LABOR LAW NEWS

The Overlapping Minnesota and Minneapolis Wage Theft Laws: How to Comply

By Jana Bjorklund
Published Oct. 3, 2019

The Overlapping Minnesota and Minneapolis Wage Theft Laws: How to Comply

While the Minneapolis wage theft law mirrors the Minnesota law, it does contain additional requirements. In order to assist employers with compliance with these laws, we have put together a side-by-side comparison of some of the key elements of each.

Shortly after Minnesota passed its wage theft law, the Minneapolis City Council followed by passing a wage theft law of its own.

The requirements of the Minnesota law went into effect July 1, 2019, with the criminal wage theft and sanctions provisions going into effect Aug. 1, 2019.

Meanwhile, the Minneapolis wage theft law will go into effect Jan. 1, 2020, and applies to employees who work at least 80 hours in one year within Minneapolis city limits. The law applies to part-time and temporary workers but does not apply to individuals who attend conferences, conventions, training, educational classes or similar events in the city.

While the Minneapolis wage theft law mirrors the Minnesota law, it does contain additional requirements. In order to assist employers with compliance with these laws, here is a side-by-side comparison of some of the key elements of each.

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Wage Theft: Minnesota vs Minneapolis

Posting Requirements

Although the Minnesota law does not have a posting requirement, the Minneapolis law does.

MinnesotaMinneapolis
NonePosting required in a conspicuous area at any workplace or job site in the city of the posting notice published and made available by the Minneapolis Department of Civil Rights. The posting is required to be in English and any other language spoken by at least 5 percent of the employees at the workplace or job site.

Notice Requirements Pre-Hire

Both Minnesota and Minneapolis wage theft laws require employers to provide notices to new employees at the start of employment. The requirements are a bit different. Under the Minnesota law, if an employee requests the notice be provided in a language other than English, the employer must comply with that request and provide the notice in the requested language.

MinnesotaMinneapolis
• Rate or rates of pay and basis, including whether employee is paid by hour, shift, day, week, salary, piece, commission or other method
• Allowances claimed for permitted meals and lodging
• Paid vacation, sick time or other paid time off accruals and terms of use
• Employee’s employment status and whether the individual is exempt from minimum wage or overtime, and on what basis
• List of deductions from pay
• Number of days in pay period, the regularly scheduled payday, and the pay day on which employee will receive first payment of wages earned
• Legal and operating name of employer
• Physical address of employer’s main office or principal place of business and mailing address, if different
• Employer’s telephone number
• Date employment will start
• Notice of employee’s rights under Minneapolis’ Sick and Safe Time Ordinance, including the date the employee will begin accruing Sick and Safe Time
• Employer’s policy regarding gratuities (if applicable to position)
• Overtime policy applicable to the position, including the rate or rates of pay and when it applies

Notice Requirements to Current Employees

The Minneapolis law requires employers to provide all current employees with the information required on pre-hire notices no later than Jan. 1, 2020. The Minnesota law does not have a similar notice requirement for current employees.

However, the initial notices for Minnesota employees and Minneapolis employees both must be signed by the employee. Employers are also required to provide written notice of any changes to the employees before they take effect. Minneapolis notices of changes must be signed by the employee — this is not required under the Minnesota law.

Earnings Statement Requirements

Current state law already requires earnings statements be provided to employees either in writing or electronically at the end of each pay period.

If the earnings statement is provided electronically, the employer is required to provide employees access to an employer-owned computer during an employee’s regular working hours to review and print earnings statements. Specific information is required to be included in each earnings statement.

However, the new law requires additional information on employee’s earnings statements:

MinnesotaMinneapolis
• Employee name
• Total hours worked in pay period
• Employee’s rate or rates of pay, and basis, including whether employee is paid by hour, shift, week, salary, piece rate, commission or other method
• Allowances claimed for permitted meals and lodging
• Total amount of gross pay earned in the pay period
• Net amount of pay after all deductions are made
• List of deductions from pay
• Date pay period ended
• Employer’s legal and operating name
• Employer’s telephone number
• Physical address of employer’s main office or principal place of business and a mailing address, if different
• All requirements under Minnesota law, plus:
• The number of hours of Sick and Safe Time accrued and unused by the employee

Recordkeeping Requirements

The wage theft laws in Minnesota and Minneapolis bring with them new recordkeeping requirements for employers, as indicated below.

MinnesotaMinneapolis
• Name, address and occupation of each employee
• Rate of pay and amount paid each pay period to each employee
• Hours worked each day and each workweek by the employee, including for piece rate employees, the number of pieces completed at each piece rate
• List of personnel policies provided to employee, including the date the policies were given and a brief description of the policies
• Copy of the notice provided to each employee, including any written changes
• The same requirements under Minnesota law, plus:
• Record of when initial notices are provided to employees.

Both Minnesota and Minneapolis prohibit retaliation against any employee asserting rights or remedies under the laws.

But the Minneapolis law takes this provision a step further, and specifically indicates that unlawful retaliation will be rebuttably presumed if an employer materially changes the terms or conditions of the worker’s employment within 90 days of the employee exercising his or her rights under the law.

Further Details on Minnesota and Minneapolis Wage Theft Laws

Additional information and guidance for both laws can be found at the respective state and city websites:

This Labor Law News Blog is intended for market awareness only; it is not to be used for legal advice or counsel.

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