Subdivision 1.Fraudulent device to evade responsibility to worker.

Subject to subdivision 2, a person who creates or executes any fraudulent scheme, artifice, or device to enable the person to execute work without being responsible to the worker under this chapter, is deemed an “employer” and is subject to the liabilities which this chapter imposes on employers.

Subd. 2.Contractor, subcontractor.

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Terms Used In Minnesota Statutes 176.205

  • Contract: A legal written agreement that becomes binding when signed.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Person: may extend and be applied to bodies politic and corporate, and to partnerships and other unincorporated associations. See Minnesota Statutes 645.44

Subdivision 1 does not apply to an owner who in good faith lets a contract to a contractor. In such case, the contractor or subcontractor is deemed the “employer.”

Subd. 3.Exceptions.

A person shall not be deemed a contractor or subcontractor where:

(1) the person performs work upon another’s premises, with the other’s tools or appliances, and under the other’s direction; or

(2) the person does what is commonly called “piece work”; or

(3) in any way the system of employment merely provides a method of fixing the worker’s wages.

Subd. 4.Calculation of compensation.

Where compensation is claimed against a person under the terms of this section, the compensation shall be calculated with reference to the wages the worker was receiving at the time of the injury or death from the person by whom the worker was immediately employed.