Twin Cities, Minneapolis, MN

Minn. Stat. 181.723 Misclassification of Construction Employees - What is everyone doing to comply?

  • 1.  Minn. Stat. 181.723 Misclassification of Construction Employees - What is everyone doing to comply?

    Posted 02-14-2025 09:16

    Hello-

    My company is working through a plan to ensure compliance with the new law that takes effect on March 1, 2025. While we have most of it figured out, there are a few new requirements that we are not 100% sure what to do about.

    -Subd. 4 item 6: The requirement to verify our subcontractor has unemployment insurance is not something that is publicly available. Does anyone have any thoughts on an appropriate process? Our initial thought is to require the sub to provide us with their unemployment insurance account number, but then we would have no way to check if it is active and in good standing.

    -Sudb. 4 item 4(iii): Is it reasonable to ask for a copy of a 1099 from a new subcontractor that requires 1099s and we have never paid? 

    -Subd. 4 item 4(iv): How can we show proof of a subcontractor filing tax returns? We want to avoid having to ask for copies.

    The last two items above are definitely the hardest part to figure out without guidance from DOLI.

    Any suggestions or insight into what other companies are doing would be greatly appreciated!



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    Mari Gronquist
    Senior Financial Analyst
    Kraus-Anderson Construction Company
    Minneapolis MN
    mari.gronquist@krausanderson.com
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