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.
OVERTIME PAY REQUIREMENTS
Federal Overtime Pay Requirements The Federal act requires that covered non-exempt employees receive overtime pay at a rate of one and one-half times their regular rate of pay after 40 hours of work in a workweek. Exemptions from the federal overtime pay requirements are addressed above. A workweek is a period of 168 hours during seven consecutive 24-hour periods. It may begin on any day of the week and any hour of the day established by the employer, but the established workweek must remain consistent. For purposes of computing overtime pay, each workweek stands alone; there can be no averaging of two or more workweeks (except for hospital or nursing home employees on an “8 and 80”). Overtime pay must be based on the regular rate. Generally, the regular rate includes all payments made by the employer to or on behalf of the employee (i.e., non-discretionary bonuses, incentive pay, shift differentials), although some statutory exceptions may apply. To calculate the regular rate, divide all pay received by all hours worked in the work week.
148
Made with FlippingBook - Online Brochure Maker