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Understanding worker misclassification
Worker misclassification occurs when an employer incorrectly labels employees as independent contractors. Misclassified workers often do not receive:
• minimum wages;
• overtime pay;
• earned sick and safe time;
• unemployment benefits;
• workers' compensation coverage;
• pregnancy and parental leave; and
• other workplace protections that properly classified employees are entitled to under the law.
Updated misclassification law impacting the construction industry
On March 1, 2025, the independent contractor test changed from nine to 14 requirements. While many of the 14 requirements are similar to the earlier version of the law, contractors should review the updates to ensure compliance.
Prevailing wages explained
Prevailing wage is the minimum hourly wage and benefits employers must pay workers on construction and public works projects funded by state dollars. If you are working on these types of projects and want to learn more, sign up for this webinar.
• When: April 30, 9 to 10 a.m.
• Register: dli.mn.gov/events
Test your knowledge: Earned sick and safe time (ESST)
Take this quick quiz to see how much you know about earned sick and safe time. Find more information about ESST online or contact us at 651-284-5075 or esst.dli@state.mn.us.
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