Office of the Revisor of Statutes
Minnesota Session Laws - 1996, Regular Session
Key: (1) language to be deleted (2) new language
KEY: stricken = old language to be removed
underscored = new language to be added
CHAPTER 386-H.F.No. 2841
An act relating to employment; modifying provisions
regarding minimum wages; increasing penalties;
modifying employer liability provisions; imposing a
penalty; changing inclusions in earnings statement;
amending Minnesota Statutes 1994, sections 177.27,
subdivisions 2, 4, and by adding subdivisions; 177.30;
181.02; 181.03; 181.031; and 181.032; proposing coding
for new law in Minnesota Statutes, chapter 181;
repealing Minnesota Statutes 1994, sections 177.27,
subdivision 6; 177.33; and 181.17.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1994, section 177.27,
subdivision 2, is amended to read:
Subd. 2. [SUBMISSION OF RECORDS; PENALTY.] The
commissioner may require the employer of employees working in
the state to submit to the commissioner photocopies, certified
copies, or, if necessary, the originals of employment records
which the commissioner deems necessary or appropriate. The
records which may be required include full and correct
statements in writing, including sworn statements by the
employer, containing information relating to wages, hours,
names, addresses, and any other information pertaining to the
employer's employees and the conditions of their employment as
the commissioner deems necessary or appropriate.
The commissioner may require the records to be submitted by
certified mail delivery or, if necessary, by personal delivery
by the employer or a representative of the employer, as
authorized by the employer in writing.
The commissioner may fine the employer up to $200 $1,000
for each failure to submit or deliver records as required by
this section. This penalty is in addition to any penalties
provided under section 177.32, subdivision 1. In determining
the amount of a civil penalty under this subdivision, the
appropriateness of such penalty to the size of the employer's
business and the gravity of the violation shall be considered.
Sec. 2. Minnesota Statutes 1994, section 177.27,
subdivision 4, is amended to read:
Subd. 4. [COMPLIANCE ORDERS.] The commissioner may issue
an order requiring an employer to comply with sections 177.21 to
177.35, 181.02, 181.03, 181.031, 181.032, 181.101, 181.11,
181.12, 181.13, 181.14, 181.145, 181.15, and 181.79, or with any
rule promulgated under section 177.28. The department shall
serve the order upon the employer or the employer's authorized
representative in person or by certified mail at the employer's
place of business. An employer who wishes to contest the order
must file written notice of objection to the order with the
commissioner within ten 15 calendar days after being served with
the order. A public hearing contested case proceeding must then
be held in accordance with sections 14.57 to 14.69. If, within
15 calendar days after being served with the order, the employer
fails to file a written notice of objection with the
commissioner, the order becomes a final order of the
commissioner.
Sec. 3. Minnesota Statutes 1994, section 177.27, is
amended by adding a subdivision to read:
Subd. 7. [EMPLOYER LIABILITY.] If an employer is found by
the commissioner to have violated a section identified in
subdivision 4, or any rule adopted under section 177.28, and the
commissioner issues an order to comply, the commissioner shall
order the employer to cease and desist from engaging in the
violative practice and to take such affirmative steps that in
the judgment of the commissioner will effectuate the purposes of
the section or rule violated. The commissioner shall order the
employer to pay to the aggrieved parties back pay, gratuities,
and compensatory damages, less any amount actually paid to the
employee by the employer, and for an additional equal amount as
liquidated damages. Any employer who is found by the
commissioner to have repeatedly or willfully violated a section
or sections identified in subdivision 4 shall be subject to a
civil penalty of up to $1,000 for each violation for each
employee. In determining the amount of a civil penalty under
this subdivision, the appropriateness of such penalty to the
size of the employer's business and the gravity of the violation
shall be considered. In addition, the commissioner may order
the employer to reimburse the department and the attorney
general for all appropriate litigation and hearing costs
expended in preparation for and in conducting the contested case
proceeding, unless payment of costs would impose extreme
financial hardship on the employer. If the employer is able to
establish extreme financial hardship, then the commissioner may
order the employer to pay a percentage of the total costs that
will not cause extreme financial hardship. Costs include but
are not limited to the costs of services rendered by the
attorney general, private attorneys if engaged by the
department, administrative law judges, court reporters, and
expert witnesses as well as the cost of transcripts. Interest
shall accrue on, and be added to, the unpaid balance of a
commissioner's order from the date the order is signed by the
commissioner until it is paid, at an annual rate provided in
section 549.09, subdivision 1, paragraph (c). The commissioner
may establish escrow accounts for purposes of distributing
damages.
Sec. 4. Minnesota Statutes 1994, section 177.27, is
amended by adding a subdivision to read:
Subd. 8. [COURT ACTIONS; SUITS BROUGHT BY PRIVATE
PARTIES.] An employee may bring a civil action seeking redress
for a violation or violations of sections 177.21 to 177.35
directly to district court. An employer who pays an employee
less than the wages and overtime compensation to which the
employee is entitled under sections 177.21 to 177.35 is liable
to the employee for the full amount of the wages, gratuities,
and overtime compensation, less any amount the employer is able
to establish was actually paid to the employee and for an
additional equal amount as liquidated damages. In addition, in
an action under this subdivision the employee may seek damages
and other appropriate relief provided by subdivision 7 and
otherwise provided by law. An agreement between the employee
and the employer to work for less than the applicable wage is
not a defense to the action.
Sec. 5. Minnesota Statutes 1994, section 177.27, is
amended by adding a subdivision to read:
Subd. 9. [DISTRICT COURT JURISDICTION.] Any action brought
under subdivision 8 may be filed in the district court of the
county wherein a violation or violations of sections 177.21 to
177.35 are alleged to have been committed, where the respondent
resides or has a principal place of business, or any other court
of competent jurisdiction. The action may be brought by one or
more employees.
Sec. 6. Minnesota Statutes 1994, section 177.27, is
amended by adding a subdivision to read:
Subd. 10. [ATTORNEY'S FEES AND COSTS.] In any action
brought pursuant to subdivision 8, the court shall order an
employer who is found to have committed a violation or
violations of sections 177.21 to 177.35 to pay to the employee
or employees reasonable costs, disbursements, witness fees, and
attorney fees.
Sec. 7. Minnesota Statutes 1994, section 177.30, is
amended to read:
177.30 [KEEPING RECORDS; PENALTY.]
Every employer subject to sections 177.21 to 177.35 must
make and keep a record of:
(1) the name, address, and occupation of each employee;
(2) the rate of pay, and the amount paid each pay period to
each employee;
(3) the hours worked each day and each workweek by the
employee; and
(4) other information the commissioner finds necessary and
appropriate to enforce sections 177.21 to 177.35. The records
must be kept for three years in or near the premises where an
employee works.
The commissioner may fine an employer up to $200 $1,000 for
each failure to maintain records as required by this section.
This penalty is in addition to any penalties provided under
section 177.32, subdivision 1. In determining the amount of a
civil penalty under this subdivision, the appropriateness of
such penalty to the size of the employer's business and the
gravity of the violation shall be considered.
Sec. 8. Minnesota Statutes 1994, section 181.02, is
amended to read:
181.02 [SALARY OR WAGES NOT TO BE PAID BY NONNEGOTIABLE
INSTRUMENTS.]
It shall be unlawful for any person, firm, or corporation,
other than public service corporations, to issue to any employee
in lieu of or in payment of any salary or wages earned by such
employee a nonnegotiable time check or order. Any person, firm,
or corporation so issuing a nonnegotiable instrument in lieu of
or in payment of such salary or wages earned shall be guilty of
a misdemeanor.
Sec. 9. Minnesota Statutes 1994, section 181.03, is
amended to read:
181.03 [CERTAIN ACTS RELATING TO PAYMENT OF WAGES
UNLAWFUL.]
Any A person, firm, corporation, or association who or
which may not, directly or indirectly and with intent to
defraud, causes cause any employee to give a receipt for wages
for a greater amount than that actually paid to the employee for
services rendered or directly or indirectly demands or receives
demand or receive from any employee any rebate or refund from
the wages to which the employee is entitled under contract of
employment with such employer, or in any manner makes or
attempts make or attempt to make it appear that the wages paid
to any employee were greater than the amount actually paid to
the employee shall be guilty of a misdemeanor.
Sec. 10. Minnesota Statutes 1994, section 181.031, is
amended to read:
181.031 [EMPLOYERS NOT TO ACCEPT CONSIDERATION FOR SECURING
EMPLOYMENT.]
Any An employer, or any manager, superintendent, lead
supervisor, or other representative of any an employer, who may
not, directly or indirectly, demands or accepts demand or accept
from any employee any part of such employee's wages or other
consideration, or any gratuity, in consideration of giving to or
securing, or assisting in securing, for any employee any
employment with such employer shall be guilty of a misdemeanor.
Sec. 11. Minnesota Statutes 1994, section 181.032, is
amended to read:
181.032 [REQUIRED STATEMENT OF EARNINGS BY EMPLOYER.]
At the end of each pay period, the employer shall give each
employee an earnings statement in writing covering that pay
period. The earnings statement may be in any form determined by
the employer but must include:
(a) the name of the employee;
(b) the hourly rate of pay (if applicable);
(c) the total number of hours worked by the employee unless
exempt from chapter 177;
(d) the total amount of gross pay earned by the employee
during that period;
(e) a list of deductions made from the employee's pay;
(f) the net amount of pay after all deductions are made;
and
(g) the date on which the pay period ends; and
(h) the legal name of the employer and the operating name
of the employer if different from the legal name.
An employer, who for the purpose of depriving an employee
of wages to which the employee is entitled and in order to
mislead the employee, furnishes to the employee a statement that
the employer knows to be false is guilty of a misdemeanor.
Sec. 12. [181.171] [COURT ACTIONS; PRIVATE PARTY CIVIL
ACTIONS.]
Subdivision 1. [CIVIL ACTION; DAMAGES.] A person may bring
a civil action seeking redress for violations of sections
181.02, 181.03, 181.031, 181.032, 181.08, 181.09, 181.10,
181.101, 181.11, 181.12, 181.13, 181.14, 181.145, and 181.15
directly to district court. An employer who is found to have
violated the above sections is liable to the aggrieved party for
the civil penalties or damages provided for in the section
violated. An employer who is found to have violated the above
sections shall also be liable for compensatory damages and other
appropriate relief including but not limited to injunctive
relief.
Subd. 2. [DISTRICT COURT JURISDICTION.] An action brought
under subdivision 1 may be filed in the district court of the
county wherein a violation is alleged to have been committed,
where the respondent resides or has a principal place of
business, or any other court of competent jurisdiction.
Subd. 3. [ATTORNEY'S FEES AND COSTS.] In an action brought
under subdivision 1, the court shall order an employer who is
found to have committed a violation to pay to the aggrieved
party reasonable costs, disbursements, witness fees, and
attorney fees.
Sec. 13. [REPEALER.]
Minnesota Statutes 1994, sections 177.27, subdivision 6;
177.33; and 181.17, are repealed.
Presented to the governor March 25, 1996
Signed by the governor March 27, 1996, 11:35 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes