Minnesota companies in the construction industry are likely already familiar with the nine factors that affect the classification of workers as independent contractors. If workers in the construction industry meet all nine of those factors, they can be classified as independent contractors who are exempt from various wage and hour requirements.

The 2024 state legislative session included changes to the misclassification laws in Minnesota. Starting March 1, 2025, the independent contractor test for workers in the construction industry will change from nine factors to fourteen factors. While many of the new factors are similar to the previous versions, there are material changes that may affect your company. Additionally, new factors regarding insurance, licensure, and contract requirements may impact your worker classifications.

If your company operates in the construction industry, you should review the fourteen new factors linked above and ensure that your worker classifications are compliant with the new laws. Violations of worker misclassification laws can result in owing compensatory damages such as back pay and benefits, penalties of up to $10,000 per violation, and additional penalties for failing to cooperate with investigation.

If you have questions about worker classification or any other labor and employment matters, contact our team today (651) 439-2878.