A Guide To STARTING A BUSINESS IN MINNESOTA 42nd Ed 2024

Criminal Wage Theft. (Minn. Stat. § 609.52). The new law defines “wage theft” as not paying an employee the agreed upon wage, earning, or commissions, directly or indirectly causing an employee to give a receipt for an amount more than was paid, directly or indirectly demanding or receiving a rebate or refund for money that was not due, or where the employer attempts to show greater payment to an employee than was actually paid. The punishment for criminal wage theft varies greatly. Penalties range from up to $100,000 in fines and no more than 20 years in prison, to no more than one year in prison and a $3,000 fine, depending on the amount at issue. When determining damages, the law allows the wages to be aggregated for up to six months. Retaliation (Minn. Stat. § 181.03). The new law has non-retaliation protections. An employer who retaliates against employees for asserting rights or remedies under Minnesota’s wage and hour laws may be fined $700 - $3,000 for each violation. Retainage (Minn. Stats. §§ 15.72 and 337.10). Changes to Minnesota laws affecting construction in 2019, the legislature incorporated changes to retainage requirements for both public and private projects in Minnesota. Contact the Minnesota Department of Labor and Industry for specific information. ADDITIONAL MINNESOTA REQUIREMENTS As referenced above, the Minnesota Legislature this past year amended existing state labor laws and created significant new notice and recordkeeping requirements, recognized "wage theft", and imposed serious civil and criminal penalties for violations. This applies to all companies and organizations with Minnesota-based employees. The new legislation also allows the Commissioner of the Minnesota Department of Labor and Industry (DLI) to enter the places of business of employers, during working hours, to investigate potential violations. The investigation authority includes the ability to collect various evidence or potential violations and to interview witnesses. The purpose of this new law is to create greater transparency and clarity of payment calculations for employees, especially those who are overtime-eligible. With this new law, employers must provide employees with information regarding components of their compensation, overtime eligibility status, timing of wage payments, potential deductions from pay, and company contact information. The Minnesota Department of Labor and Industry provides an excellent series of guidance documents, a question and answer page and sample notice forms businesses can use to comply with these changes. Employers should familiarize themselves with the requirements in full to ensure compliance. Minnesota Department of Labor and Industry resources can be found at (1) Wage Theft Law, (2) Guidance for employers on Minnesota’s new Wage Theft Law, (3) Wage Theft Q & A, and (4) For Employers: Summary of Minnesota's new Wage Theft Law, (5) Employee Wage Notice Examples; Notice (PDF) and Notice (DOCX) .

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