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. Personal Liability of Employers for Misclassification of Employees Effective July 1, 2024 Employers and their officers or agents who: • Fail to classify or represent or treat an individual who Is an employee as an employee under applicable law; • Fail to report a person as an employee when required by applicable law; • Require or request (emphasis added) an employee to misrepresent or misclassify the employee as a non-employee including as an independent contractor are subject to monetary penalties of up to $10,000 for each misclassification and each violation, penalties of up to $1,000 for each person who fails to cooperate with or obstructs an investigation into violations of the law. Compensatory damages to misclassified individuals may also be available.
INDEPENDENT CONTRACTORS IN THE TRUCKING AND MESSENGER/COURIER INDUSTRIES
Minn. Stat. § 176.043, lays out the criteria for when an operator in the trucking and messenger/ courier industry is considered an employee or an independent contractor. There are seven factors that must all be present for a worker to be considered an independent contractor. Some of the factors include when the individual: • owns the equipment or holds it under a bona fide lease agreement; • is responsible for the equipment’s maintenance; • is responsible for the operating costs; • is responsible for supplying the necessary personal services to operate the equipment; • substantially controls the means and manner of the service performance; and • enters into a written contract specifying that the relationship is one of an independent contractor and not that of an employee. FURTHER INFORMATION In addition to consulting a professional advisor, more detailed information on “Who is an Employee” for various purposes may be obtained from the following sources and at the addresses and telephone numbers listed in the Resource Directory section of this Guide. See also the section of this Guide titled “Checklist for Hiring an Employee.” • Federal income, withholding and FICA (Social Security and Medicare) tax: Publication 15 (Circular E) Employer’s Tax Guide , Publication 15-A, Employer’s Supplemental Tax Guide
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