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July 3, 2024 Last Edit: June 5, 2025
2024 law could bring big changes to your workforce over the next year
New Minnesota Independent Contractor Rule Penalties Taking Effect
- Compensatory damages to the worker, such as the difference between what the worker would’ve been paid under the applicable minimum wage, overtime owed to the worker as an employee, shift differentials, vacation and sick pay, health insurance, the value of other employee benefits, and Unemployment Insurance, Social Security, and Medicare taxes.
- A penalty of up to $10,000 per person for the failure to properly classify a worker under the applicable unemployment insurance or workers’ compensation test.
- A penalty of up to $10,000 for each failure to follow applicable local, state, or federal laws governing worker classification.
- A penalty of $1,000 for each instance of obstructing DLI investigations into alleged worker misclassification violations.
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