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RESOURCES THAT HELP YOUR BUSINESS GROW
By Chad Staul
Minnesota’s new wage theft law adds to all employers’ wage and hour obligations. for wages for a greater amount than that actually paid to the employee for services rendered ________ Directly or indirectly demanding or receiving from any employee any rebate or refund from the wages owed the employee; or ________
erhaps the largest change to Minnesota’s wage and hour law in recent years is now in effect. The law, among other things, imposes criminal penalties for “wage theft,”creates additional administrative requirements for employers, and greatly expands employee protections. What is Wage Theft? Generally speaking, wage theft is when an employer commits actions that adversely affect an employee’s wages.
While such actions have always been deemed civil violations, they may now be considered criminal in nature. Any of the following actions done with the intent to defraud will be considered wage theft: Failing to pay an employee all wages, salary, gratuities, earnings, or commissions as required by federal, state, or local law ________
Directly or indirectly causing any employee to give a receipt
contributor Chad Staul is an attorney with Quinlivan & Hughes. He specializes in employment and labor law.
Business Central Magazine // S E P T E M B E R / O C T O B E R 2 0 1 9
Making it appear in any manner that the wages paid to any employee were greater than the amount actually paid to the employee. In addition, the law requires employers to provide employees with an Employee Notice and implement new Earnings Statements. It also gives the Minnesota Department of Labor and Industry (DOLI) greater authority to monitor compliance. What is an Employee Notice? Beginning on July 1, 2019, employers must provide each employee at the start of employment a written notice containing a great deal of information regarding the employee’s terms and conditions of employment. You can find a link at BusinessCentralMagazine.com to the DOLI’s sample form for more detailed information on what the form must contain.
Employers must keep a copy of the notice signed by each employee acknowledging receipt. Best practice is to place it in the employee’s personnel file. This will be useful when changes need to be made. When information on the original Employee Notice changes, employers must give the employee written notification of the change prior to the date it takes effect. Best practice would be to document any change in the information and attach it to the Employee Notice so that over time the employee’s personnel file will reflect a chronological history of that employee’s terms and conditions of employment. What is the Earnings Statement? In addition to the information already required by law, the Earnings Statement provided to employees must also include the following new information: ________ The basis for an employee’s pay, including whether the employee is paid by hour, shift, day, week, salary, piece, commission, or other method ________ Allowances, if any, claimed pursuant to permitted meals and lodging
St. Cloud Area Chamber of Commerce Business Central Magazine