Minnesota Session Laws - 1997, Regular Session

                             CHAPTER 83-H.F.No. 966 
                  An act relating to employment; modifying provisions 
                  governing payment of wages; including the state in the 
                  definition of employer for certain purposes; amending 
                  Minnesota Statutes 1996, sections 181.02; 181.03; 
                  181.063; 181.10; 181.13; 181.14; and 181.171, by 
                  adding a subdivision. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1996, section 181.02, is 
        amended to read: 
           181.02 [SALARY OR WAGES NOT TO BE PAID BY NONNEGOTIABLE 
        INSTRUMENTS.] 
           It shall be is unlawful for any person, firm, or 
        corporation an employer, other than a public service 
        corporations corporation, to issue to any employee in lieu of or 
        in payment of any salary or wages earned by such the employee a 
        nonnegotiable time check or order.  
           Sec. 2.  Minnesota Statutes 1996, section 181.03, is 
        amended to read: 
           181.03 [CERTAIN ACTS RELATING TO PAYMENT OF WAGES 
        UNLAWFUL.] 
           A person, firm, corporation, or association An employer may 
        not, directly or indirectly and with intent to defraud,: 
           (1) cause any employee to give a receipt for wages for a 
        greater amount than that actually paid to the employee for 
        services rendered or; 
           (2) directly or indirectly demand or receive from any 
        employee any rebate or refund from the wages to which owed the 
        employee is entitled under contract of employment with such the 
        employer,; or 
           (3) in any manner make or attempt to make it appear that 
        the wages paid to any employee were greater than the amount 
        actually paid to the employee.  
           Sec. 3.  Minnesota Statutes 1996, section 181.063, is 
        amended to read: 
           181.063 [ASSIGNMENT OF WAGES, PUBLIC EMPLOYEES.] 
           Any officer or employee of a county, town, city, or school 
        district, or the state, or any department thereof, has the same 
        right to sell, assign, or transfer salary or wages as is now 
        possessed by any officer of or person employed by any 
        corporation, firm, or person.  
           Sec. 4.  Minnesota Statutes 1996, section 181.10, is 
        amended to read: 
           181.10 [WAGES PAID EVERY 15 DAYS.] 
           Every person, firm, corporation, or association employer 
        employing any person to labor or perform service on any project 
        of a transitory nature, such as the construction, paving, 
        repair, or maintenance of roads or highways, sewers or ditches, 
        clearing land, or the production of forest products or any other 
        work which that requires the employee to change the employee's 
        place of abode, shall pay the wages or earnings of such the 
        person at intervals of not more than 15 days, and payments 
        thereof shall be made at the place of employment or in close 
        proximity thereto to the place of employment. 
           Sec. 5.  Minnesota Statutes 1996, section 181.13, is 
        amended to read: 
           181.13 [PENALTY FOR FAILURE TO PAY WAGES PROMPTLY.] 
           (a) When any person, firm, company, association, or 
        corporation employer employing labor within this state 
        discharges a servant or an employee, the wages or commissions 
        actually earned and unpaid at the time of the discharge shall 
        become are immediately due and payable upon demand of the 
        employee.  If the employee's earned wages and commissions are 
        not paid within 24 hours after such demand, whether the 
        employment was by the day, hour, week, month, or piece or by 
        commissions, the employer is in default.  The discharged 
        employee may charge and collect the amount of the employee's 
        average daily earnings at the rate agreed upon in the contract 
        of employment, for such period, not exceeding each day up to 15 
        days, after the expiration of the 24 hours, as 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 shall does not commence until the date of the first 
        regular or special meeting of the governing board following 
        discharge of the employee.  
           (b) The wages and commissions must be paid at the usual 
        place 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 shall be deemed to have been are paid as of the date 
        of their postmark for the purposes of this section. 
           Sec. 6.  Minnesota Statutes 1996, section 181.14, is 
        amended to read: 
           181.14 [NOTICE TO BE GIVEN PAYMENT TO EMPLOYEES WHO QUIT OR 
        RESIGN; SETTLEMENT OF DISPUTES.] 
           Subdivision 1.  [PROMPT PAYMENT REQUIRED.] When any such 
        employee, not having a contract for a definite period of 
        service, quits or resigns employment, the wages or commissions 
        earned and unpaid at the time the employee quits or resigns 
        shall become due and payable within five days thereafter.  Any 
        employer failing or refusing to pay such 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.  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. 
           Subd. 2.  [NONPROMPT PAYMENT.] Wages or commissions, after 
        they become due, 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 from the date of the demand for an additional sum equal 
        to the amount of 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.  If any employee having such a contract 
        gives not less than five days' written notice to the employer of 
        intention to quit, the wages or commissions of the employee 
        giving notice may be demanded and shall become due 24 hours 
        after the employee quits or resigns, and the penalty herein 
        provided shall apply from the date of demand.  
           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 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 
        secular 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 become due and payable 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 audit and 
        adjustment payment of the employee's wages or commissions.  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 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 181.17, but the claim for unpaid wages or 
        commissions of such employee, if any, shall be disposed of as 
        provided by existing law. 
           Subd. 5.  [PLACE OF PAYMENT.] 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 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. 
           Sec. 7.  Minnesota Statutes 1996, section 181.171, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [EMPLOYER; DEFINITION.] "Employer" means any 
        person having one or more employees in Minnesota and includes 
        the state and any political subdivision of the state.  This 
        definition applies to this section and sections 181.02, 181.03, 
        181.031, 181.032, 181.06, 181.063, 181.10, 181.101, 181.13, 
        181.14, and 181.16. 
           Presented to the governor May 1, 1997 
           Signed by the governor May 2, 1997, 3:16 p.m.