1.1 	A bill for an act
1.2 	relating to worker's compensation; prohibiting
1.3 	employers from misrepresenting the nature of its
1.4 	employment relationships; requiring reports; amending
1.5 	Minnesota Statutes, section 176.042, subdivision 1.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 176.042,
1.8 	subdivision 1, is amended to read:
1.9 		Subdivision 1.General rule; are employees. (a) Except
1.10 	as provided in subdivision 2, every independent contractor doing
1.11 	commercial or residential building construction or improvements
1.12 	in the public or private sector is, for the purpose of this
1.13 	chapter, an employee of any employer under this chapter for whom
1.14 	the independent contractor is performing service in the course
1.15 	of the trade, business, profession, or occupation of that
1.16 	employer at the time of the injury.
1.17 	(b) No employer described in paragraph (a) shall
1.18 	misrepresent the nature of its employment relationship with its
1.19 	employees to any federal, state, or local government unit, to
1.20 	other employers or to its employees.  An employer misrepresents
1.21 	the nature of its employment relationship with its employees if
1.22 	it makes any statement regarding the nature of the relationship
1.23 	that the employer does not in good faith believe to be true or
1.24 	if it fails to report individuals as employees when legally
1.25 	required to do so.
2.1 	(c) No employer described in paragraph (a) shall require or
2.2 	request any employee to enter into any agreement, or sign any
2.3 	document, that results in misclassification of the employee as
2.4 	an independent contractor or otherwise does not accurately
2.5 	reflect the employment relationship with the employer.
2.6 	(d) Any court finding any person guilty of violating this
2.7 	subdivision shall transmit a copy of the documentation of the
2.8 	finding of guilt to the commissioner of labor and industry.  The
2.9 	commissioner of labor and industry shall report the finding of
2.10 	guilt to relevant state and federal agencies, including at least
2.11 	the commissioner of commerce, the commissioner of employment and
2.12 	economic development, the commissioner of revenue, the federal
2.13 	Internal Revenue Service, and the United States Department of
2.14 	Labor.