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Independent Contractor Test in Minnesota

Minnesota uses the common law employer-employee test for unemployment insurance, its misclassification law borrows the unemployment and workers' compensation tests, and construction work has its own statutory test.

Last checked . General information, not legal advice.

Minnesota at a glance

Test for wage and hour law
Same tests as unemployment and workers' comp
The misclassification law uses those tests; building construction uses a separate statutory business entity test (Minn. Stat. 181.723).
ABC test for wage law
No
Test for unemployment insurance
Common law (right to control) test
Employment means service by an individual who is an employee under the common law of employer-employee; construction work follows Minn. Stat. 181.723.
ABC test for unemployment
No

Sources

Last checked

The rules in Minnesota

Which test does Minnesota use to classify independent contractors under its wage and hour laws?

Test for wage and hour law in Minnesota: Same tests as unemployment and workers' comp. The misclassification law uses those tests; building construction uses a separate statutory business entity test (Minn. Stat. 181.723).

Does Minnesota apply the ABC test under its wage and hour laws?

No. ABC test for wage law in Minnesota: no.

Which test does Minnesota use to classify independent contractors for unemployment insurance?

Test for unemployment insurance in Minnesota: Common law (right to control) test. Employment means service by an individual who is an employee under the common law of employer-employee; construction work follows Minn. Stat. 181.723.

Does Minnesota apply the ABC test for unemployment insurance?

No. ABC test for unemployment in Minnesota: no.

Where do the Minnesota independent contractor tests come from?

The rules above come from Minn. Stat. 268.035, Minn. Stat. 181.722 and Minn. Stat. 181.723. Each source is linked on this page. We last checked them in October 2026.

Good to know

Minn. Stat. 181.722 and 181.723 were amended in 2024 (2024 c 127 art 10 s 7 and s 8).

What this means in practice

Write down how the working relationship actually operates: who sets the hours, who supplies tools, whether the worker serves other clients and whether the work is part of the business's usual line of work. These facts drive every classification test, and a written independent contractor agreement helps only if it matches them.

Check each law separately. A worker can be a contractor under one statute and an employee under another, because wage laws, unemployment insurance, workers' compensation and tax rules may each use their own test. Federal law also applies its own tests alongside the state rules.

Misclassification can lead to back wages, unpaid unemployment contributions, interest and penalties. If a role is close to the line, read the statute and agency guidance for the state where the work is performed, or ask the state labor or unemployment agency how it applies its test.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.