New independent contractor law remains in effect after challenge in Federal Court

Trade groups challenged the state over 2024 misclassification law

The United States District Court in the District of Minnesota.

In March, Judge John Tunheim issued an order denying a request by industry groups to halt the implementation of the new independent contractor law passed last year, which went into effect on March 1.

The case, brought by Associated Builders and Contractors, Builders Association of Minnesota, and J&M Consulting, is challenging the validity of the law in Federal Court and the request for a temporary restraining order on the new law was requested by the industry while the court seeks to address the merits of the industry’s arguments.

With the ruling, the law will remain in effect. Judge Tunheim’s opinion was limited to the request to stay the enforcement of the law and did not address the specific complaints of the law.

Housing First Minnesota staff was present at the February 26 hearing and will continue to provide resources regarding these changes to the independent contractor test.