The National Federation of Independent Businesses has joined a coalition of business organizations in filing suit to challenge Minnesota’s new 14-point independent contractor test.
The suit, filed in Minnesota state court, said the test passed in 2024 as part of the state’s Jumbo Omnibus Bill, H.F. 5247, imposes extreme financial and criminal penalties for even well-meaning small businesses if they categorize workers wrong.
“The strict and sweeping changes to Minnesota’s independent contractor classification laws that were enacted as part of the monstrous 2024 Jumbo Omnibus Bill have left Minnesota’s small business community in an impossible position,” Jon Boesche, NFIB’s Minnesota State Director said. “The level of responsibility that this statute places on small businesses is preposterous. They can either do their best to comply with this confusing regulatory scheme and face crushing monetary penalties for good-faith classification mistakes, or they can forsake the use of independent contractors altogether. Neither of these options are viable.”
According to the lawsuit, the changes to the contractor test violate the Minnesota state Constitution. NFIB contends that the bill violates what is known as the Single Subject and Title Clause, because it includes many different subjects and has no clear title. Because of that, the organizations claim that the independent contractor statute is unlawful and that the courts should prevent it from being enforced.
The lawsuit was filed with the Minnesota Chapter of Associated Builders and Contractors, Inc. (MNABC), Builders Association of Minnesota, and J&M Consulting, LLC.