Updating Wage Postings Employers are required to post a current notice of the applicable federal minimum wage rates and related obligations. Failure to post an updated notice may result in fines of up to $10,000. Updated posters may be downloaded free of charge from the U.S. Department of Labor. View these links: Workplace Posters, elaws FirstStep Poster and Recordkeeping Advisor, and Wage and Hour Division (WHD) - Workplace Posters . Wages Using Payroll Card Accounts Employers are allowed to pay employee wages via payroll card accounts. Employers are not required to use payroll card accounts, even if requested by employees. Payroll debit cards allow an employee’s net pay to be applied to a payroll account. The employee can then use the card to make purchases and withdraw cash at ATMs. Payroll accounts allow wages to be electronically transferred, eliminating the need for check cashing charges. Before using payroll card accounts, employers first must file the required Minnesota Department of Labor and Industry’s registration form found at Payroll Cards in Minnesota. In addition before using payroll card accounts, an employer must provide employees written disclosure, in plain language, of all the employee’s wage payment options. The disclosure must also include certain information, such as fees that would apply. Use of a payroll card account cannot be a condition of hire or of continued employment, and employers may use the accounts only for those employees who voluntarily consent in writing on the disclosure form. The employer must retain the signed disclosure and provide a copy to the employee. Employers must not charge employees any initiation, participation, loading or other fees to receive their wages via payroll card accounts, and payroll card issuers must not impose inactivity or dormancy fees. Also, any allowable fees imposed by the employer or the payroll card issuer that were not disclosed to the employee at the time of providing written consent may not be deducted or charged. The law requires that an employee must be able to withdraw, by a free transaction, wages transferred to the account on the employee’s regular payday. Employers are required to provide employees, upon request, one free transaction history each month. The linking of payroll cards and accounts with credit, including loans against future pay and cash advances, is prohibited. Employers are also prohibited from using personal information generated by an employee’s use or possession of the card or account for any purpose other than processing transactions and administering the account. Employers may continue to pay employees via cash, paycheck and direct deposit. Employees may opt out of direct deposit by written objection to the employer. Employer’s must give employees wishing to switch from payroll card accounts to another payment method a written form on which to indicate the change; the employer has 14 days to implement the new requested method.
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