Bill > SF2306

This bill expands Minnesota's centralized work reporting system to include independent contractors, requiring payors (businesses or entities paying for services) to report their independent contractors to the state's Department of Children, Youth, and Families. The bill defines an independent contractor as a person over 18 or a single-member corporation/LLC who performs services for $600 or more per calendar year, and specifically includes gig economy workers like rideshare or food delivery drivers. Employers and payors must report new independent contractors within 20 calendar days of hiring, using methods like submitting W-9 forms, electronic media, or toll-free telecommunications. The reporting requirements do not apply to contractors expected to work less than two months with gross earnings under $250 per month. Failure to report can result in penalties, starting with a written notice of noncompliance and escalating to civil penalties of $25 per unreported contractor, or $500 per contractor if there's evidence of intentional non-reporting or conspiracy. These new requirements will become effective on January 1, 2026, giving businesses time to prepare for the expanded reporting system, which aims to improve tracking of workforce and potentially assist with child support enforcement.

Health and Social Services

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2306&ssn=0&y=2025