because some of the parts have mandatory subparts.
If you’re trying to engage an independent contractor in the construction industry in Minnesota, be extra careful. Construction includes commercial and residential improvement but excludes most landscaping services.
A collection of trade groups challenged the law, arguing that it was unconstitutionally vague and that its penalties (compensatory damages plus up to $10,000 per violation) were excessive. They sought a preliminary injunction to suspend the law while they could mount a more substantive challenge.
A district court denied the motion, and then last month the Eighth Circuit Court of Appeals affirmed. The new test therefore remains in place. The Eighth Circuit expressed skepticism about each of the trade groups’ arguments and ruled that they were unlikely to succeed on the merits.
This case is a reminder that the independent contractor tests vary widely. There are different tests for different laws in different states and even within different industries.
Companies using independent contractors should check the laws of their state and industry before assuming that their contract will be sufficient to support contractor status.
A miss here could be painful. Like the sting of a rusty patched bumblebee. If that kind even stings. But for today, let’s assume it stings. And stings hard.
© 2025 Todd Lebowitz, posted on WhoIsMyEmployee.com, Exploring Issues of Independent Contractor Misclassification and Joint Employment. All rights reserved.
