Minnesota Legislature
SF 602
2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 04/17/2013 08:33am
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A bill for an act
relating to employment; modifying prompt payment of wages requirements;
modifying penalties; amending Minnesota Statutes 2012, sections 181.13; 181.14.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 181.13, is amended to read:
181.13 PENALTY FOR FAILURE TO PAY WAGES PROMPTLY.
(a) When any employer employing labor within this state discharges an employee,
the wages or commissions actually earned and unpaid at the time of the discharge are
immediately due and payable upon demand of the employee. new text begin Wages are actually earned
and unpaid if the employee was not paid for all time worked at the employee's regular rate
of pay or at the rate required by law, including any applicable statute, regulation, rule,
ordinance, government resolution or policy, contract, or other legal authority, whichever
rate of pay is greater. new text end If the employee's earned wages and commissions are not paid within
24 hours after demand, whether the employment was by the day, hour, week, month, or
piece or by commissions, the employer is in default. new text begin In addition to recovering the wages
and commissions actually earned and unpaid,new text end the discharged employee may charge and
collectnew text begin a penalty equal tonew text end the amount of the employee's average daily earnings at thedeleted text begin rate
agreed upon in the contract of employment,deleted text end new text begin employee's regular rate of pay or the rate
required by law, whichever rate is greater, new text end for each day up to 15 days, that the employer is
in default, until full payment or other settlement, satisfactory to the discharged employee,
is made. In the case of a public employer where approval of expenditures by a governing
board is required, the 24-hour period for payment does not commence until the date of
the first regular or special meeting of the governing board following discharge of the
employee.new text begin An employee's demand for payment under this section must be in writing
but need not state the precise amount of unpaid wages or commissions. An employee
may directly seek and recover payment from an employer under this section even if the
employee is not a party to a contract that requires the employer to pay the employee at the
rate of pay demanded by the employee, so long as the contract or any applicable statute,
regulation, rule, ordinance, government resolution or policy, or other legal authority
requires payment to the employee at the particular rate of pay. The employee shall be able
to directly seek payment at the highest rate of pay provided in the contract or applicable
law, and any other related remedies as provided in this section.
new text end
(b) The wages and commissions must be paid deleted text begin atdeleted text end new text begin innew text end the usual deleted text begin placedeleted text end new text begin mannernew text end of
payment unless the employee requests that the wages and commissions be sent through
the mails. If, in accordance with a request by the employee, the employee's wages and
commissions are sent to the employee through the mail, the wages and commissions
are paid as of the date of their postmark.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2012, section 181.14, is amended to read:
181.14 PAYMENT TO EMPLOYEES WHO QUIT OR RESIGN;
SETTLEMENT OF DISPUTES.
Subdivision 1.
Prompt payment required.
(a) When any such employee quits
or resigns employment, the wages or commissions earned and unpaid at the time the
employee quits or resigns shall be paid in full not later than the first regularly scheduled
payday following the employee's final day of employment, unless an employee is subject
to a collective bargaining agreement with a different provision. new text begin Wages are earned and
unpaid if the employee was not paid for all time worked at the employee's regular rate
of pay or at the rate required by law, including any applicable statute, regulation, rule,
ordinance, government resolution or policy, contract, or other legal authority, whichever
rate of pay is greater. new text end If the first regularly scheduled payday is less than five calendar days
following the employee's final day of employment, full payment may be delayed until
the second regularly scheduled payday but shall not exceed a total of 20 calendar days
following the employee's final day of employment.
(b) Notwithstanding the provisions of paragraph (a), in the case of migrant workers,
as defined in section 181.85, the wages or commissions earned and unpaid at the time the
employee quits or resigns shall become due and payable within five days thereafter.
Subd. 2.
Nonprompt payment.
Wages or commissions not paid within the required
time period shall become immediately payable upon the demand of the employee. If the
employee's earned wages or commissions are not paid within 24 hours after the demand,
the employer shall be liable to the employee for deleted text begin an additional sumdeleted text end new text begin a penaltynew text end equal to the
amount of the employee's average daily earnings deleted text begin provided in the contract of employment,
deleted text end new text begin at the employee's regular rate of pay or the rate required by law, whichever rate is greater,
new text end for every day, not exceeding 15 days in all, until such payment or other settlement
satisfactory to the employee is made.new text begin The employer shall also be liable to the employee
for the amount of wages and commissions that are earned and unpaid. An employee's
demand for payment under this section must be in writing but need not state the precise
amount of unpaid wages or commissions. An employee may directly seek and recover
payment from an employer under this section even if the employee is not a party to a
contract that requires the employer to pay the employee at the rate of pay demanded by the
employee, so long as the contract or any applicable statute, regulation, rule, ordinance,
government resolution or policy, or other legal authority requires payment to the employee
at the particular rate of pay. The employee shall be able to directly seek payment at the
highest rate of pay provided in the contract or applicable law, and any other remedies
related thereto as provided in this section.
new text end
Subd. 3.
Settlement of disputes.
If the employer disputes the amount of wages
or commissions claimed by the employee under the provisions of this section or section
181.13, and the employer makes a legal tender of the amount which the employer in
good faith claims to be due, the employer shall not be liable for any sum greater than the
amount so tendered and interest thereon at the legal rate, unless, in an action brought in
a court having jurisdiction, the employee recovers a greater sum than the amount so
tendered with interest thereon; and if, in the suit, the employee fails to recover a greater
sum than that so tendered, with interest, the employee shall new text begin not new text end pay the cost of the suit,
otherwise the cost shall be paid by the employer.
Subd. 4.
Employees entrusted with money or property.
In cases where the
discharged or quitting employee was, during employment, entrusted with the collection,
disbursement, or handling of money or property, the employer shall have ten calendar days
after the termination of the employment to audit and adjust the accounts of the employee
before the employee's wages or commissions shall be paid as provided in this section,
and the penalty herein provided shall apply in such case only from the date of demand
made after the expiration of the period allowed for payment of the employee's wages or
commissions. deleted text begin If, upon such audit and adjustment of the accounts of the employee, it is
found that any money or property entrusted to the employee by the employer has not been
deleted text end deleted text begin properly accounted for or paid over to the employer, as provided by the terms of the
contract of employment, the employee shall not be entitled to the benefit of sections 181.13
to 181.171, but the claim for unpaid wages or commissions of such employee, if any, shall
be disposed of as provided by existing lawdeleted text end new text begin No employer shall make any deduction, directly
or indirectly, from the wages due or earned by any employee, who is not an independent
contractor, for lost or stolen property, damage to property, or to recover any other claimed
indebtedness running from employee to employer, except as permitted by section 181.79new text end .
Subd. 5.
Place of payment.
Wages and commissions paid under this section shall
be paid deleted text begin atdeleted text end new text begin innew text end the usual deleted text begin placedeleted text end new text begin mannernew text end of payment unless the employee requests that the
wages and commissions be sent to the employee through the mails. If, in accordance
with a request by the employee, the employee's wages and commissions are sent to the
employee through the mail, the wages and commissions shall be deemed to have been
paid as of the date of their postmark for the purposes of this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end