11/07/2018

When is a Person an Employee?

Minnesota is a strange state when it comes to determining of a person is an employee of an employer.

No less than four statutory definitions exist and they don't mirror each other.

One definition of employee is "a person who performs services for hire for an employer, provided that the services have been performed predominately within this state... The term does not include an independent contractor." Minn. Stat. Sec. 176.011. Notable about this definition is that there are no elements identifying;

  • what the pay is
  • the term of employment
  • or, the benefits.

The law fills the gap. The employee, if unspecified on compensation terms, gets paid the normal rate for employees of his position. That can be determined by employee's within the employer or other employers employed in the same industry.

The answer to avoiding unwanted employees is executing writings with the people in question, then strictly comply with the writings. If you don't comply, Minnesota law will override your writing and turn your non-employee into an employee. At that juncture you, the employer, are looking at withholding obligations, workers' compensation issues, and other consequences.

The material contained herein is provided for informational purposes only and is not legal advice, nor is it a substitute for obtaining legal advice from an attorney. Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney. All information contained in links are the property of the linked site.

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