PAUL, Minn. (March 24, 2026) – NFIB joined a coalition of business organizations in filing a lawsuit in Minnesota state court challenging the new independent contractor test that was passed in 2024 as part of the Jumbo Omnibus Bill, H.F. 5247. The statute enacts a rigorous fourteen-factor test for determining the classification of independent contractors and imposes extreme financial and criminal penalties for even well-meaning small businesses should they fail to comply.

“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,” said Jon Boesche, NFIB’s Minnesota State Director. “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.”

NFIB’s lawsuit argues that the Jumbo Omnibus Bill violates Article IV, Section 17 of the Minnesota Constitution, known as the Single Subject and Title Clause, because it includes many different subjects and has no clear title.  Because of this, we claim that the new independent contractor statute is unlawful and the courts should prevent the State from enforcing it.

NFIB filed the lawsuit with the Minnesota Chapter of Associated Builders and Contractors, Inc. (MNABC), Builders Association of Minnesota, and J&M Consulting, LLC.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.