Purpose of the Bill

The purpose of this bill is to improve the reporting system for child support by including independent contractors and payors. The bill aims to ensure that all entities are responsible for reporting compensation paid to independent contractors, thereby enhancing the enforcement of child support obligations.

Main Provisions

• Definitions and Inclusions: The bill updates definitions related to employment and compensation, explicitly including independent contractors. Independent contractors are those individuals or businesses who perform services worth $600 or more annually for another person or entity in Minnesota. This could include gig workers like drivers for transportation companies.

• Employer Obligations: Employers, as defined by the bill, must report individuals they hire, including independent contractors, to a centralized work reporting system. This includes any rehired employees who have had a break in service of more than 60 days.

• Payor Responsibilities: The bill introduces a new category of "payors," who are any persons or entities paying an independent contractor for services performed. They are also required to report to the centralized system.

• Exemptions: Certain types of employment, such as domestic service in private homes and some federal intelligence positions, are exempted from these reporting requirements.

Significant Changes to Existing Law

Previously, the requirement to report was primarily focused on conventional employees. This bill expands the scope of mandatory reporting to include independent contractors, thus modernizing the approach to account for the growing gig economy. It mandates new responsibilities for businesses and individuals acting as payors to report these contractors’ earnings, which was not explicitly required before.

Relevant Terms

• Child support
• Independent contractors
• Centralized work reporting system
• Employer
• Payor
• Gig workers