Enhanced Disclosures, Recordkeeping, and Possible Criminal Sanctions: What Employers and Employees Should Know About Minnesota's New Wage Theft Law Now in Effect
A series of legislative amendments was passed in May 2019 creating Minnesota’s new Wage Theft Law. The civil component of the Wage Theft Law — requiring greater employer disclosures for new workers and on earnings statements — went into effect July 1, 2019. The criminal penalties for employer violations under Minn. Stat. § 609.52 became effective August 1, 2019.
The new law is designed to protect Minnesota workers from illegal deductions to, or withholding of, monies rightfully earned through the course of employment. Under a policy of greater transparency, new workers must now be given written notice at the start of their employment informing them on certain employment terms such as: status, whether a worker is exempt for minimum wage or overtime, provisions of paid vacation, sick time, or other paid time off (PTO), how the paid time off will accrue, and the employee’s rate or rates of pay and the basis thereof. The complete list of required disclosures is included further in this article.
The law also requires enhanced disclosure of information on all employee earnings statements, including whether the employee is paid by the hour, shift, day, week, salary, piece, commission (or other method) and whether there are allowances claimed for permitted meals and lodging. By requiring enhanced disclosures employees can more easily assess how employers are calculating earnings to ensure the pay received accurately reflects the hours worked.
Read the full summary here.
If you have questions about Minnesota’s new Wage Theft Law or other employment related questions, please contact Morgan Godfrey or anyone in the Firm’s Employment Practice Group at 952-831-6544.