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Total Articles: 6

Minnesota DLI Issues Updated FAQ on Wage Theft, Other Employer Expectations

In late July 2019, the Minnesota Department of Labor and Industry (DLI) released an update to its FAQ on Minnesota’s new wage theft law, including 37 new questions and answers to further clarify what is expected of employers under the statute. The new FAQ provides important guidance on several key points, while at the same time leaving other important questions unanswered. The following is a summary of several of the most commonly asked questions and DLI’s answers.

Minnesota Legislature Enacts Sweeping Wage Theft Law

The Minnesota Legislature wrapped up its 2019 legislative session with a one-day special session last month that resulted in the passage of an omnibus appropriations bill, the Jobs and Economic Development Omnibus. The legislation includes new and surprising notice and recordkeeping mandates for Minnesota employers and creates new civil and criminal penalties for “wage theft.” In addition, it grants more authority to the Minnesota Department of Labor and Industry (DLI) to enforce compliance with the new statute. Governor Tim Walz signed the bill, which takes effect on July 1, 2019, for some provisions and on August 1, 2019, for certain criminal penalties.

Minnesota and Minneapolis Minimum Wage Rates to Increase on January 1, 2018

Minimum wage rates for most employees in Minnesota will increase on January 1, 2018. Both the state of Minnesota's automatic minimum wage hike and a new minimum wage ordinance for workers in the city of Minneapolis will take effect on that date.

Minneapolis Minimum Wage to Reach $15 an Hour by 2024

All employers in Minneapolis, Minnesota, must pay their employees at least $15.00 an hour by July 1, 2024, under a minimum wage ordinance approved by the Minneapolis City Council on June 30, 2017. The ordinance applies to anyone who works in Minneapolis for any amount of time.

When Paying Accrued "Vacation" at Termination, Labels Don't Matter [Wage & Hour FAQs]

In recent years, I have noticed a movement away from the traditional categories of “vacation” and “sick” leave and holidays to hybrids like PTO, holiday hours, and personal days. While those new categories provide greater flexibility to employees and apparent ease as to record-keeping, they also complicate the question for employers about whether those accrued leave categories have to be paid out when an employee leaves the job. Some states make it easy, like Minnesota. Back in 2007, the Minnesota Supreme Court held in Lee v. Fresenius Medical Care, Inc., that, under Minnesota law, whether benefits like accrued vacation or PTO are due is “wholly contractual.”

Minnesota Minimum Wage Increases Today

In April the Minnesota legislature passed legislation establishing incremental increases to the state minimum wage over the next three years. The first increase takes effect on August 1, 2014. The new minimum wage impacts employers differently. Here are several key provisions and the impact they are expected to have on employers.
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