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As of January 1, construction workers in Minnesota who work as independent contractors are required to register with the State Labor and Industry Department. The requirement is meant to stop contractors from illegally classifying their employees as independent contractors to cut labor costs.
But, according to the Star-Tribune, many have found a way around the requirement. The law has a loophole: Anyone working as an independent contractor in the construction industry — legally or not — automatically avoids the new rules by incorporating as a limited liability company (LLC).