Minnesota: New Wage Theft Prevention Bill Greatly Expands Employer Responsibilities – And Potential Penalties

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All Employers of MN Employees

EFFECTIVE

July 1, 2019

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(888) 378-2456

The Jobs and Economic Development Omnibus bill (the Bill), recently passed by the Minnesota Legislature and signed by Governor Walz, impresses upon employers new wage-paying requirements.  The Bill incorporates new timing, notice, and recordkeeping obligations for employers, and greatly expands civil and criminal enforcement of wage payments. Employers should note the following key provisions:

Timing and Payment of Wages

  • Wages (including salary, earnings, and gratuities) must be paid at least once every 31 days;
  • Earned commissions must be paid at least once every three months;
  • Commissions are now included as a type of wage for which employees may demand payment. Commissions that are not paid within 10 days of the demand are subject to an additional penalty equaling 1/15 of the value of the unpaid commission for each day beyond the 10 day limit; and
  • The 15-day cap on penalties for late payments has been removed.

Notice

  • In addition to previously mandated wage statement information, employers must now include the following information on wage statements:
    • Basis and rate(s) of pay for each type of pay (e.g., hourly, salary, commission, daily, etc.)
    • Meals and lodging allowances, if any
    • Physical address of the employer’s main office or principal place of business (including mailing address, if it differs from physical location)
    • Employer’s telephone number
  • Employers must provide a written notice to employees at time of hire containing the below information, and retain a signed copy of the notice. The notice must be provided in English and any other language the employee requests.
    • Basis and rate(s) of pay for each type of pay (e.g., hourly, salary, commission, daily, etc.)
    • Meals and lodging allowances, if any
    • Physical address of the employer’s main office or principal place of business (including mailing address, if it differs from physical location)
    • Employer’s telephone number
    • Employer’s legal name and/or DBA
    • Paid sick time, vacation time, or other time off accruals and conditions of use
    • Employment status and FLSA classification
    • List of deductions that can be taken from the employee’s wages
    • The first pay day employee will receive wages, as well as regularly scheduled pay day(s) and number of pay days in the pay period
  • Similarly, employers must provide written notice when any portion of the above information changes, as well as the effective date of the change.

Recordkeeping

Employers are now required to maintain records of the following:

  • For employees paid at a piece rate, the number of completed pieces;
  • A list of all company policies provided to the employee, including the date and description of the policies provided;
  • Copy of the written notice provided to a new employee at time of hire, plus any written changes thereafter.

In addition to the above bevy of changes, the Bill increases civil penalties for failure to pay wages, permits the Commissioner of Labor to interview aggrieved and other non-management employees about matters under investigation, prohibits retaliation against employees bringing wage claims, and defines “wage theft” for the purpose of applying the criminal theft statute.

Action Items

  1. Review the emergency bill here and the regulations here.
  2. Revise compliance timeline with new deadlines.
  3. Display updated poster.
  4. Continue to prepare for notice, withholding, and contribution requirements.
  5. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

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.

© 2019 ManagEase

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