Minnesota Administrative Rules

5224.0070 CONSULTANTS.

Subpart 1.

Definition.

A consultant is one who confers with and advises people on matters within the particular field in which he or she specializes. The consultant has developed a peculiar knowledge or special skill of a professional or semiprofessional nature through extensive training and education or through wide experience in a particular occupation.

Subp. 2.

Independent contractor.

A consultant is an independent contractor if all of the following criteria are substantially met.

A.

The consultant rents an office or offices at home.

B.

The consultant advertises in newspapers or trade journals, or maintains business listings, or otherwise holds himself or herself out to the public as being available for a particular type of service.

C.

The consultant is free to hire clerical help and assistants.

D.

The consultant's success in the business world is dependent entirely on personal efforts and the demand by the public for the services.

E.

The consultant operates under an arrangement where for a set fee technical advice or assistance is given.

F.

The consultant's contract of service is for a specified period of time or specific purpose.

G.

The consultant is free to work for others at the same time.

H.

The consultant is not required to observe regular hours of work either at the firm's offices or at home.

I.

The consultant agrees only to be available for conferences and consultations at the request of the firm or, as in some cases, to perform services on a specified minimum number of days.

J.

The consultant makes no regular reports and is not required to attend regular conferences with members of the firm.

K.

The consultant is not subject to control or supervision, but is given a free hand in doing work.

L.

The consultant is employed to do a specific job and those who employ the consultant are interested only in the result accomplished and not in the manner and means of accomplishing it.

Subp. 3.

Employee.

A consultant is an employee when all the following criteria are substantially met.

A.

The consultant is retained for services which further the employer's business.

B.

The consultant is required to perform services personally.

C.

The consultant's services are not available to the public.

D.

The consultant has no investment or business expense.

E.

The consultant provides recurring, rather than sporadic or infrequent, services.

F.

The employer has the right of first call on the services of the consultant.

G.

The consultant is required to report on the progress of assignments.

H.

Either party has the right to end the relationship at any time.

I.

The consultant receives a fixed salary determined on a weekly, monthly, annual, or similar basis.

J.

The consultant cannot realize a profit or loss from the services.

Statutory Authority:

MS s 176.041; 176.83

History:

10 SR 1852

Published Electronically:

June 11, 2008