Wage and Hour Bulletin

February 2025

Undertstanding worker misclassification

Worker misclassification occurs when an employer incorrectly labels employees as independent contractors. Misclassifying employees as independent contractors is an issue because misclassified workers often do not receive:

• minimum wages;
• overtime pay;
• earned sick and safe time;
• unemployment benefits;
• workers' compensation coverage;
• pregnancy and parental leave; and
• other workplace protections that properly classified employees are entitled to under the law.

Learn more about misclassification.

Updated misclassification law impacting the construction industry

Misclassifying workers who are employees as independent contractors is a violation of Minnesota law. Following the 2024 legislative session, state misclassification laws were updated, including the following. Starting March 1, 2025, the independent contractor test will change from nine to 14 requirements. While many of the 14 requirements are similar to the earlier version of the law, contractors should review the updates to ensure compliance. View more information about misclassification in the construction industry, including FAQs and a presentation.

Prevailing wages explained

Prevailing wage is the minimum hourly wage and benefits employers must pay workers on construction and public works projects funded by state dollars. If you are working on these types of projects and want to learn more, visit our "Prevailing-wage information" webpage or sign up for our webinar.

• When:  April 30, 9 to 10 a.m.
• Register:  dli.mn.gov/events

Meat and poultry processing workers' rights

Workers in the meat and poultry processing industry have workplace rights and protections, including: a safe and healthy work environment; fair wages and overtime pay under state and federal law; protection against retaliation for reporting unsafe conditions; and the ability to organize and advocate for better working conditions. The Department of Labor and Industry (DLI) is committed to ensuring these rights are upheld and encourages workers to report violations or unsafe working conditions. Learn more about the Safe Workplaces for Meat and Poultry Processing Workers Act law and recent recommendations for meat and poultry processing workers in our 2024 report.

Black History Month

February is Black History Month, a month to reflect on the historic and ongoing fight for equal rights in the workplace. From the early labor organizing of Black workers to landmark civil rights legislation, the push for fair wages and safe working conditions continues today. Minnesota remains committed to advocating workplace equity and inclusion for all workers. For more information about workplace rights and protections, or to report a violation, visit dli.mn.gov/laborlaw.

Webinar:  Minnesota labor laws for teen workers

This webinar will review labor laws impacting youth workers in Minnesota, including hours of work, hazardous work restrictions, training wages and other requirements.

• When:  Feb. 25, 10 to 11 a.m.
• Register:  dli.mn.gov/events

Question of the month

What should an employer do to make sure it is properly classifying its workers?*

Employers should evaluate each worker individually, consult state and federal independent contractor tests, and seek advice from legal counsel as needed.

The independent contractor test for general misclassification in the wage and hour context is found in Minnesota Statutes section 181.722, subd. 3, and the independent contractor test for misclassification in the residential and commercial construction context is found in Minnesota Statutes section 181.723, subd. 4.

*Beginning March 1, 2025, the independent contractor test will expand from nine to 14 elements. We will update our website with the new information when it becomes available.

Test your knowledge:  Earned sick and safe time

Take our quick quiz to see how much you know about earned sick and safe time (ESST).

Find more information about ESST online or contact us at 651-284-5075 or esst.dli@state.mn.us.

Wage and Hour Bulletin archive

Find past editions of The Wage and Hour Bulletin.

Questions?

Labor Standards serves the people of Minnesota by providing
information about the state's wage, hour and employment laws.

Phone:  651-284-5075 or 800-342-5354
Email:  dli.laborstandards@state.mn.us
Website:  dli.mn.gov