Minnesota: Claims for Negligent Selection of Independent Contractors
|
APPLIES TO Companies Engaging Independent Contractors in MN |
EFFECTIVE July 10, 2024 |
QUESTIONS? Contact HR On-Call |
Quick Look
|
Discussion
In Alonzo v. Menholt, the Minnesota Supreme Court recognized a new claim for negligent selection of an independent contractor. As a result, companies operating in the state of Minnesota may be held responsible for inadequately screening their independent contractors or their employees prior to engagement.
In this case, two drivers hauling sugar beets crashed into each other on a rural Minnesota road. One of the drivers had a suspended license and several other blemishes on his driving record. The unlicensed driver crossed the road’s centerline and seriously injured the other driver. The injured driver sued the other driver and his employer, Braaten Farms, for his injuries. Braaten Farms had not interviewed the driver, performed a background check, reviewed his driving record, or done several other pre-employment screens when it hired him.
As part of the lawsuit, the injured driver also sued Menholt Farms, for whom Braaten Farms had agreed to provide services as an independent contractor. Menholt Farms did not perform any background checks on Braaten’s employees, and it did not ask how Braaten “hired or screened the employees who hauled Menholt Farms’s sugar beets.” Because of this, the injured driver alleged that Menholt Farms was negligent in engaging Braaten Farms to provide services as an independent contractor.
In deciding the case, the Minnesota Supreme Court said that Minnesota law does recognize a claim for negligent selection of an independent contractor, which requires a showing that the principal (1) breached their duty to exercise reasonable care in selecting a competent and careful contractor, and (2) that this breach of duty caused the claimant’s physical harm. The Court noted that the more dangerous and more specialized the work, the more care an engaging entity must exercise in selecting independent contractors.
Action Items
- Review and update processes for vetting independent contractors prior to service, including how the independent contractors vet their own employees.
- Consult with legal counsel about particular concerns identified with certain independent contractors.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2024 ManagEase