Minnesota Administrative Rules
Agency 151 - Labor and Industry Department
Chapter 5224 - INDEPENDENT CONTRACTOR
Part 5224.0060 - COLLECTORS
Universal Citation: MN Rules 5224.0060
Current through Register Vol. 49, No. 27, December 30, 2024
Subpart 1. Definition.
A collector is an individual who collects, accepts, or encourages payments from the customers of a business for merchandise sold or services rendered by that business.
Subp. 2. Independent contractor.
A collector is an independent contractor when the criteria of item A or B is substantially met.
A.
If the collector is a door-to-door or telephone collector, he or she:
(1) is assigned a specific territory and
furnished lists of people from whom to collect;
(2) is not required to conform to fixed
hours, devote any particular amount of time to the business, or produce a
minimum volume of collections;
(3)
is required to cover the territory regularly, but works out a schedule of
contacts;
(4) reports to the office
only to turn in collections and to get new lists;
(5) receives a fixed percentage of the
collections made, out of which are paid all expenses connected with the
work;
(6) is not guaranteed a
minimum income; and
(7) is free to
engage in other employment, including collecting accounts for other
firms.
B. The collector
accepts payment of bills from the customers of a third party on the collector's
premises and:
(1) bills can be paid at any and
all times the collector's premises is open for business;
(2) the collector is not required to be
present if someone is on the premises to receive payments;
(3) the collector is not required to conform
to fixed hours, or to devote any particular amount of time to the third party's
business, or to give preference to the third party's customers;
(4) the collector deposits all money
collected in a bank and periodically forwards to the third party copies of bank
deposit receipts, and complaint forms from customers;
(5) the third party furnishes the collector
with the necessary business forms, postage, and stationery;
(6) the collector is required to purchase a
surety bond;
(7) the third party
pays a salary for the collection services or the collector may receive a
percentage of the money collected;
(8) the collector is not trained in the work
or required to follow prescribed routines; and
(9) the collector is free to conduct private
business activities in addition to the collection services.
Subp. 3. Employee.
A collector is an employee if all of the following are substantially met.
A. The services of
the collector are retained to further the employer's business.
B. The collector is required to perform
services pursuant to schedules established by the employer.
C. The employer has first call on the
collector's time and efforts.
D.
The collector has no significant business expenses or investment in the
business.
E. The collector is paid
on a commission or salary basis.
F.
The employer has the right to establish the means and methods used in
collecting.
G. The employer has the
right to interfere with or set the order of the services.
H. The collector must report at the firm's
office regularly for conferences, training, or instructions.
I. The hiring of helpers or substitutes is
not permitted.
J. The grounds for
termination are not limited to failure to meet production quotas.
Statutory Authority: MS s 176.041; 176.83
Disclaimer: These regulations may not be the most recent version. Minnesota may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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