If an employee is misclassified, meaning an independent contractor is determined to be an employee according to Minnesota law, the employer and business owner may be criminally liable for the misclassified employee’s unpaid withholding taxes and benefits. It is a very serious offense that can cause a major business disruption. To protect your business from a misclassification claim and other employment issues, you need to implement specific procedures and measures that follow Minnesota’s employment laws.
Start by defining the tasks the employee will be responsible for and the skills the person needs to have. Create a detailed job description, then interview candidates. When you’re ready to make an offer, follow Minnesota’s New Employee Notice requirement and create an employee handbook that clearly describes the company’s employment policies. Provide each new hire with a copy of their New Employee Notice and the handbook, and keep a copy of the signed receipt for three years. You should keep specific records throughout the employment process to protect your business from potential employment issues.
Terminating an employee is very different than terminating a relationship with an independent contractor. Most employees in Minnesota are employees-at-will, meaning there is no employment contract. Most independent contractors have a contract that defines the relationship and dictates how the contract can be terminated.
We help you make sure the termination process is done properly without risking employer-employee issues. This includes understanding the outcome possibilities of terminating the employee or independent contractor so you can make the best decision.
Whether it’s federal law or the Governor’s executive orders, we are well-versed in the ever-changing regulations arising out of the COVID-19 pandemic and its impact on the construction industry, including employment issues. We will guide you through the process so you can confidently understand your rights and responsibilities.
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