Minnesota Wage Payment Laws
- Frequency of wage payments
- Manner of wage payments
- Direct deposit
- Payment upon separation from employment
- Wage in dispute
- Deductions from wages
- Uniforms, tools, and other equipment necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of wage reduction
- Statement of wages (pay stubs)
- Record keeping requirements
- Notice requirements
Frequency of Wage Payments
Most employers must pay employees at least one (1) time 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 fifteen (15) days at the place of employment or in close proximity to the place of employment.
All public service corporations (e.g. utilities) doing business within Minnesota must pay employees wages earned at least twice per month (semimonthly) and within fifteen (15) days of the date of such payment. Minnesota Stat. 181:08
Manner of Wage Payments
An employer may pay wages by
- 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 Minnesota Stat. 177.255.
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
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
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.
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.
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.
Pre-hire Medical, Physical, or Drug Tests
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.
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, or
- 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.
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 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.