Effective July 1, all employers, as well as their owners, will face substantially increased penalties for misclassifying employees as independent contractors. A public contracting agency shall make progress payments on a public contract for a public improvement monthly as the work progresses.Shadow covenants are contracts between two entities "above the employee," restricting the employee's employment without their knowledge. Every contract for the leasing for a longer period than one year or for the sale of any lands, or any interest in lands, shall be void. Funds must be encumbered prior to making an obligation. â–« Has work begun prior to contract's full execution? Minnesota law mandates that contracts for new-home construction and home improvement projects include statutory warranties against defects. This Frequently Asked Questions (FAQs) page will discuss 50 questions that clients often ask attorneys about breach of contract in Minnesota. Minnesota law requires charitable organizations to make certain disclosures to prospective donors when requesting a contribution. When you contract with an exempt organization (churches, schools, government agencies), you will generally owe sales tax on purchases of materials and supplies.