BIA Advocacy Update

Minnesota Reminders

Paid Leave 

The Paid Family and Medical leave program is set to begin Jan. 1, 2026. 

MN Paid Leave is hosting a webinar noon - 1 p.m. April 10. Learn more and register here. 

Below are key dates to be reminded of: 

You can access resources on the paid leave website. 

Worker Misclassification

A new test to determine worker classification in Minnesota went into effect on March 1, 2025. 

Helpful Links: 

• Construction Worker Misclassification information 
• Common FAQs
• Construction Worker Misclassification Law

In the commercial or residential building construction industry, workers are considered employees unless they meet the 14 legal requirements to be considered independent contractors:

1. was established and maintained separately from and independently of the person for whom the services were provided or performed;

2. owns, rents, or leases equipment, tools, vehicles, materials, supplies, office space, or other facilities that are used by the business entity to provide or perform building construction or improvement services;

3. provides or performs, or offers to provide or perform, the same or similar building construction or improvement services for multiple persons or the general public;

4. is in compliance with all of the following:

(i) holds a federal employer identification number if required by federal law;

(ii) holds a Minnesota tax identification number if required by Minnesota law;

(iii) has received and retained 1099 forms for income received for building construction or improvement services provided or performed, if required by Minnesota or federal law;

(iv) has filed business or self-employment income tax returns, including estimated tax filings, with the federal Internal Revenue Service and the Department of Revenue, as the business entity or as a self-employed individual reporting income earned, for providing or performing building construction or improvement services, if any, in the previous 12 months; and

(v) has completed and provided a W-9 federal income tax form to the person for whom the services were provided or performed if required by federal law;

5. is in good standing as defined by section 5.26, if applicable;

6. has a Minnesota unemployment insurance account if required by chapter 268;

7. has obtained required workers' compensation insurance coverage if required by chapter 176;

8. holds current business licenses, registrations, and certifications if required by chapter 326B and sections 327.31 to 327.36;

9. is operating under a written contract to provide or perform the specific services for the person that:

(i) is signed and dated by both an authorized representative of the business entity and of the person for whom the services are being provided or performed;

(ii) is fully executed no later than 30 days after the date work commences;

(iii) identifies the specific services to be provided or performed under the contract;

(iv) provides for compensation from the person for the services provided or performed under the contract on a commission or per-job or competitive bid basis and not on any other basis; and

(v) the requirements of item (ii) shall not apply to change orders.

10. submits invoices and receives payments for completion of the specific services provided or performed under the written proposal, contract, or change order in the name of the business entity. Payments made in cash do not meet this requirement;

11. the terms of the written proposal, contract, or change order provide the business entity control over the means of providing or performing the specific services, and the business entity in fact controls the provision or performance of the specific services;

12. incurs the main expenses and costs related to providing or performing the specific services under the written proposal, contract, or change order;

13. is responsible for the completion of the specific services to be provided or performed under the written proposal, contract, or change order and is responsible, as provided under the written proposal, contract, or change order, for failure to complete the specific services; and

14. may realize additional profit or suffer a loss, if costs and expenses to provide or perform the specific services under the written proposal, contract, or change order are less than or greater than the compensation provided under the written proposal, contract, or change order.

If you have any questions, contact the Department of Labor and Industry’s Labor Standards Division at 651-284-5075 or dli.laborstandards@state.mn.us. 

Join us April 30 for Building Officials Roundtable

Our annual Building Officials Roundtable will be 11:30 a.m. - 1 p.m. April 30 at the BIA office. We will be joined by Shawn Ouradnik and Peggy Amsbaugh, Fargo; Mike Moss, Moorhead; and Steve Schroeder, Dilworth and surrounding areas.

We will hear updates and important compliance reminders from each city, followed by a Q&A. If there are specific questions you want to ensure are asked, please send them to Elizabeth Kosel, education and public affairs specialist, prior to the event.

Register here. 

Moorhead Updated Sidewalk Installation Form 

The City of Moorhead shared an updated sidewalk installation acknowledgement form for new homes. Please utilize this updated version.

Click here to access the updated form. 

News from NAHB

Cost and Tariff Uncertainty Weighs on Markets

According to NAHB Chief Economist, Dr. Robert Dietz, uncertainty around tariffs and inflation is heavily impacting financial markets, with bond markets on hold. The 30-year fixed mortgage rate remains around 6.6%, and the Federal Reserve held its policy rate after its March meeting.

According to the NAHB/Wells Fargo Housing Market Index (HMI), builder confidence dropped to 39 in March, the lowest in seven months. A survey of builders found recent tariffs add an estimated $9,200 per home. Uncertainty with tariffs and markets is also impacting buyers and development decisions. Despite this, builders seem to be remaining optimistic, with sales expectations for the next six months remaining at 47.

Housing inflation remains tied to construction costs. According to the most recent Producer Price Index (PPI), input prices rose 0.5% in February, with softwood lumber prices up 11.7% compared to last year. Tariffs are expected to put further pressure on costs. 

For further information and to read the article, click here.

FinCEN Narrows Beneficial Ownership Reporting Requirements to Foreign Entities

The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) published an interim final rule on beneficial ownership information (BOI) reporting requirements, only requiring foreign reporting companies to report. That means that domestic reporting companies are exempt and don't have to report BOI to FinCEN or update or correct anything previously reported. This rule was effective March 26, 2025. 

In addition, foreign entities will not be required to report any U.S. persons as beneficial owners, and U.S. persons will not be required to report BOI with respect to any such entity for which they are a beneficial owner. 

Additional information can be found in this article. 

New blog post: Stormwater tips & refreshers

Check out the latest blog post compiling tips and refreshers from our local jurisdictions on stormwater regulations.