June 19, 2019
New Law: Wage Theft – What to Know and Do
On June 18, 2019 by Kari Thurlow
Wage theft occurs when employers do not pay their workers what is owed them for the work they have performed. The new Minnesota Wage Theft law that goes into effect on July 1 creates additional protections for workers, including adding criminal penalties for employers who commit wage theft.
What to Know:
It is estimated up to 40,000 Minnesota workers pursue complaints of wage theft each year because they have been denied a fair day’s pay for a fair day’s work. The new law clearly defines wages as salary, earnings and gratuities. It also provides that all commissions earned must be paid at least once every three months on a regular payday. In addition, the new law:
- Requires notice to workers at the start of employment
- Requires employers to keep and maintain records
- Prohibits retaliation and carries a civil penalty for those who do retaliate in addition to other remedies
- Sets minimum criteria for responsible contractor requirements
- Provides enforcement authority to the DLI Commissioner and penalties for violations, including increased penalties for repeated violations
- Requires DLI Commissioner to share enforcement action
- Defines the crime of wage theft and criminal sanctions for wage theft
For more information, see the Summary of Minnesota's new Wage Theft Law.
What to Do:
The Minnesota Department of Labor and Industry has provided guidance for employers on the new Minnesota Wage Theft law. The guidance highlights provisions of the new law that will require employers to review their current policies and practices and take necessary steps to bring those policies and practices into compliance with the requirements of the new law’s provisions.
The guidance covers:
- additional information employers are required to provide employees when they start work
- additional information they will need to provide on earnings statements
- additional records employers are required to maintain.
For more information, see Guidance for employers on Minnesota's new Wage Theft Law.
All provisions of the new law go into effect July 1 except for the provisions that amend Minnesota criminal wage theft and sanctions, which go into effect Aug. 1.
Stay Up to Date:
Sign up for the Minnesota Wage and Hour Bulletin to make sure you stay up to date on the requirements of this new law and other labor standards. Subscribe today.