State law requires individuals (not corporations, LLCs or partnerships) who work as independent contractors in the building construction industry to obtain from the Department of Labor and Industry an Independent Contractor Exemption Certificate (ICEC). For purposes of the state workers' compensation, unemployment insurance, wage and hour, occupational safety and health laws, and state and federal tax withholding, individuals doing residential and commercial construction work without an ICEC will be considered employees of the contractor for whom they are working.

These businesses are characterized as contracting, performing work and receiving compensation from another contractor. The ICEC is only required for independent contractor sole proprietorships who subcontract.

Businesses that are registered as another business entity with the Minnesota Secretary of State do not qualify for the ICEC. This includes corporations, LLCs and partnerships. Also, the ICEC does not apply to construction sales, many types of landscaping (see Minn. Statutes 181.723, sub. 2) construction design, manufacturing, cleanup, deliveries or maintenance.

To obtain an ICEC, individuals must complete and submit an application, fees and supporting documents that establish they meet the conditions required to operate as an independent contractor. Fees to apply for and renew an ICEC are nonrefundable. To operate as independent contractors, individuals must be able to meet the conditions set out in the law's nine-factor test.

An ICEC permits individuals to work as independent contractors. Certificate holders, however, may work as either independent contractors or as employees. Whether a certificate holder is working as an employee or an independent contractor will depend on the conditions of the particular work relationship. To be an independent contractor, in addition to having an ICEC, the conditions of the work relationship must also meet the nine-factor test.

For details about the Independent Contractor Exemption Certificate program and requirements, view the following fact sheet, brochure and slide show, or visit the FAQ page.

• Item 1a
• Item 2a
• Item 3a
• Item 4a

• Item 1b
• Item 2b

• Item 1c
• Item 2c
• Item 3c
• Item 4c
• Item 5c