1997 Minnesota Statutes

CHAPTER 177. Minimum wages

  177.01 Repealed, 1973 c 721 s 16 

    177.02 Subdivision 1.  Repealed, 1973 c 721 s 16 

    Subd. 2.  Repealed, 1973 c 721 s 16 

    Subd. 3.  Repealed, 1973 c 721 s 16 

    Subd. 4.  Repealed, 1973 c 721 s 16 

    Subd. 5.  Repealed, 1973 c 721 s 16 

    Subd. 6.  Repealed, 1973 c 721 s 16; 1976 c 2 s 
 166 

    Subd. 7.  Repealed, 1973 c 721 s 16; 1976 c 2 s 
 166 

    Subd. 8.  Repealed, 1971 c 874 s 5 

    Subd. 9.  Repealed, 1973 c 721 s 16 

  177.03 Repealed, 1973 c 721 s 16 

  177.04 Repealed, 1973 c 721 s 16 

  177.05 Repealed, 1973 c 721 s 16 

  177.06 Repealed, 1973 c 721 s 16 

  177.07 Repealed, 1973 c 721 s 16 

  177.075 Repealed, 1973 c 721 s 16 

  177.08 Repealed, 1973 c 721 s 16 

  177.09 Repealed, 1973 c 721 s 16 

  177.10 Repealed, 1973 c 721 s 16 

  177.11 Repealed, 1973 c 721 s 16 

  177.12 Repealed, 1973 c 721 s 16 

  177.121 Repealed, 1973 c 721 s 16 

  177.122 Repealed, 1973 c 721 s 16 

  177.13 Repealed, 1973 c 721 s 16 

  177.14 Repealed, 1973 c 721 s 16 

  177.15 Repealed, 1973 c 721 s 16 

  177.16 Repealed, 1973 c 721 s 16 

  177.17 Repealed, 1973 c 721 s 16 

  177.18 Repealed, 1965 c 45 s 73 

  177.19 Repealed, 1973 c 721 s 16 

  177.20 Repealed, 1973 c 721 s 16 

     177.21 Citation; fair labor standards act. 

    Sections 177.21 to 177.35 may be cited as the "Minnesota 
 fair labor standards act."  

    HIST: 1973 c 721 s 1; 1984 c 628 art 4 s 1 

     177.22 Statement of purpose. 

    The purpose of the Minnesota Fair Labor Standards Act is:  
 (1) to establish minimum wage and overtime compensation 
 standards that maintain workers' health, efficiency, and general 
 well-being; (2) to safeguard existing minimum wage and overtime 
 compensation standards that maintain workers' health, 
 efficiency, and general well-being against the unfair 
 competition of wage and hour standards that do not; and (3) to 
 sustain purchasing power and increase employment opportunities.  

    HIST: 1973 c 721 s 2; 1984 c 628 art 4 s 1 

     177.23 Definitions. 

    Subdivision 1.    Scope.  Unless the language or context 
 clearly indicates that a different meaning is intended, the 
 following terms, for the purposes of sections 177.21 to 177.35, 
 have the meanings given to them in this section. 

    Subd. 2.    Department.  "Department" means the 
 department of labor and industry. 

    Subd. 3.    Commissioner.  "Commissioner" means the 
 commissioner of labor and industry or authorized designee or 
 representative. 

    Subd. 4.    Wage.  "Wage" means compensation due to an 
 employee by reason of employment, payable in legal tender of the 
 United States, check on banks convertible into cash on demand at 
 full face value or, except for instances of written objection to 
 the employer by the employee, direct deposit to the employee's 
 choice of demand deposit account, subject to allowances 
 permitted by rules of the department under section 177.28. 

    Subd. 5.    Employ.  "Employ" means to permit to work. 

    Subd. 6.    Employer.  "Employer" means any individual, 
 partnership, association, corporation, business trust, or any 
 person or group of persons acting directly or indirectly in the 
 interest of an employer in relation to an employee. 

    Subd. 7.    Employee.  "Employee" means any individual 
 employed by an employer but does not include:  

    (1) two or fewer specified individuals employed at any 
 given time in agriculture on a farming unit or operation who are 
 paid a salary; 

    (2) any individual employed in agriculture on a farming 
 unit or operation who is paid a salary greater than the 
 individual would be paid if the individual worked 48 hours at 
 the state minimum wage plus 17 hours at 1-1/2 times the state 
 minimum wage per week; 

    (3) an individual under 18 who is employed in agriculture 
 on a farm to perform services other than corn detasseling or 
 hand field work when one or both of that minor hand field 
 worker's parents or physical custodians are also hand field 
 workers; 

    (4) for purposes of section 177.24, an individual under 18 
 who is employed as a corn detasseler; 

    (5) any staff member employed on a seasonal basis by an 
 organization for work in an organized resident or day camp 
 operating under a permit issued under section 144.72; 

    (6) any individual employed in a bona fide executive, 
 administrative, or professional capacity, or a salesperson who 
 conducts no more than 20 percent of sales on the premises of the 
 employer; 

    (7) any individual who renders service gratuitously for a 
 nonprofit organization; 

    (8) any individual who serves as an elected official for a 
 political subdivision or who serves on any governmental board, 
 commission, committee or other similar body, or who renders 
 service gratuitously for a political subdivision; 

    (9) any individual employed by a political subdivision to 
 provide police or fire protection services or employed by an 
 entity whose principal purpose is to provide police or fire 
 protection services to a political subdivision; 

    (10) any individual employed by a political subdivision who 
 is ineligible for membership in the public employees retirement 
 association under section 353.01, subdivision 2b, clause (1), 
 (2), (4), or (9); 

    (11) any driver employed by an employer engaged in the 
 business of operating taxicabs; 

    (12) any individual engaged in babysitting as a sole 
 practitioner; 

    (13) for the purpose of section 177.25, any individual 
 employed on a seasonal basis in a carnival, circus, fair, or ski 
 facility; 

    (14) any individual under 18 working less than 20 hours per 
 workweek for a municipality as part of a recreational program; 

    (15) any individual employed by the state as a natural 
 resource manager 1, 2, or 3 (conservation officer); 

    (16) any individual in a position for which the United 
 States Department of Transportation has power to establish 
 qualifications and maximum hours of service under United States 
 Code, title 49, section 304; 

    (17) any individual employed as a seafarer.  The term 
 "seafarer" means a master of a vessel or any person subject to 
 the authority, direction, and control of the master who is 
 exempt from federal overtime standards under United States Code, 
 title 29, section 213(b)(6), including but not limited to 
 pilots, sailors, engineers, radio operators, firefighters, 
 security guards, pursers, surgeons, cooks, and stewards; 

    (18) any individual employed by a county in a single-family 
 residence owned by a county home school as authorized under 
 section 260.094 if the residence is an extension facility of 
 that county home school, and if the individual as part of the 
 employment duties resides at the residence for the purpose of 
 supervising children as defined by section 260.015, subdivision 
 2; or 

    (19) nuns, monks, priests, lay brothers, lay sisters, 
 ministers, deacons, and other members of religious orders who 
 serve pursuant to their religious obligations in schools, 
 hospitals, and other nonprofit institutions operated by the 
 church or religious order. 

    Subd. 8.    Occupation.  "Occupation" means any 
 occupation, service, trade, business, industry, or branch or 
 group of industries or employment or class of employment in 
 which employees are gainfully employed. 

    Subd. 9.    Gratuities.  "Gratuities" means monetary 
 contributions received directly or indirectly by an employee 
 from a guest, patron, or customer for services rendered and 
 includes an obligatory charge assessed to customers, guests or 
 patrons which might reasonably be construed by the guest, 
 customer, or patron as being a payment for personal services 
 rendered by an employee and for which no clear and conspicuous 
 notice is given by the employer to the customer, guest, or 
 patron that the charge is not the property of the employee. 

    Subd. 10.    On-site employee; hours worked.  With 
 respect to any caretaker, manager, or other on-site employee of 
 a residential building or buildings whose principal place of 
 residence is in the residential building, including a caretaker, 
 manager, or other on-site employee who receives a principal 
 place of residence as full or partial compensation for duties 
 performed for an employer, the term "hours worked"  includes 
 time when the caretaker, manager, or other on-site employee is 
 performing any duties of employment, but does not mean time when 
 the caretaker, manager, or other on-site employee is on the 
 premises and available to perform duties of employment and is 
 not performing duties of employment. 

    Subd. 11.    Companionship services; hours.  With 
 respect to an individual who is:  (1) employed to provide 
 companionship services to individuals who, because of age or 
 infirmity, are unable to care for their own needs; (2) employed 
 to stay overnight in the home of such an aged or infirm 
 individual; and (3) paid the minimum wage or more for at least 
 four hours associated with the overnight stay, the term "hours" 
 for the purposes of requiring the payment of minimum wages and 
 overtime premiums under sections 177.24 and 177.25, shall not 
 include nighttime hours, from 10:00 p.m. to 9:00 a.m., up to a 
 total of eight hours per night, during which the employee is 
 available to perform duties for the aged or infirm individual, 
 but is not in fact performing such duties and is free to sleep 
 and otherwise engage in normal private pursuits in the aged or 
 infirm individual's home.  For the purposes of this subdivision, 
 the term "companionship services" is defined in Code of Federal 
 Regulations, title 29, sections 552.6 and 552.106 as of March 1, 
 1984. 

    HIST: 1973 c 721 s 3; 1974 c 406 s 88; 1975 c 399 s 1; 1977 c 
 369 s 1; 1978 c 586 s 1; 1978 c 731 s 1; 1979 c 281 s 1; 1980 c 
 415 s 1; 1982 c 424 s 46-48; 1982 c 625 s 14; 1983 c 60 s 1; 
 1983 c 122 s 1; 1984 c 614 s 1; 1984 c 628 art 4 s 1; 1Sp1985 c 
 13 s 274,275; 1986 c 390 s 2; 1986 c 444; 1990 c 418 s 1; 1992 c 
 464 art 1 s 24 

     177.24 Payment of minimum wages. 

    Subdivision 1.    Amount.  (a) For purposes of this 
 subdivision, the terms defined in this paragraph have the 
 meanings given them.  

    (1) "Large employer" means an enterprise whose annual gross 
 volume of sales made or business done is not less than $500,000 
 (exclusive of excise taxes at the retail level that are 
 separately stated) and covered by the Minnesota fair labor 
 standards act, sections 177.21 to 177.35. 

    (2) "Small employer" means an enterprise whose annual gross 
 volume of sales made or business done is less than $500,000 
 (exclusive of excise taxes at the retail level that are 
 separately stated) and covered by the Minnesota fair labor 
 standards act, sections 177.21 to 177.35.  

    (b) Except as otherwise provided in sections 177.21 to 
 177.35, every large employer must pay each employee wages at a 
 rate of at least $5.15 an hour beginning September 1, 1997. 
 Every small employer must pay each employee at a rate of at 
 least $4.90 an hour beginning January 1, 1998. 

    (c) Notwithstanding paragraph (b), during the first 90 
 consecutive days of employment, an employer may pay an employee 
 under the age of 20 years a wage of $4.25 an hour.  No employer 
 may take any action to displace any employee, including a 
 partial displacement through a reduction in hours, wages, or 
 employment benefits, in order to hire an employee at the wage 
 authorized in this paragraph.  

    Subd. 1a.  MS 1990 Expired 

    Subd. 2.    Gratuities not applied.  No employer may 
 directly or indirectly credit, apply, or utilize gratuities 
 towards payment of the minimum wage set by this section or 
 federal law. 

    Subd. 3.    Sharing of gratuities.  For purposes of this 
 chapter, any gratuity received by an employee or deposited in or 
 about a place of business for personal services rendered by an 
 employee is the sole property of the employee.  No employer may 
 require an employee to contribute or share a gratuity received 
 by the employee with the employer or other employees or to 
 contribute any or all of the gratuity to a fund or pool operated 
 for the benefit of the employer or employees.  This section does 
 not prevent an employee from voluntarily and individually 
 sharing gratuities with other employees.  The agreement to share 
 gratuities must be made by the employees free of any employer 
 participation.  The commissioner may require the employer to pay 
 restitution in the amount of the gratuities diverted.  If the 
 records maintained by the employer do not provide sufficient 
 information to determine the exact amount of gratuities 
 diverted, the commissioner may make a determination of 
 gratuities diverted based on available evidence and mediate a 
 settlement with the employer. 

    Subd. 4.    Unreimbursed expenses deducted.  Deductions, 
 direct or indirect, from wages or gratuities not authorized by 
 this subdivision may only be taken as authorized by sections 
 177.28, subdivision 3, 181.06, and 181.79.  Deductions, direct 
 or indirect, for up to the full cost of the uniform or equipment 
 as listed below, may not exceed $50.  No deductions, direct or 
 indirect, may be made for the items listed below which when 
 subtracted from wages would reduce the wages below the minimum 
 wage: 

    (a) purchased or rented uniforms or specially designed 
 clothing required by the employer, by the nature of the 
 employment, or by statute as a condition of employment, which is 
 not generally appropriate for use except in that employment; 

    (b) purchased or rented equipment used in employment, 
 except tools of a trade, a motor vehicle, or any other equipment 
 which may be used outside the employment; 

    (c) consumable supplies required in the course of that 
 employment; 

    (d) travel expenses in the course of employment except 
 those incurred in traveling to and from the employee's residence 
 and place of employment. 

    Subd. 5.    Expense reimbursement.  An employer, at the 
 termination of an employee's employment, must reimburse the full 
 amount deducted, directly or indirectly, for any of the items 
 listed in subdivision 4.  When reimbursement is made, the 
 employer may require the employee to surrender any existing 
 items for which the employer provided reimbursement. 

    HIST: 1973 c 721 s 4; 1976 c 165 s 1; 1977 c 183 s 1; 1977 c 
 369 s 2; 1979 c 281 s 2; 1981 c 87 s 1,2; 1984 c 628 art 4 s 1; 
 1Sp1985 c 13 s 276-278; 1986 c 444; 1987 c 324 s 1; 1987 c 384 
 art 2 s 45; 1990 c 418 s 2-4; 1996 c 305 art 1 s 49,50; 2Sp1997 
 c 1 s 1 

     177.25 Overtime. 

    Subdivision 1.    Compensation required.  No employer 
 may employ an employee for a workweek longer than 48 hours, 
 unless the employee receives compensation for employment in 
 excess of 48 hours in a workweek at a rate of at least 1-1/2 
 times the regular rate at which the employee is employed.  The 
 state of Minnesota or a political subdivision may grant time off 
 at the rate of 1-1/2 hours for each hour worked in excess of 48 
 hours in a week in lieu of monetary compensation.  An employer 
 does not violate the overtime pay provisions of this section by 
 employing any employees for a workweek in excess of 48 hours 
 without paying the compensation for overtime employment 
 prescribed (1) if the employee is employed under an agreement 
 meeting the requirement of section 7(b)(2) of the Fair Labor 
 Standards Act of 1938, as amended, or (2) if the employee is 
 employed as a sugar beet hand laborer on a piece rate basis, 
 provided that the regular rate of pay received per hour of work 
 exceeds the applicable wage provided in section 177.24, 
 subdivision 1 by at least 40 cents. 

    Subd. 2.    Health care exception.  An employer who 
 operates a health care facility does not violate subdivision 1 
 if the employer and employee agree before performance of the 
 work to accept a work period of 14 consecutive days in lieu of 
 the workweek of seven consecutive days for the purpose of 
 overtime compensation and if for the employment in excess of 
 eight hours in any work day and in excess of 80 hours in the 
 14-day period the employee receives compensation at a rate not 
 less than 1-1/2 times the regular rate at which the employee is 
 employed.  

    Subd. 3.    Motor vehicle salespeople; mechanics.  
 Subdivision 1 does not apply to any salesperson, parts person, 
 or mechanic primarily engaged in selling or servicing 
 automobiles, trailers, trucks, or farm implements and paid on a 
 commission or incentive basis, if employed by a nonmanufacturing 
 establishment primarily engaged in selling the vehicles to 
 ultimate purchasers. 

    Subd. 4.    Constructors of on-farm silos.  Subdivision 
 1 does not apply if the employee is employed in the construction 
 of on-farm silos or the installation of appurtenant equipment on 
 a unit or piece rate basis, if the regular rate of pay received 
 per hour of work exceeds the applicable wage provided in section 
 177.24, subdivision 1.  

    HIST: 1973 c 721 s 5; 1981 c 289 s 1,3; 1Sp1981 c 4 art 4 s 
 30; 1983 c 60 s 2,3; 1983 c 95 s 1; 1984 c 628 art 4 s 1; 1986 c 
 444 

     177.251 Ridesharing not overtime. 

    The provisions of this chapter relating to compensation for 
 overtime and payment of a minimum wage do not apply to 
 employees' time spent in ridesharing arrangements as defined in 
 section 169.01, subdivision 63.  

    HIST: 1983 c 311 s 10; 1984 c 628 art 4 s 1 

     177.253 Mandatory work breaks. 

    Subdivision 1.    Rest breaks.  An employer must allow 
 each employee adequate time from work within each four 
 consecutive hours of work to utilize the nearest convenient 
 restroom. 

    Subd. 2.    Collective bargaining agreement.  Nothing in 
 this section prohibits employers and employees from establishing 
 rest breaks different from those provided in this section 
 pursuant to a collective bargaining agreement. 

    HIST: 1988 c 559 s 1 

     177.254 Mandatory meal break. 

    Subdivision 1.    Meal break.  An employer must permit 
 each employee who is working for eight or more consecutive hours 
 sufficient time to eat a meal. 

    Subd. 2.    Payment not required.  Nothing in this 
 section requires the employer to pay the employee during the 
 meal break. 

    Subd. 3.    Collective bargaining agreement.  Nothing in 
 this section prohibits employers and employees from establishing 
 meal periods different from those provided in this section 
 pursuant to a collective bargaining agreement. 

    HIST: 1989 c 167 s 1 

     177.26 Division of labor standards. 

    Subdivision 1.    Creation.  The division of labor 
 standards in the department of labor and industry is supervised 
 and controlled by the commissioner of labor and industry.  

    Subd. 2.    Powers and duties.  The powers, duties, and 
 functions given to the department's division of women and 
 children by this chapter, and other applicable laws relating to 
 wages, hours, and working conditions, are transferred to the 
 division of labor standards.  The division of labor standards 
 shall administer sections 177.21 to 177.35 and chapter 184.  The 
 division shall perform duties under sections 181.9435 and 
 181.9436. 

    Subd. 3.    Employees; transfer from division of women and 
 children.  All persons employed by the department in the 
 division of women and children are transferred to the division 
 of labor standards.  A transferred person does not lose rights 
 acquired by reason of employment at the time of transfer.  

    HIST: 1973 c 721 s 6; 1984 c 628 art 4 s 1; 1986 c 444; 1992 c 
 438 s 1 

     177.27 Powers and duties of the commissioner. 

    Subdivision 1.    Examination of records.  The 
 commissioner may enter during reasonable office hours or upon 
 request and inspect the place of business or employment of any 
 employer of employees working in the state, to examine and 
 inspect books, registers, payrolls, and other records of any 
 employer that in any way relate to wages, hours, and other 
 conditions of employment of any employees.  The commissioner may 
 transcribe any or all of the books, registers, payrolls, and 
 other records as the commissioner deems necessary or appropriate 
 and may question the employees to ascertain compliance with 
 sections 177.21 to 177.35.  The commissioner may investigate 
 wage claims or complaints by an employee against an employer if 
 the failure to pay a wage may violate Minnesota law or an order 
 or rule of the department. 

    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 $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. 

    Subd. 3.    Adequacy of records.  If the records 
 maintained by the employer do not provide sufficient information 
 to determine the exact amount of back wages due an employee, the 
 commissioner may make a determination of wages due based on 
 available evidence and mediate a settlement with the employer.  

    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 15 calendar days after being served 
 with the order.  A 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. 

    Subd. 5.    Civil actions.  The commissioner may bring 
 an action in the district court where an employer resides or 
 where the commissioner maintains an office to enforce or require 
 compliance with orders issued under subdivision 4. 

    Subd. 6. Repealed, 1996 c 386 s 13 

    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. 

    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. 

    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. 

    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. 

    HIST: 1973 c 721 s 7; 1982 c 424 s 49,130; 1983 c 209 s 1; 
 1984 c 628 art 4 s 1; 1Sp1985 c 13 s 279; 1986 c 444; 1987 c 329 
 s 21; 1987 c 384 art 2 s 1; 1996 c 386 s 1-6 

     177.28 Power to make rules. 

    Subdivision 1.    General authority.  The commissioner 
 may adopt rules, including definitions of terms, to carry out 
 the purposes of sections 177.21 to 177.35, to prevent the 
 circumvention or evasion of those sections, and to safeguard the 
 minimum wage and overtime rates established by sections 177.24 
 and 177.25. 

    Subd. 2. Repealed, 1988 c 629 s 64 

    Subd. 3.    Rules required.  The commissioner shall 
 adopt rules under sections 177.21 to 177.35 defining and 
 governing:  

    (1)  salespeople who conduct no more than 20 percent of 
 their sales on the premises of the employer; 

    (2) allowances as part of the wage rates for board, 
 lodging, and other facilities or services furnished by the 
 employer and used by the employees; 

    (3) bonuses; 

    (4) part-time rates; 

    (5) special pay for special or extra work; 

    (6) procedures in contested cases; 

    (7) other facilities or services furnished by employers and 
 used by employees; and 

    (8) other special items usual in a particular 
 employer-employee relationship.  

    Subd. 4. Repealed, 1996 c 305 art 1 s 52 

    Subd. 5.    Rules regarding handicapped.  In order to 
 prevent curtailment of opportunities for employment, avoid undue 
 hardship, and safeguard the minimum wage rates under sections 
 177.24 and 177.25, the department shall also issue rules 
 providing for the employment of handicapped workers at wages 
 lower than the wage rates applicable under sections 177.24 and 
 177.25, under permits and for periods of time as specified 
 therein.  The rules must provide for the employment of learners 
 and apprentices at wages lower than the wage rates applicable 
 under sections 177.24 and 177.25, under permits and subject to 
 limitations on number, proportion, length of learning period, 
 occupations, and other conditions as the department may 
 prescribe.  The rules must provide that where a handicapped 
 person is performing or is being considered for employment where 
 work must be performed which is equal to work performed by a 
 nonhandicapped person, the handicapped person must be paid the 
 same wage as a nonhandicapped person with similar experience and 
 skill. 

    Subd. 6.    Administrative procedure act to apply.  The 
 rules are subject to the provisions of chapter 14.  

    HIST: 1973 c 721 s 8; 1976 c 165 s 2; 1977 c 369 s 3; 1982 c 
 424 s 50; 1984 c 628 art 4 s 1; 1984 c 636 s 1; 1Sp1985 c 13 s 
 280; 1986 c 444 

     177.29 Judicial review. 

    Subdivision 1.    Appeal.  A person aggrieved by an 
 administrative rule issued under section 177.28 may appeal in 
 accordance with chapter 14. 

    Subd. 2. Repealed, 1983 c 247 s 219 

    Subd. 3. Repealed, 1983 c 247 s 219 

    HIST: 1973 c 721 s 9; 1982 c 424 s 51; 1983 c 247 s 75; 1984 c 
 628 art 4 s 1 

  177.295 Repealed, 1985 c 248 s 35 

     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 $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. 

    HIST: 1973 c 721 s 10; 1982 c 424 s 52; 1983 c 209 s 2; 1984 c 
 628 art 4 s 1; 1987 c 329 s 21; 1996 c 386 s 7 

     177.31 Posting of law and rules; penalty. 

    Every employer subject to sections 177.21 to 177.35 must 
 obtain and keep a summary of those sections, approved by the 
 department, and copies of any applicable rules adopted under 
 those sections, or a summary of the rules.  The employer must 
 post the summaries in a conspicuous and accessible place in or 
 about the premises in which any person covered by sections 
 177.21 to 177.35 is employed.  The department shall furnish 
 copies of the summaries and rules to employers without charge.  

    The commissioner may fine an employer up to $200 for each 
 failure to comply with this section.  This penalty is in 
 addition to any penalties provided by section 177.32, 
 subdivision 1.  

    HIST: 1973 c 721 s 11; 1982 c 424 s 53; 1983 c 209 s 3; 1984 c 
 628 art 4 s 1; 1987 c 329 s 21 

     177.32 Penalties. 

    Subdivision 1.    Misdemeanors.  An employer who does 
 any of the following is guilty of a misdemeanor:  

    (1) hinders or delays the commissioner in the performance 
 of duties required under sections 177.21 to 177.35; 

    (2) refuses to admit the commissioner to the place of 
 business or employment of the employer, as required by section 
 177.27, subdivision 1; 

    (3) repeatedly fails to make, keep, and preserve records as 
 required by section 177.30; 

    (4) falsifies any record; 

    (5) refuses to make any record available, or to furnish a 
 sworn statement of the record or any other information as 
 required by section 177.27; 

    (6) repeatedly fails to post a summary of sections 177.21 
 to 177.35 or a copy or summary of the applicable rules as 
 required by section 177.31; 

    (7) pays or agrees to pay wages at a rate less than the 
 rate required under sections 177.21 to 177.35; 

    (8) refuses to allow adequate time from work as required by 
 section 177.253; or 

    (9) otherwise violates any provision of sections 177.21 to 
 177.35. 

    Subd. 2.    Fine.  An employer shall be fined not less 
 than $700 nor more than $3,000 if convicted of discharging or 
 otherwise discriminating against any employee because:  

    (1) the employee has complained to the employer or to the 
 department that wages have not been paid in accordance with 
 sections 177.21 to 177.35; 

    (2) the employee has instituted or will institute a 
 proceeding under or related to sections 177.21 to 177.35; or 

    (3) the employee has testified or will testify in any 
 proceeding. 

    HIST: 1973 c 721 s 12; 1982 c 424 s 54; 1983 c 209 s 4; 1984 c 
 628 art 3 s 11; art 4 s 1; 1Sp1985 c 13 s 281; 1986 c 444; 1988 
 c 559 s 2 

  177.33 Repealed, 1996 c 386 s 13 

  177.34 Repealed, 1996 c 310 s 1 

     177.35 Right of collective bargaining. 

    Nothing in sections 177.21 to 177.35 limits the right of 
 employees to bargain collectively with their employers through 
 representatives of their own choosing to establish wages or 
 other conditions of work more favorable to the employees than 
 those required by sections 177.21 to 177.35. 

    HIST: 1973 c 721 s 15; 1982 c 424 s 57; 1984 c 628 art 4 s 1 

     177.41 State projects and state highway construction; 
  public policy. 

    It is in the public interest that public buildings and 
 other public works be constructed and maintained by the best 
 means and highest quality of labor reasonably available and that 
 persons working on public works be compensated according to the 
 real value of the services they perform.  It is therefore the 
 policy of this state that wages of laborers, workers, and 
 mechanics on projects financed in whole or part by state funds 
 should be comparable to wages paid for similar work in the 
 community as a whole.  

    HIST: 1973 c 724 s 1; 1975 c 191 s 1; 1984 c 628 art 4 s 1 

     177.42 Definitions. 

    Subdivision 1.    Scope.  As used in sections 177.41 to 
 177.44 the terms defined in this section have the meanings given 
 them except where the context indicates otherwise.  

    Subd. 2.    Project.  "Project" means erection, 
 construction, remodeling, or repairing of a public building or 
 other public work financed in whole or part by state funds.  

    Subd. 3.    Area.  "Area" means the county or other 
 locality from which labor for any project is normally secured.  

    Subd. 4.    Prevailing hours of labor.  "Prevailing 
 hours of labor" means the hours of labor per day and per week 
 worked within the area by a larger number of workers of the same 
 class than are employed within the area for any other number of 
 hours per day and per week.  The prevailing hours of labor may 
 not be more than eight hours per day or more than 40 hours per 
 week.  

    Subd. 5.    Hourly basic rate.  "Hourly basic rate" 
 means the hourly wage paid to any employee.  

    Subd. 6.    Prevailing wage rate.  "Prevailing wage 
 rate" means the hourly basic rate of pay plus the contribution 
 for health and welfare benefits, vacation benefits, pension 
 benefits, and any other economic benefit paid to the largest 
 number of workers engaged in the same class of labor within the 
 area and includes, for the purposes of section 177.44, rental 
 rates for truck hire paid to those who own and operate the 
 truck.  The prevailing wage rate may not be less than a 
 reasonable and living wage.  

    HIST: 1973 c 724 s 2; 1975 c 191 s 2; 1984 c 628 art 4 s 1 

     177.43 Contracts for state projects; penalty. 

    Subdivision 1.    Hours of labor.  Any contract which 
 provides for a project must state that:  

    (1) no laborer or mechanic employed directly on the project 
 work site by the contractor or any subcontractor, agent, or 
 other person doing or contracting to do all or a part of the 
 work of the project, is permitted or required to work more hours 
 than the prevailing hours of labor unless paid for all hours in 
 excess of the prevailing hours at a rate of at least 1-1/2 times 
 the hourly basic rate of pay; and 

    (2) a laborer or mechanic may not be paid a lesser rate of 
 wages than the prevailing wage rate in the same or most similar 
 trade or occupation in the area.  

    Subd. 2.    Exceptions.  This section does not apply to 
 wage rates and hours of employment of laborers or mechanics who 
 process or manufacture materials or products or to the delivery 
 of materials or products by or for commercial establishments 
 which have a fixed place of business from which they regularly 
 supply processed or manufactured materials or products.  This 
 section applies to laborers or mechanics who deliver mineral 
 aggregate such as sand, gravel, or stone which is incorporated 
 into the work under the contract by depositing the material 
 substantially in place, directly or through spreaders, from the 
 transporting vehicle.  

    Subd. 3.    Contract requirements.  The contract must 
 specifically state the prevailing wage rates, prevailing hours 
 of labor, and hourly basic rates of pay. 

    Subd. 4.    Determination by commissioner.  The 
 prevailing wage rates, prevailing hours of labor, and hourly 
 basic rates of pay for all trades and occupations required in 
 any project must be ascertained before the state asks for bids.  
 The commissioner of labor and industry shall investigate as 
 necessary to ascertain the information.  The commissioner shall 
 keep the information posted on the project in at least one 
 conspicuous place for the information of the employees working 
 on the project.  A person aggrieved by a final determination of 
 the commissioner may petition the commissioner for 
 reconsideration of findings.  A person aggrieved by a decision 
 of the commissioner after reconsideration may, within 20 days 
 after the decision, petition the commissioner for a public 
 hearing in the manner of a contested case under sections 14.57 
 to 14.61. 

    Subd. 5.    Penalty.  It is a misdemeanor for an officer 
 or employee of the state to execute a contract for a project 
 without complying with this section, or for a contractor, 
 subcontractor, or agent to pay any laborer, worker, or mechanic 
 employed directly on the project site a lesser wage for work 
 done under the contract than the prevailing wage rate as stated 
 in the contract.  This misdemeanor is punishable by a fine of 
 not more than $700, or imprisonment for not more than 90 days, 
 or both.  Each agent or subcontractor shall furnish to the 
 contractor evidence of compliance with this section.  Each day a 
 violation of this section continues is a separate offense. 

    Subd. 6.    Examination of records.  The department of 
 labor and industry shall enforce this section.  The department 
 may demand, and the contractor and subcontractor shall furnish 
 to the department, copies of any or all payrolls.  The 
 department may examine all records relating to wages paid 
 laborers or mechanics on work to which sections 177.41 to 177.44 
 apply. 

    Subd. 7.    Applicability.  This section does not apply 
 to a contract, or work under a contract, under which:  

    (1) the estimated total cost of completing the project is 
 less than $2,500 and only one trade or occupation is required to 
 complete it, or 

    (2) the estimated total cost of completing the project is 
 less than $25,000 and more than one trade or occupation is 
 required to complete it. 

    HIST: 1973 c 724 s 3; 1975 c 191 s 3,4; 1976 c 331 s 37; 1982 
 c 424 s 130; 1984 c 628 art 3 s 11; art 4 s 1 

     177.435 Facility construction; prevailing wage. 

    Construction of value-added agricultural product processing 
 facility financed in whole or in part with a loan or grant 
 provided under section 41A.035, 41B.044, or 41B.046 is a 
 "project" as that term is defined in section 177.42, subdivision 
 2.  Contracts for the construction or expansion of a value-added 
 agricultural product processing facility that is a project under 
 this section must comply with section 177.43 if the loan or 
 grant agreement was entered into on or after December 31, 1995. 

    HIST: 1995 c 220 s 113 

     177.44 Highway contracts; hours of labor; wage rates; 
  penalty. 

    Subdivision 1.    Hours, wages permitted.  A laborer or 
 mechanic employed by a contractor, subcontractor, agent, or 
 other person doing or contracting to do all or part of the work 
 under a contract based on bids as provided in Minnesota Statutes 
 1971, section 161.32, to which the state is a party, for the 
 construction or maintenance of a highway, may not be permitted 
 or required to work longer than the prevailing hours of labor 
 unless the laborer or mechanic is paid for all hours in excess 
 of the prevailing hours at a rate of at least 1-1/2 times the 
 hourly basic rate of pay of the laborer or mechanic.  The 
 laborer or mechanic must be paid at least the prevailing wage 
 rate in the same or most similar trade or occupation in the area.

    Subd. 2.    Applicability.  This section does not apply 
 to wage rates and hours of employment of laborers or mechanics 
 engaged in the processing or manufacture of materials or 
 products, or to the delivery of materials or products by or for 
 commercial establishments which have a fixed place of business 
 from which they regularly supply the processed or manufactured 
 materials or products.  This section applies to laborers or 
 mechanics who deliver mineral aggregate such as sand, gravel, or 
 stone which is incorporated into the work under the contract by 
 depositing the material substantially in place, directly or 
 through spreaders, from the transporting vehicle.  

    Subd. 3.    Investigations by department of labor and 
 industry.  The department of labor and industry shall conduct 
 investigations and hold public hearings necessary to define 
 classes of laborers and mechanics and to determine the hours of 
 labor and wage rates prevailing in all areas of the state for 
 all classes of labor and mechanics commonly employed in highway 
 construction work, so as to determine prevailing hours of labor, 
 prevailing wage rates, and hourly basic rates of pay.  

    The department shall determine the nature of the equipment 
 furnished by truck drivers who own and operate trucks on 
 contract work to determine minimum rates for the equipment, and 
 shall establish by rule minimum rates to be computed into the 
 prevailing wage rate.  

    Subd. 4.    Certification of hours and rate.  The 
 commissioner of labor and industry shall at least once a year 
 certify the prevailing hours of labor, the prevailing wage rate, 
 and the hourly basic rate of pay for all classes of laborers and 
 mechanics referred to in subdivision 3 in each area.  The 
 certification must also include future hours and rates when they 
 can be determined for classes of laborers and mechanics in an 
 area.  The certification must specifically state the effective 
 dates of future hours and rates when they are certified.  If a 
 construction project extends into more than one area there shall 
 be only one standard of hours of labor and wage rates for the 
 entire project.  A person aggrieved by a final determination of 
 the commissioner may petition the commissioner for 
 reconsideration of findings.  A person aggrieved by a decision 
 of the commissioner after reconsideration may within 20 days 
 after the decision petition the commissioner for a public 
 hearing as in a contested case under sections 14.57 to 14.61.  
 If the commissioner finds that a change in the certified 
 prevailing hours of labor, prevailing wage rate, and the hourly 
 basic rate of pay for a class of laborers or mechanics in any 
 area is required, the commissioner may at any time certify that 
 change. 

    Subd. 5.    Hours and rates to be posted.  The 
 prevailing hours of labor, the prevailing wage rates, the hourly 
 basic rates of pay, and classifications for all labor as 
 certified by the commissioner must be specifically stated in the 
 proposals and contracts for each highway construction contract 
 to which the state is a party.  These hours, rates, and 
 classifications, together with the provisions of subdivision 6, 
 must be kept posted on the project by the employer in at least 
 one conspicuous place for the information of employees working 
 on the project.  

    Subd. 6.    Penalties.  A contractor, subcontractor, or 
 agent who violates this section is guilty of a misdemeanor and 
 may be fined not more than $300 or imprisoned not more than 90 
 days or both.  Each day that the violation continues is a 
 separate offense.  

    Whoever induces a job applicant or employee on any project 
 subject to this section to give up or forego any part of the 
 wages to which entitled under the contract governing the project 
 by threat not to employ, by threat of dismissal from employment, 
 or by any other means may be fined not exceeding $1,000 or 
 imprisoned not more than one year or both.  

    Any employee under this section who knowingly permits the 
 contractor or subcontractor to pay less than the prevailing wage 
 rate set forth in the contract, or who gives up any part of the 
 compensation to which entitled under the contract, may be fined 
 not exceeding $40 or imprisoned not more than 30 days or both.  
 Each day any violation of this paragraph continues is a separate 
 offense.  

    Subd. 7.    Department of transportation to enforce.  
 The department of transportation shall require adherence to this 
 section.  The commissioner of transportation may demand and 
 every contractor and subcontractor shall furnish copies of 
 payrolls.  The commissioner of transportation may examine all 
 records relating to hours of work and the wages paid laborers 
 and mechanics on work to which this section applies.  Upon 
 request of the department of transportation or upon complaint of 
 alleged violation, the county attorney of the county in which 
 the work is located shall investigate and prosecute violations 
 in a court of competent jurisdiction. 

    HIST: 1973 c 724 s 4; 1975 c 191 s 5,6; 1976 c 166 s 7; 1976 c 
 331 s 38; 1982 c 424 s 130; 1984 c 628 art 4 s 1; 1986 c 444