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SF3202 (Legislative Session 94 (2025-2026))

Rebuttable presumption that in individual is an employee establishment

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to clarify and establish a legal presumption regarding the employment status of individuals in Minnesota, focusing on the determination of whether someone is an employee or an independent contractor.

Main Provisions

  1. Rebuttable Presumption of Employment:

    • The bill introduces a rebuttable presumption that individuals are classified as employees unless this presumption is overturned by specific evidence or criteria, especially pertinent under workers' compensation and unemployment insurance laws and rules.

  2. Specific to Trucking and Courier Industries:

    • Within the trucking and messenger/courier industries, there is a presumption that drivers are employees. An operator can be classified as an independent contractor only if they meet several specific conditions:
      • Ownership or leasing of the vehicle.
      • Responsibility for maintenance and operating costs including fuel, reparations, and insurance.
      • Independent control over the work performed and compensation based on work outcomes rather than time spent.
      • Existence of a written contract stating the nature of the relationship as that of an independent contractor.
      • Control over how services are provided, in line with regulations and client specifications.

Significant Changes to Existing Law

  • Shift in Default Employment Status:

    • The bill changes the default assumption regarding workers' status to employee, which reverses the burden of proof onto the employer to demonstrate that an individual is an independent contractor.

  • Clarification for Specific Industries:

    • It offers clear guidelines for when drivers in the trucking and courier industries can be considered independent contractors, thus providing a more structured framework compared to previous regulation.

Relevant Terms

rebuttable presumption, employee, independent contractor, trucking industry, courier industry, employment relationship, compensation, fuel surcharge, written contract, vehicle maintenance, operating costs, workers’ compensation, unemployment insurance.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 31, 2025SenateFloorActionIntroduction and first reading
March 31, 2025SenateFloorActionReferred toJobs and Economic Development

Citations

 
[
  {
    "analysis": {
      "added": [
        "Introduces a rebuttable presumption that an individual is an employee unless overturned by certain laws."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the determination of employment relationship under section 181.722, subdivision 3.",
      "modified": [
        "Updates the criteria and circumstances under which employment status is presumed."
      ]
    },
    "citation": "181.722",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "Outlines factors that determine when an operator is considered an independent contractor."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill amends the classification of operators in the trucking and messenger courier industries under section 268.035, subdivision 25b.",
      "modified": [
        "Clarifies the rebuttable presumption of employment versus independent contractor status."
      ]
    },
    "citation": "268.035",
    "subdivision": "subdivision 25b"
  }
]

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