Minnesota Administrative Rules
Agency 151 - Labor and Industry Department
Chapter 5224 - INDEPENDENT CONTRACTOR
Part 5224.0180 - HOUSE-TO-HOUSE DEALER SALESPEOPLE
Universal Citation: MN Rules 5224.0180
Current through Register Vol. 49, No. 27, December 30, 2024
Subpart 1. Definition.
A house-to-house dealer salesperson buys stocks of commodities at wholesale from a company and sells them at retail. In other respects, the dealer is similar to ordinary retail merchants and house-to-house commission salespeople.
Subp. 2. Independent contractor.
A dealer is an independent contractor if all of the following criteria are substantially met.
A. The
dealer is not required to work during fixed hours or at certain times, to
follow any particular routes or schedules or to report on his or her
activities.
B. The dealer keeps
substantial inventories and has automobiles or trucks to deliver
merchandise.
C. The dealer may
employ others.
D. Compliance with
suggestions or attendance at selling meetings are optional with the
dealers.
E. The dealer is not
required to solicit prospective purchasers identified by the company.
F. The dealer chooses working hours and
methods of solicitation.
G. The
dealer pays business expenses and, by selling on credit, takes a risk of
loss.
H. The dealer is dependent
for a livelihood on personal efforts and ingenuity in establishing clienteles
and good reputations.
Subp. 3. Employee.
A dealer is an employee if all of the following criteria are substantially met.
A. The dealer must
report regularly on sales, prospects, and work activities.
B. The dealer must report regularly for sales
meetings and pep talks.
C. Although
not usually required to work during hours fixed by the firm, the dealer is
expected to meet a certain quota.
D. The dealer is restricted from selling on
credit and must abide by prices set by the company.
E. Merchandise may be returned to company
with no loss to the dealer.
F. The
dealer is furnished leads and required to follow-up and report.
G. The dealer is required to concentrate on
certain products listed as "specials" and follow schedules or routes worked out
by the company.
H. If sales fall
off, a manager or other company representative investigates and instructs the
dealer how to increase sales.
I.
Helpers may be provided by the company for dealers who maintain large volumes
of sales.
J. The relationship is
terminable by either party on short notice and without liability to the
employee for noncompletion.
K.
Where the dealer trains others, the dealer is paid and may be elevated to a
managership.
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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