Recent Update on Misclassification Lawsuit
On March 5th, the Court DENIED the Motion for the Temporary Restraining Order and a Preliminary Injunction on the Misclassification Lawsuit. This means that the potential stay (temporary pause) mentioned in our previous article will not happen.
So Now What?
The full law is now in effect as of March 1st. This includes the 14-point independent contractor test. This also includes the other items that would not have been impacted by the hearing, including other reporting requirements and the commissioner’s expanded “stop work order” powers. In addition to the stop work order across all of a contractor’s jobs, the commissioner is able to impose hefty penalties of up to $10,000 per violation and $1,000 a day for failure to provide documents.
Be prepared for March to “come in like a lion” with this law now in full swing. It is not too late to start working towards compliance with this law.
You can read what the state defines as misclassification here: Worker misclassification | Minnesota Department of Labor and Industry
For more information on what is included in the law that went into effect on March 1st, check out our previous posts.
Misclassification Law Transforms the MN Construction Industry
Encouraging Developments for MN Independent Contractors – NSLG
If you need assistance with this law or assistance with your construction business, please reach out.
