HF 689

1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to employment; modifying provisions 
  1.3             regulating payment of wages; prohibiting employers 
  1.4             from charging for background checks and certain 
  1.5             training; amending Minnesota Statutes 1998, sections 
  1.6             181.14; 181.145, subdivisions 1, 2, and 3; and 181.87, 
  1.7             subdivision 2; proposing coding for new law in 
  1.8             Minnesota Statutes, chapter 181; repealing Minnesota 
  1.9             Statutes 1998, section 181.13. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1998, section 181.14, is 
  1.12  amended to read: 
  1.13     181.14 [PAYMENT TO EMPLOYEES WHO QUIT OR RESIGN PENALTY FOR 
  1.14  FAILURE TO PAY WAGES PROMPTLY; SETTLEMENT OF DISPUTES.] 
  1.15     Subdivision 1.  [PROMPT PAYMENT REQUIRED.] (a) Except as 
  1.16  otherwise provided in section 181.11, 181.145, or 181.87, when 
  1.17  any such employee quits or, resigns, or is discharged from 
  1.18  employment, the wages or commissions earned and unpaid at the 
  1.19  time the employee quits or, resigns, or is discharged shall be 
  1.20  paid in full not later than the first regularly scheduled payday 
  1.21  following the employee's final day of employment, unless an 
  1.22  employee is subject to a collective bargaining agreement with a 
  1.23  different provision.  If the first regularly scheduled payday is 
  1.24  less than five calendar days following the employee's final day 
  1.25  of employment, full payment may be delayed until the second 
  1.26  regularly scheduled payday but shall not exceed a total of 20 
  1.27  calendar days following the employee's final day of employment. 
  2.1      (b) Notwithstanding the provisions of paragraph (a), in the 
  2.2   case of migrant workers, as defined in section 181.85, the wages 
  2.3   or commissions earned and unpaid at the time the employee quits 
  2.4   or resigns shall become due and payable within five days 
  2.5   thereafter. 
  2.6      Subd. 2.  [NONPROMPT PAYMENT.] Wages or commissions not 
  2.7   paid within the required time period shall become immediately 
  2.8   payable upon the demand of the employee.  If the employee's 
  2.9   earned wages or commissions are not paid within 24 hours after 
  2.10  the demand, the employer shall be liable to the employee for an 
  2.11  additional sum equal to the amount of the employee's average 
  2.12  daily earnings provided in the contract of employment, for every 
  2.13  day, not exceeding 15 days in all, until such payment or other 
  2.14  settlement satisfactory to the employee is made.  
  2.15     Subd. 3.  [SETTLEMENT OF DISPUTES.] If the employer 
  2.16  disputes the amount of wages or commissions claimed by the 
  2.17  employee under the provisions of this section or section 181.13, 
  2.18  and the employer makes a legal tender of the amount which the 
  2.19  employer in good faith claims to be due, the employer shall not 
  2.20  be liable for any sum greater than the amount so tendered and 
  2.21  interest thereon at the legal rate, unless, in an action brought 
  2.22  in a court having jurisdiction, the employee recovers a greater 
  2.23  sum than the amount so tendered with interest thereon; and if, 
  2.24  in the suit, the employee fails to recover a greater sum than 
  2.25  that so tendered, with interest, the employee shall pay the cost 
  2.26  of the suit, otherwise the cost shall be paid by the employer. 
  2.27     Subd. 4.  [EMPLOYEES ENTRUSTED WITH MONEY OR PROPERTY.] In 
  2.28  cases where the discharged or quitting employee was, during 
  2.29  employment, entrusted with the collection, disbursement, or 
  2.30  handling of money or property, the employer shall have ten 
  2.31  calendar days after the termination of the employment to audit 
  2.32  and adjust the accounts of the employee before the employee's 
  2.33  wages or commissions shall be paid as provided in this section, 
  2.34  and the penalty herein provided shall apply in such case only 
  2.35  from the date of demand made after the expiration of the period 
  2.36  allowed for payment of the employee's wages or commissions.  If, 
  3.1   upon such audit and adjustment of the accounts of the employee, 
  3.2   it is found that any money or property entrusted to the employee 
  3.3   by the employer has not been properly accounted for or paid over 
  3.4   to the employer, as provided by the terms of the contract of 
  3.5   employment, the employee shall not be entitled to the benefit of 
  3.6   sections 181.13 181.14 to 181.171, but the claim for unpaid 
  3.7   wages or commissions of such employee, if any, shall be disposed 
  3.8   of as provided by existing law. 
  3.9      Subd. 5.  [PLACE OF PAYMENT.] Wages and commissions paid 
  3.10  under this section shall be paid at the usual place of payment 
  3.11  unless the employee requests that the wages and commissions be 
  3.12  sent to the employee through the mails.  If, in accordance with 
  3.13  a request by the employee, the employee's wages and commissions 
  3.14  are sent to the employee through the mail, the wages and 
  3.15  commissions shall be deemed to have been paid as of the date of 
  3.16  their postmark for the purposes of this section. 
  3.17     Sec. 2.  Minnesota Statutes 1998, section 181.145, 
  3.18  subdivision 1, is amended to read: 
  3.19     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  3.20  section, "commission salesperson" means a person who is paid on 
  3.21  the basis of commissions for sales and who is not covered by 
  3.22  sections 181.13 and section 181.14 because the person is an 
  3.23  independent contractor.  For the purposes of this section, the 
  3.24  phrase "commissions earned through the last day of employment" 
  3.25  means commissions due for services or merchandise which have 
  3.26  actually been delivered to and accepted by the customer by the 
  3.27  final day of the salesperson's employment.  
  3.28     Sec. 3.  Minnesota Statutes 1998, section 181.145, 
  3.29  subdivision 2, is amended to read: 
  3.30     Subd. 2.  [PROMPT PAYMENT REQUIRED UPON RESIGNATION OR 
  3.31  TERMINATION.] (a) When any Payment of commissions earned through 
  3.32  the last day of employment to the commission salesperson shall 
  3.33  be made in the same manner as payment of commissions earned 
  3.34  prior to the resignation or termination.  A person, firm, 
  3.35  company, association, or corporation employing a commission 
  3.36  salesperson in this state terminates the salesperson, or when 
  4.1   the salesperson resigns that position, the employer shall 
  4.2   promptly pay the salesperson, at the usual place of payment, 
  4.3   commissions earned through the last day of employment or be 
  4.4   liable to the salesperson for the penalty provided under 
  4.5   subdivision 3 in addition to any earned commissions unless the 
  4.6   employee requests that the commissions be sent to the employee 
  4.7   through the mails.  If, in accordance with a request by the 
  4.8   employee, the employee's commissions are sent to the employee 
  4.9   through the mail, the commissions shall be deemed to have been 
  4.10  paid as of the date of their postmark for the purposes of this 
  4.11  section may not alter the method of payment, timing of payment, 
  4.12  or procedures for payment of commissions after the employee or 
  4.13  salesperson has resigned or been terminated.  
  4.14     (b) If the employer terminates the salesperson or if the 
  4.15  salesperson resigns giving at least five days' written notice, 
  4.16  the employer shall pay the salesperson's commissions earned 
  4.17  through the last day of employment on demand no later than three 
  4.18  working days after the salesperson's last day of work.  
  4.19     (c) If the salesperson resigns without giving at least five 
  4.20  days' written notice, the employer shall pay the salesperson's 
  4.21  commissions earned through the last day of employment on demand 
  4.22  no later than six working days after the salesperson's last day 
  4.23  of work.  
  4.24     (d) Notwithstanding the provisions of paragraphs (b) and 
  4.25  (c), If the terminated or resigning salesperson was, during 
  4.26  employment, entrusted with the collection, disbursement, or 
  4.27  handling of money or property, the employer has ten working days 
  4.28  after the termination of employment to audit and adjust the 
  4.29  accounts of the salesperson before the salesperson can demand 
  4.30  commissions earned through the last day of employment.  In such 
  4.31  cases, the penalty provided in subdivision 3 shall apply only 
  4.32  from the date of demand made after the expiration of the ten 
  4.33  working day audit period.  If during the ten working days of 
  4.34  audit, the payment of commissions would have normally been due, 
  4.35  then the employer will have an additional ten working days 
  4.36  within which to pay commissions earned. 
  5.1      Sec. 4.  Minnesota Statutes 1998, section 181.145, 
  5.2   subdivision 3, is amended to read: 
  5.3      Subd. 3.  [PENALTY FOR NONPROMPT PAYMENT.] If the employer 
  5.4   fails to pay the salesperson commissions earned through the last 
  5.5   day of employment on demand within the applicable period as 
  5.6   provided under subdivision 2, the employer shall be liable to 
  5.7   the salesperson, in addition to earned commissions, for a 
  5.8   penalty for each day, not exceeding 15 days, which the employer 
  5.9   is late in making full payment or satisfactory settlement to the 
  5.10  salesperson for the commissions earned through the last day of 
  5.11  employment.  The daily penalty shall be in is an amount equal to 
  5.12  1/15 of the salesperson's commissions earned through the last 
  5.13  day of employment which are still remain unpaid at the time that 
  5.14  the penalty will be assessed.  This daily penalty shall not 
  5.15  exceed 15 days. 
  5.16     Sec. 5.  [181.645] [EXPENSES FOR BACKGROUND CHECKS AND 
  5.17  TRAINING.] 
  5.18     An employer, as defined in section 181.931, or a 
  5.19  prospective employer may not require an employee or job 
  5.20  applicant to pay for expenses incurred in criminal or background 
  5.21  checks, credit checks, testing of any sort, orientation, or 
  5.22  required training, except when that training is required in 
  5.23  order to obtain or maintain a license for the employee. 
  5.24     Sec. 6.  Minnesota Statutes 1998, section 181.87, 
  5.25  subdivision 2, is amended to read: 
  5.26     Subd. 2.  [BIWEEKLY PAY.] The employer shall pay wages due 
  5.27  to the migrant worker at least every two weeks, except on 
  5.28  termination, when the employer shall pay within three days 24 
  5.29  hours.  
  5.30     Sec. 7.  [REPEALER.] 
  5.31     Minnesota Statutes 1998, section 181.13, is repealed.