2. It owns, rents, or leases equipment, tools, vehicles, materials, supplies, office space, or other facilities used to provide or perform building construction or improvement services. 3. It provides or offers to provide similar building construction services to multiple persons or the general public. 4. It complies with applicable tax identification, reporting, and filing obligations (federal employer identification number, Minnesota tax ID, 1099 forms, business or self‑employment tax returns, and W‑9 forms, as required). 5. It is in good standing under Minnesota law, if applicable. 6. It has a Minnesota unemployment insurance account, if required. 7. It has workers’ compensation coverage, if required. 8. It holds all required business licenses, registrations, and certifications. 9. It operates under a written contract, signed and dated by both parties (by a specified time), that identifies the services, sets compensation on a per‑job/commission/ competitive‑bid basis (not hourly or salary), and satisfies detailed timing and content requirements. 10. It submits invoices and receives payments in the name of the business entity (not in cash). 11. The written agreement gives the business entity control over how the specific services are provided, and, in practice, the business entity exercises that control. 12. The business entity incurs the main expenses and costs related to providing or performing the services. 13. The business entity is responsible for completing the services and is contractually responsible for failure to complete them. 14. The business entity may realize additional profit or suffer a loss based on whether its costs and expenses are less than or greater than the compensation under the agreement. If any of these requirements is not met, the individual will be treated as an employee for purposes covered by this law. Personal liability of employers for misclassification of employees Effective July 1, 2024, Minnesota law imposes personal liability and significant penalties on employers and their officers or agents who: • Fail to classify or treat an individual who is an employee as an employee under applicable law. • Fail to report a person as an employee when required. • Require or request an employee to misrepresent or misclassify themselves as a non‑employee, including as an independent contractor.
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