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Payment upon Separation from Employment
Employees who are fired, discharged, terminated, or laid off
When an employer discharges or lays off an employee, the employer must pay the
employee all wages due within 24 hours of the employee's demand for payment.
Minnesota Stat. 181:13 If the employee was entrusted with the collection, disbursement, or
handling of money or property of the employer, the employer may take ten calendar days
after the separation from employment to audit and adjust the accounts of the employee
before the employee's wages or commissions are paid. Minnesota Stat. 181.14
Employees who quit or resign
When an employee quits, the employer must pay the employee all wages due by the next
regularly scheduled payday. If the next regularly scheduled payday is less than five days
after the employee quits, the employer may pay the employee on the second regularly
schedule payday after the employee quits or within 20 days, whichever is sooner. If the
employee was entrusted with the collection, disbursement, or handling of money or
property of the employer, the employer may take ten calendar days after the separation
from employment to audit and adjust the accounts of the employee before the employee's
wages or commissions are paid. Minnesota Stat. 181.14
Employees who are suspended or resigns due to a labor dispute (strike)
Michigan does not have a law specifically addressing the payment of wages to an
employee who leaves employment due to a labor dispute, however, to ensure compliance
with known laws, an employer should pay employee all wages due by the next regularly
scheduled payday. If the next regularly scheduled payday is less than five days after the
employee quits, the employer may pay the employee on the second regularly schedule
payday after the employee quits or within 20 days, whichever is sooner. Minnesota Stat.
181.14
Employees engaged in transitory labor
When any transitory employment is terminated, either by the completion of the work or by
the discharge or quitting of the employee, an employer must pay wages within 24 hours
and, if not then paid, the employer is required pay the employee's reasonable expenses of
remaining in the camp or elsewhere away from home while awaiting the arrival of payment
of wages or earnings and, if such wages or earnings are not paid within two business
days after the termination of such employment for any cause, the employer is required, in
addition, to pay the employee two times the average amount of the employee's daily
earnings in such employment from the time of the termination of the employment until
payment has been made in full. Transitory employment includes work the construction,
paving, repair, or maintenance of roads or highways, sewers or ditches, clearing land, or
the production of forest products or any other work that requires an employee to change the
employee's place of abode while performing the service required by the employment.
Minnesota Stat. 181.11
Wages in Dispute
If there is a dispute between the employer and the employee as to the amount of wages
due upon separation from employment, the employer must timely pay the undisputed
portion of the amount due. Minnesota Stat. 181.14
Frequency of Wage Payments
Most employers must pay employees at least once per month on regularly scheduled
paydays.
Employers employing any person to labor or perform service on any project of a transitory
nature, such as the construction, paving, repair, or maintenance of roads or highways,
sewers or ditches, clearing land, or the production of forest products or any other work that
requires the employee to change the employee's place of abode, must pay wages at
intervals of not more than 15 days at the place of employment or in close proximity to the
place of employment.
Minnesota Stat. 181:101
All public service corporations (e.g. utilities) doing business within Minnesota must pay
employees wages earned at least twice per month (semimonthly) and within 15 days of
the date of such payment. Minnesota Stat. 181:08
Manner of Payment
An employer may pay wages by
- cash;
- check on banks convertible into cash on demand at full face value;
- direct deposit to the employee's choice of demand deposit account, except for instances
when the employee has objected in writing to payment by direct deposit; or
- with voluntary written consent of the employee, an electronic fund transfer to a payroll card
account which permits the employee, at least once per pay check, to withdraw the entire
amount of net wages due without deduction and that meets all of the requirements of
section 177.255.
Minnesota Stat. 177.23
Direct Deposit
An employer can pay employees by direct deposit, so long as the employee has not
objected in writing to payment by direct deposit. Minnesota Stat. 177.23
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Deductions from Wages
An employer may not deduct or withhold any part of an employee's wages for the following
reasons, unless the employee has voluntarily consented to the deduction after the
following events have occurred or has been held liable in court for the loss or indebtedness:
- cash shortages,
- lost or stolen property,
- damage to property,
- any other claimed indebtedness running from employee to employer.
Minnesota Stat. 181:79; Minn. Admin. Rules 5200.0090
An employer may enter into a written contract with an employee wherein the employee
authorizes the employer to make payroll deductions for the purpose of paying:
- union dues,
- premiums of any life insurance,
- hospitalization and surgical insurance,
- group accident and health insurance,
- group term life insurance,
- group annuities or contributions to credit unions or a community chest fund, a local arts
council, a local science council or a local arts and science council, or Minnesota benefit
association, a federally or state registered political action committee, or
- participation in any employee stock purchase plan or savings plan for periods longer than
60 days, including gopher state bonds.
Minnesota Stat. 181:06
Uniforms, Tools, and Other Equipment Necessary for Employment
An employer may make the following deductions from an employee's wages, so long as
the employee's effective wage rate does not fall below minimum wage:
- purchased or rented uniforms or specially designed clothing required by the employer, by
the nature of the employment, or by statute as a condition of employment, which is not
generally appropriate for use except in that employment, not to exceed $50;
- purchased or rented equipment used in employment, except tools of a trade, a motor
vehicle, or any other equipment which may be used outside the employment, not to exceed
$50;
- consumable supplies required in the course of that employment;
- travel expenses in the course of employment except those incurred in traveling to and
from the employee's residence and place of employment.
An employer must reimburse an employee for the full amount of any of the items listed
when the employee is separated from employment. The employer may require to the
return of the uniform, equipment or other items.
Minnesota Stat. 177:24
Medical or Physical Exams, including Drug Tests, Required for Employment
An employer may not require an employee or applicant to pay the cost of a medical
examination or the cost of furnishing any records required by the employer as a condition of
employment, except certificates of attending physicians in connection with the
administration of an employee's pension and disability benefit plan or citizenship papers or
birth records. Minnesota Stat. 181:61
Notice of Wage Reduction
Minnesota does not have any laws addressing when or how an employer may reduce an
employees wages or whether an employer must provide employees notice prior to
instituting a wage reduction.
Statement of Wages (Pay Stub)
An employer must provide each employee at the end of each pay period, an earnings
statement, either in writing or by electronic means, covering that pay period. The earnings
statement must include:
- the name of the employee;
- the hourly rate of pay (if applicable);
- the total number of hours worked by the employee unless exempt from state minimum
wage laws;
- the total amount of gross pay earned by the employee during that period;
- a list of deductions made from the employee's pay;
- the net amount of pay after all deductions are made;
- the date on which the pay period ends; and
- the legal name of the employer and the operating name of the employer if different from
the legal name.
An employer who chooses to provide an earnings statement by electronic means must
provide employees access to an employer-owned computer during an employee's regular
working hours to review and print earnings statements.
An employer must provide earnings statements to an employee in writing, rather than by
electronic means, if the employer has received at least 24 hours notice from an employee
that the employee would like to receive earnings statements in written form. Once an
employer has received notice from an employee that the employee would like to receive
earnings statements in written form, the employer must comply with that request on an
ongoing basis.
Minnesota Stat. 181:032
Record Keeping Requirements
An employer must make and keep a record, for at least three years, of:
- name, address, Social Security number and occupation;
- rate of pay, deductions (taxes, insurance, union dues, other) and the amount paid each
pay period;
- beginning and ending hours worked each day, including a.m. and p.m. designations, plus
total hours worked each day and each work week;
- a record of free meals accepted;
- proof of age of minors employed:
- copy of birth certificate
- copy of driver's license
- minor's school-issued age certificate
- I-9 form; and
- for any employer performing work on public works projects funded in whole or in part with
state funds, the prevailing wage master job classifications of each employee working on
the project for each hour worked.
Minnesota Stat. 177:30
An employer must maintain, for at least three years, complete and accurate records relating
to migrant workers, including:
- the names of the migrant employees,
- the daily hours worked by each employee,
- the rate of pay for each employee, and
- the wages paid each pay period to each employee.
Minnesota Stat. 181.88
Notice Requirements
Minnesota does not have any laws requiring employers to provide employees, whether at
hire or at any other time, of notice of wage rates, dates of pay, employment policies, fringe
benefits, or other terms and conditions of employment.
Wage Payment Laws for Private Sector Employers
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Topics Covered:
- Frequency of Wage Payments
- Manner of Payments
- Payment upon Separation from Employment
- Employees who are fired, discharged, or terminated
- Employees who quit or resign
- Employees who is suspended or resigns due to a labor dispute (strike)
- Employees who are laid off
- Wages in Dispute
- Cash shortages
- Damage, loss or destruction of employer property
- Dishonored or returned checks
- Uniforms
- Tools and other items necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of Wage Reduction
- Statement of Wages (Pay Stub)
- Record Keeping Requirements
- Notice Requirements