Minnesota Small Businesses Urge Court to Reject Vague Classification Standards
Minnesota Small Businesses Urge Court to Reject Vague Classification Standards
April 30, 2025
The case challenges Minnesota’s law on the classification of independent contractors
WASHINGTON, D.C. (April 30, 2025) – NFIB filed an amicus brief in the case Minnesota Chapter of Associated Builders and Contractors, Inc., et al. v. Nicole Blissenbach at the U.S. Court of Appeals for the Eighth Circuit. The case challenges a Minnesota state law regulating the classification of independent contractors.
“This statute places small business owners in an impossible situation that disrupts every level of a contract, spreading harm and uncertainty to every individual involved in an independent contractor relationship,” said Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center. “Small businesses are not equipped to navigate the regulatory minefield this statute creates. They will be forced to either hire compliance specialists to interpret these cryptic standards or classify all contractors as employees – neither of which they can afford. NFIB urges the Court to stop enforcement of this harmful statute and provide much-needed clarity for Minnesota’s small businesses and independent contractors.”
NFIB’s brief argues two main points: 1) The Minnesota Legislature passed the Statute as part of a 1,400-page omnibus bill that combined nine other omnibus bills and at least thirteen discrete subjects in the final hour of the 2024 legislative session without any discussion, which violates the “Single Subject and Title Clause” of the Minnesota Constitution, and 2) The Statute imposes massive penalties for noncompliance, despite its vague classification standards, and would have a disastrous impact on small businesses throughout the state.
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.
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
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