Note: This article is about the written notice of pay rate requirement at the start of employment in Minnesota. The state’s wage theft law includes other provisions as well, such as payroll records and other pay requirements, which employers should also review.
What are the requirements?
Minnesota’s Wage Theft Law requires employers to give written notice of wage rates and other information to each new hire. The notice must be given in English and must include a statement, in multiple languages, that informs employees that they may request the notice be provided to them in another language. The state has posted a model notice fulfilling these requirements, as well as model notices that have been translated into other languages, available here. Employers must provide the notice in another language if requested by the employee. A copy must be provided to all employees.
When do employers need to provide this notice to employees?
Notice must be provided at the start of employment and must be signed by the employee. Furthermore, if any information changes over the course of employment, then the changes to the information will need to be provided to the employee via written notice prior to the change. Employers are not required to have employees sign the written notice for these changes (unless they have not received a version of the notice previously), but it is a best practice to do so.
What information must be included in the notice?
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Employee’s employment status and whether an employee is exempt from minimum wage, overtime and other state wage and hour laws, and on what basis.
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Number of days in the employee’s pay period and the regularly scheduled payday.
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Date the employee will receive the first payment of wages earned.
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Employee’s rate or rates of pay and the basis thereof, including whether the employee is paid by the hour, shift, day, week, salary, piece, commission or other method and the specific application of any additional rates.
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Allowances, if any, that may be claimed for permitted meals and lodging.
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Provision of paid vacation, sick time or other paid time off (PTO), how the paid time off will accrue and terms for its use.
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A list of deductions that may be made from the employee’s pay.
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Employer’s legal name and the operating name, if different.
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Physical address of employer’s main office or principal place of business and a mailing address, if different.
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Employer’s telephone number.
What are the steps to get this notice signed and filed in Justworks?
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Add your new employee.
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Download the employee notice in the appropriate language from the state website.
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Fill in the required information.
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Send to MN employee for signature.
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Upload completed form to the employee’s personal document center. Given the sensitive nature of this information, please be sure to only upload to document center and share with the specific employee only.
What are the penalties for not complying?
Employers who violate the employee notice and recordkeeping requirements may face civil penalties up to $1,000 for each violation and up to $5,000 for each repeated failure to comply.
How long does the form need to be stored?
Signed documents should remain in the employee’s personal document center for at least three years from their start date.
Where can I find more information?
WAGE THEFT LEGISLATION 2019 AND SUMMARIES
Employees who work at least 80 hours in a year within the geographical boundaries of Minneapolis are subject to the Minneapolis Wage Theft Prevention Ordinance (effective 1/1/20).
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.