United States: The New Minnesota Wage Theft Law: What You Need To Know

Last Updated: July 12 2019
Article by Angie Ziegler and Lisa R. Fitzgerald

The state of Minnesota has enacted a new Wage Theft Law, which took effect July 1. The law revises previous state labor laws as well as adds new wage and hour requirements, protections and sanctions.

What is wage theft?

Wage theft happens when employers don't pay owed wages for work performed. Common forms of wage theft include:

  • Not paying for overtime
  • Not paying minimum wage
  • Not paying for all hours worked
  • Not paying a worker for any work done

According to the Minnesota Department of Labor and Industry, there are roughly 40,000 Minnesota workers who pursue wage theft claims each year due to not being paid a fair day's wage for their work.

How does the new law help with wage theft?

The new legislation invests $3.1 million in funding over the next two years to the Department of Labor and Industry's enforcement of wage and hour laws for the state of Minnesota.

The new Minnesota statute will expand the Department of Labor and Industry's and the Attorney General's authority to enforce penalties when it comes to wage theft as well as create extra protections for workers related to wage theft.

The law also makes wage theft a felony, with criminal provisions related to the new law taking effect on August 1, 2019. If an employer is found guilty of stealing wages, they can face up to 20 years in prison or a $100,000 fine.

What changes are included in Minnesota's new wage theft law?

There are several new requirements in the law that Minnesota employers need to be aware of.

Employee Notice

Employers must provide each employee a written notice at the start of employment and keep a signed copy of the notice on file. The notice must include:

  • Required information about an employee's employment status and the terms of their employment
  • Rate of pay
  • Allowances, if any, related to lodging and meals
  • Paid vacation, sick time and other paid time off accruals
  • A list of deductions made from an employee's pay
  • Number of days in the pay period, the regularly scheduled pay day and the pay day when the employee will receive first payment
  • Legal name of employer and operating name if different
  • Physical address of the main office or principal place of business, as well as a mailing address, if different
  • Telephone number of the employer
  • A statement, in multiple languages, informing employees they may request the notice be provided in another language

Need help creating your notice?

Employee Notice Example

Earning Statement Requirements

Earning statements, also known as paystubs, are used by employers and employees to document important information about wages paid, hours worked, deductions and benefits. Existing state law required earning statements to be provided to the employee electronically or in writing at the end of each pay period. Specific information had to be included as part of this earning statement.

Under the new law, earning statements must now include the following additional information for each pay period:

  • Employee's rate or rates of pay, including whether they are paid by the hour, shift, day, week, salary, piece, commission etc.
  • Allowances claimed for meals and lodging, as permitted
  • Telephone number of the employer
  • Physical address of the employer's main office/place of business
  • Mailing address, if different from the above

There are several requirements when it comes to tracking payroll.

The following resources may help:

Behind the Metrics: People & Payroll

Guidance for employers on Minnesota's new Wage Theft Law

Record Keeping Requirements

Record keeping and documentation are incredibly important for any business. These records help demonstrate an employer's ability to remain compliant with wage and hour laws. The current law requires records be kept for three years. 

The new Minnesota law requires the following additional records be kept:

  • Each employee's hours worked, as well as each workweek
  • If an employee is paid at a piece rate, the number of pieces completed at each piece rate
  • Personnel policies list, along with descriptions of each policy provided to the employee with the dates the policies were given to that employee
  • A copy of the new notice, signed by each employee at the start of employment, as well as a copy of any written changes to the notice provided to the employee

Ideally, records should be kept onsite at the primary place of business. If they are not kept there, employers must have the ability to comply with the commissioner's request within 72 hours.

Who does the new wage theft law apply to?

The new wage theft law applies to Minnesota employees and employers. Legislators are heralding it as one of the toughest in the country.

If you're not from Minnesota, you should still be thinking about wage theft. Wage theft laws and the penalties for wage theft vary by state. As an employer, the best thing to do is stay up to date on the legislation and regulations related to your location and your industry. Also, take time to look at your worker and wage classifications to ensure they are correct.

What do I need to do?

If you are an employer in Minnesota, ensure you're in compliance with the new legislation. Employers must create the newly required notice for all employees hired on or after July 1. At this point, it's unclear if the notice must be provided to currently employees. However, if any of the required information changes for current employees, you must provide a notice to them before the date the changes take effect.

It's a good time to review your recordkeeping policies, as well as your payroll documentation processes. Make sure you're providing the correct items to your employees, as well as keeping accurate historical records for your business. Proper documentation related to employee records and earning statements will be key as you work to remain compliant with the new Minnesota statute.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions