Minnesota Session Laws - 1984, Regular Session

  

                         Laws of Minnesota 1984 

                        CHAPTER 446-H.F.No. 1562
           An act relating to labor; providing for the prompt 
          payment of commissions to commission salespersons who 
          leave or lose their job; providing civil penalties for 
          nonprompt payment; providing that wages can be 
          promptly paid through the mail at the request of the 
          employee or salesperson; amending Minnesota Statutes 
          1982, sections 181.13; and 181.14; proposing new law 
          coded in Minnesota Statutes, chapter 181. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 181.13, is 
amended to read: 
    181.13 [PENALTY FOR FAILURE TO PAY WAGES PROMPTLY.] 
    When any person, firm, company, association, or corporation 
employing labor within this state discharges a servant or 
employee from his employment, the wages or commissions actually 
earned and unpaid at the time of such the discharge shall become 
immediately due and payable upon demand of such the employee, at 
the usual place of payment, and.  If the employee's earned wages 
and commissions are not paid within 24 hours after such demand, 
whether such the employment was by the day, hour, week, month, 
or piece or by commissions, such the discharged employee may 
charge and collect the amount of his or her average daily 
earnings at the rate agreed upon in the contract of employment, 
for such period, not exceeding 15 days, after the expiration of 
the 24 hours, as the employer is in default, until full payment 
or other settlement, satisfactory to the discharged employee, is 
made.  The wages and commissions must be paid at the usual place 
of payment unless the employee requests that the wages and 
commissions be sent to him or her 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.  
    Sec. 2.  Minnesota Statutes 1982, section 181.14, is 
amended to read: 
    181.14 [NOTICE TO BE GIVEN; SETTLEMENT OF DISPUTES.] 
    When any such employee, not having a contract for a 
definite period of service, quits or resigns his or her 
employment, the wages or commissions earned and unpaid at the 
time of such quitting or resignation the employee quits or 
resigns shall become due and payable within five days thereafter 
, at the usual place of payment, and.  Any such employer failing 
or refusing to pay such wages or commissions, after they so 
become due, upon the demand of such the employee, at such place 
of payment, shall be liable to such the employee from the date 
of such the demand for an additional sum equal to the amount of 
his the employee's average daily earnings provided in the 
contract of employment, for every day, not exceeding 15 days in 
all, until such payment or other settlement satisfactory to the 
employee is made; provided, that.  If any employee having such a 
contract gives not less than five days' written notice to his 
the employer of his or her intention to quit such employment, 
the wages or commissions of the employee giving such notice may 
be demanded and shall become due at the usual place of payment 
24 hours after he so the employee quits or resigns and payment 
thereof may be demanded accordingly, and the penalty herein 
provided shall apply in such case from the date of such demand; 
provided, that.  If the employer disputes the amount of wages or 
commissions claimed by such the employee under the provisions of 
this section or section 181.13, and the employer in such case 
makes a legal tender of the amount which he the employer in good 
faith claims to be due, he 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, such the employee recovers a greater sum 
than the amount so tendered with such interest thereon; and if, 
in such the suit, the employee fails to recover a greater sum 
than that so tendered, with interest as aforesaid, he the 
employee shall pay the cost of such the suit, otherwise the cost 
thereof shall be paid by the employer;  provided, that.  In 
cases where such the discharged or quitting employee was, during 
his or her employment, entrusted with the collection, 
disbursement, or handling of money or property, the employer 
shall have ten secular days after the termination of the 
employment to audit and adjust the accounts of such the employee 
before his the employee's wages or commissions shall become due 
and payable, and the penalty herein provided shall apply in such 
case only from the date of demand made after the expiration of 
such the period allowed for such audit and adjustment; and.  
If, upon such audit and adjustment of the accounts of such the 
employee, it is found that any money or property entrusted to 
him the employee by his the employer has not been properly 
accounted for or paid over to the employer, as provided by the 
terms of the contract of employment, such the employee shall not 
be entitled to the benefit of sections 181.13 to 181.17, but the 
claim for unpaid wages or commissions of such employee, if any, 
shall be disposed of as provided by existing law.  Wages and 
commissions paid under this section shall be paid at the usual 
place of payment unless the employee requests that the wages and 
commissions be sent to him or her 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.  
    Sec. 3.  [181.145] [PROMPT PAYMENT OF COMMISSIONS TO 
COMMISSION SALESPERSONS.] 
    Subdivision 1.  [DEFINITIONS.] For the purposes of this 
section, "commission salesperson" means a person who is paid on 
the basis of commissions for sales and who is not covered by 
sections 181.13 and 181.14 because he or she is an independent 
contractor.  For the purposes of this section, the phrase 
"commissions earned through the last day of employment" means 
commissions due for services or merchandise which have actually 
been delivered to and accepted by the customer by the final day 
of the salesperson's employment.  
    Subd. 2.  [PROMPT PAYMENT REQUIRED.] (a) When any person, 
firm, company, association, or corporation employing a 
commission salesperson in this state terminates the salesperson, 
or when the salesperson resigns his or her position, the 
employer shall promptly pay the salesperson, at the usual place 
of payment, his or her commissions earned through the last day 
of employment or be liable to the salesperson for the penalty 
provided under subdivision 3 in addition to any earned 
commissions unless the employee requests that the commissions be 
sent to him or her through the mails.  If, in accordance with a 
request by the employee, the employee's commissions are sent to 
the employee through the mail, the commissions shall be deemed 
to have been paid as of the date of their postmark for the 
purposes of this section.  
    (b) If the employer terminates the salesperson or if the 
salesperson resigns giving at least five days written notice, 
the employer shall pay the salesperson's commissions earned 
through the last day of employment on demand no later than three 
working days after the salesperson's last day of work.  
    (c) If the salesperson resigns without giving at least five 
days written notice, the employer shall pay the salesperson's 
commissions earned through the last day of employment on demand 
no later than six working days after the salesperson's last day 
of work.  
    (d) Notwithstanding the provisions of paragraphs (b) and 
(c), if the terminated or resigning salesperson was, during his 
or her employment, entrusted with the collection, disbursement, 
or handling of money or property, the employer has ten working 
days after the termination of employment to audit and adjust the 
accounts of the salesperson before the salesperson can demand 
his or her commissions earned through the last day of 
employment.  In such cases, the penalty provided in subdivision 
3 shall apply only from the date of demand made after the 
expiration of the ten working day audit period.  
    Subd. 3.  [PENALTY FOR NONPROMPT PAYMENT.] If the employer 
fails to pay the salesperson his or her commissions earned 
through the last day of employment on demand within the 
applicable period as provided under subdivision 2, the employer 
shall be liable to the salesperson, in addition to his or her 
earned commissions, for a penalty for each day, not exceeding 15 
days, which the employer is late in making full payment or 
satisfactory settlement to the salesperson for the commissions 
earned through the last day of employment.  The daily penalty 
shall be in an amount equal to one-fifteenth of the 
salesperson's commissions earned through the last day of 
employment which are still unpaid at the time that the penalty 
will be assessed.  
    Subd. 4.  [AMOUNT OF COMMISSION DISPUTED.] (a) When there 
is a dispute concerning the amount of the salesperson's 
commissions earned through the last day of employment or whether 
the employer has properly audited and adjusted the salesperson's 
account, the penalty provided in subdivision 3 shall not apply 
if the employer pays the amount it in good faith believes is 
owed the salesperson for commissions earned through the last day 
of employment within the applicable period as provided under 
subdivision 2; except that, if the dispute is later adjudicated 
and it is determined that the salesperson's commissions earned 
through the last day of employment were greater than the amount 
paid by the employer, the penalty provided in subdivision 3 
shall apply.  
    (b) If a dispute under this subdivision is later 
adjudicated and it is determined that the salesperson was not 
promptly paid commissions earned through the last day of 
employment as provided under subdivision 2, the employer shall 
pay reasonable attorney's fees incurred by the salesperson. 
    Subd. 5.  [COMMISSIONS EARNED AFTER LAST DAY OF 
EMPLOYMENT.] Nothing in this section shall be construed to 
impair a commission salesperson from collecting commissions on 
merchandise ordered prior to the last day of employment but 
delivered and accepted after termination of employment. However, 
the penalties prescribed in subdivision 3 apply only with 
respect to the payment of commissions earned through the last 
day of employment. 
    Approved April 23, 1984