Minnesota’s New Wage Theft Law

The Minnesota Legislature passed and the governor signed a new Minnesota Wage Theft Law. The new law amends existing state labor laws and provides for new wage and hour requirements, protections and sanctions. All provisions summarized below, except for those amending Minnesota Statutes § 609.52 (criminal wage theft and sanctions), go into effect July 1, 2019.

The provisions providing for criminal wage theft and sanctions go into effect Aug. 1, 2019.

The complete text of the new law is available here: www.revisor.mn.gov/laws/2019/1/Session+Law/Chapter/7/.

If you want to read a quick summary:  http://www.dli.mn.gov/sites/default/files/pdf/wage_theft_law_summary.pdf

Below we have included some high-level provisions:

  • Effective for all new hires starting July 1, 2019.
  • The new law requires all employers to provide each employee with written notice at the start of their employment. Employers are required to keep a copy of the signed notice for each employee.

The notice must contain the following specific information, which is in addition to the information required to be provided to workers under existing law:

  • The employee’s rate or rates of pay and basis thereof, including whether the employee is paid by the hour, shift, day, week, salary, piece, commission or other methods, and the specific application of any additional rates.
  • Allowances, if any, that may be claimed for permitted meals and lodging.
  • Provision of paid vacation, sick time or other paid time-off, how the paid-time-off will accrue and terms for its use.
  • The employee’s employment status and whether the employee is exempt from the minimum wage, overtime and other provisions of Minn. Stat., Chapter 177, and on what basis.
  • A list of deductions that may be made from the employee’s pay.
  • The number of days in the pay period, the regularly scheduled payday and the payday on which the employee will receive the first payment of wages earned.
  • The legal name of the employer and the operating name, if different.
  • The physical address of the employer’s main office or principal place of business and a mailing address, if different.
  • The telephone number of the employer.

Under existing law, employers are required to keep various records for three years. The new law requires the following additional records be kept:

  • Hours worked for employees paid at piece rate and the number of pieces completed at each piece rate.
  • A list of the personnel policies provided to the employee, including the date the policies were given to the employee and a brief description of the policies.

Employers must pay all wages, including salary, earnings and gratuities earned by an employee at least once every 31 days and all commissions earned by an employee at least once every three months on a regular payday.

Contact your team at Lurie for more information.

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