What are the laws concerning employee classification as employees or independent contractors?

In Minnesota, labor laws differentiate between employees and independent contractors by way of tests, including a common law control test and an economic reality test. The common law control test considers various factors, such as who controls the method and manner of work, and whether the worker has the right to assign the task to others or hire helpers. The economic reality test, meanwhile, looks at whether the worker is economically dependent on the employer and if the employer has the right to control the results of the work performed. If an employer classifies an individual as an independent contractor, they must ensure that the worker is actually an independent contractor by all legal and economic measures. If an employer does not properly classify an employee or independent contractor, they may be found liable for applicable taxes and for minimum wage and overtime laws. Employers must also ensure that they comply with other legal requirements, such as that independent contractors do not work for only one employer. For example, Minnesota state law requires that independent contractors are free to work with multiple employers and can set their own hours and working conditions. It is important for employers in Minnesota to understand the legal differences between employees and independent contractors in order to ensure lawful and ethical practices.

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What are the laws concerning employee classification as employees or independent contractors?

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