Bill Text: MN SF602 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Prompt payment of employee wages requirements modifications
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2013-04-16 - HF substituted on General Orders HF748 [SF602 Detail]
Download: Minnesota-2013-SF602-Engrossed.html
1.2relating to employment; modifying prompt payment of wages requirements;
1.3modifying penalties; amending Minnesota Statutes 2012, sections 181.13; 181.14.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 181.13, is amended to read:
1.6181.13 PENALTY FOR FAILURE TO PAY WAGES PROMPTLY.
1.7(a) When any employer employing labor within this state discharges an employee,
1.8the wages or commissions actually earned and unpaid at the time of the discharge are
1.9immediately due and payable upon demand of the employee. Wages are actually earned
1.10and unpaid if the employee was not paid for all time worked at the employee's regular rate
1.11of pay or at the rate required by law, including any applicable statute, regulation, rule,
1.12ordinance, government resolution or policy, contract, or other legal authority, whichever
1.13rate of pay is greater. If the employee's earned wages and commissions are not paid within
1.1424 hours after demand, whether the employment was by the day, hour, week, month, or
1.15piece or by commissions, the employer is in default. In addition to recovering the wages
1.16and commissions actually earned and unpaid, the discharged employee may charge and
1.17collect a penalty equal to the amount of the employee's average daily earnings at the rate
1.18agreed upon in the contract of employment, employee's regular rate of pay or the rate
1.19required by law, whichever rate is greater, for each day up to 15 days, that the employer is
1.20in default, until full payment or other settlement, satisfactory to the discharged employee,
1.21is made. In the case of a public employer where approval of expenditures by a governing
1.22board is required, the 24-hour period for payment does not commence until the date of
1.23the first regular or special meeting of the governing board following discharge of the
1.24employee. An employee's demand for payment under this section must be in writing
2.1but need not state the precise amount of unpaid wages or commissions. An employee
2.2may directly seek and recover payment from an employer under this section even if the
2.3employee is not a party to a contract that requires the employer to pay the employee at the
2.4rate of pay demanded by the employee, so long as the contract or any applicable statute,
2.5regulation, rule, ordinance, government resolution or policy, or other legal authority
2.6requires payment to the employee at the particular rate of pay. The employee shall be able
2.7to directly seek payment at the highest rate of pay provided in the contract or applicable
2.8law, and any other related remedies as provided in this section.
2.9(b) The wages and commissions must be paidat in the usual place manner of
2.10payment unless the employee requests that the wages and commissions be sent through
2.11the mails. If, in accordance with a request by the employee, the employee's wages and
2.12commissions are sent to the employee through the mail, the wages and commissions
2.13are paid as of the date of their postmark.
2.14EFFECTIVE DATE.This section is effective the day following final enactment.
2.15 Sec. 2. Minnesota Statutes 2012, section 181.14, is amended to read:
2.16181.14 PAYMENT TO EMPLOYEES WHO QUIT OR RESIGN;
2.17SETTLEMENT OF DISPUTES.
2.18 Subdivision 1. Prompt payment required. (a) When any such employee quits
2.19or resigns employment, the wages or commissions earned and unpaid at the time the
2.20employee quits or resigns shall be paid in full not later than the first regularly scheduled
2.21payday following the employee's final day of employment, unless an employee is subject
2.22to a collective bargaining agreement with a different provision. Wages are earned and
2.23unpaid if the employee was not paid for all time worked at the employee's regular rate
2.24of pay or at the rate required by law, including any applicable statute, regulation, rule,
2.25ordinance, government resolution or policy, contract, or other legal authority, whichever
2.26rate of pay is greater. If the first regularly scheduled payday is less than five calendar days
2.27following the employee's final day of employment, full payment may be delayed until
2.28the second regularly scheduled payday but shall not exceed a total of 20 calendar days
2.29following the employee's final day of employment.
2.30(b) Notwithstanding the provisions of paragraph (a), in the case of migrant workers,
2.31as defined in section181.85 , the wages or commissions earned and unpaid at the time the
2.32employee quits or resigns shall become due and payable within five days thereafter.
2.33 Subd. 2. Nonprompt payment. Wages or commissions not paid within the required
2.34time period shall become immediately payable upon the demand of the employee. If the
3.1employee's earned wages or commissions are not paid within 24 hours after the demand,
3.2the employer shall be liable to the employee foran additional sum a penalty equal to the
3.3amount of the employee's average daily earningsprovided in the contract of employment,
3.4 at the employee's regular rate of pay or the rate required by law, whichever rate is greater,
3.5 for every day, not exceeding 15 days in all, until such payment or other settlement
3.6satisfactory to the employee is made. The employer shall also be liable to the employee
3.7for the amount of wages and commissions that are earned and unpaid. An employee's
3.8demand for payment under this section must be in writing but need not state the precise
3.9amount of unpaid wages or commissions. An employee may directly seek and recover
3.10payment from an employer under this section even if the employee is not a party to a
3.11contract that requires the employer to pay the employee at the rate of pay demanded by the
3.12employee, so long as the contract or any applicable statute, regulation, rule, ordinance,
3.13government resolution or policy, or other legal authority requires payment to the employee
3.14at the particular rate of pay. The employee shall be able to directly seek payment at the
3.15highest rate of pay provided in the contract or applicable law, and any other remedies
3.16related thereto as provided in this section.
3.17 Subd. 3. Settlement of disputes. If the employer disputes the amount of wages
3.18or commissions claimed by the employee under the provisions of this section or section
3.19181.13
, and the employer makes a legal tender of the amount which the employer in
3.20good faith claims to be due, the employer shall not be liable for any sum greater than the
3.21amount so tendered and interest thereon at the legal rate, unless, in an action brought in
3.22a court having jurisdiction, the employee recovers a greater sum than the amount so
3.23tendered with interest thereon; and if, in the suit, the employee fails to recover a greater
3.24sum than that so tendered, with interest, the employee shall not pay the cost of the suit,
3.25otherwise the cost shall be paid by the employer.
3.26 Subd. 4. Employees entrusted with money or property. In cases where the
3.27discharged or quitting employee was, during employment, entrusted with the collection,
3.28disbursement, or handling of money or property, the employer shall have ten calendar days
3.29after the termination of the employment to audit and adjust the accounts of the employee
3.30before the employee's wages or commissions shall be paid as provided in this section,
3.31and the penalty herein provided shall apply in such case only from the date of demand
3.32made after the expiration of the period allowed for payment of the employee's wages or
3.33commissions.If, upon such audit and adjustment of the accounts of the employee, it is
3.34found that any money or property entrusted to the employee by the employer has not been
3.35properly accounted for or paid over to the employer, as provided by the terms of the
3.36contract of employment, the employee shall not be entitled to the benefit of sections
181.13
to
181.171, but the claim for unpaid wages or commissions of such employee, if any, shall
4.2be disposed of as provided by existing law No employer shall make any deduction, directly
4.3or indirectly, from the wages due or earned by any employee, who is not an independent
4.4contractor, for lost or stolen property, damage to property, or to recover any other claimed
4.5indebtedness running from employee to employer, except as permitted by section 181.79.
4.6 Subd. 5. Place of payment. Wages and commissions paid under this section shall
4.7be paidat in the usual place manner of payment unless the employee requests that the
4.8wages and commissions be sent to the employee through the mails. If, in accordance
4.9with a request by the employee, the employee's wages and commissions are sent to the
4.10employee through the mail, the wages and commissions shall be deemed to have been
4.11paid as of the date of their postmark for the purposes of this section.
4.12EFFECTIVE DATE.This section is effective the day following final enactment.
1.3modifying penalties; amending Minnesota Statutes 2012, sections 181.13; 181.14.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 181.13, is amended to read:
1.6181.13 PENALTY FOR FAILURE TO PAY WAGES PROMPTLY.
1.7(a) When any employer employing labor within this state discharges an employee,
1.8the wages or commissions actually earned and unpaid at the time of the discharge are
1.9immediately due and payable upon demand of the employee. Wages are actually earned
1.10and unpaid if the employee was not paid for all time worked at the employee's regular rate
1.11of pay or at the rate required by law, including any applicable statute, regulation, rule,
1.12ordinance, government resolution or policy, contract, or other legal authority, whichever
1.13rate of pay is greater. If the employee's earned wages and commissions are not paid within
1.1424 hours after demand, whether the employment was by the day, hour, week, month, or
1.15piece or by commissions, the employer is in default. In addition to recovering the wages
1.16and commissions actually earned and unpaid, the discharged employee may charge and
1.17collect a penalty equal to the amount of the employee's average daily earnings at the
1.18
1.19required by law, whichever rate is greater, for each day up to 15 days, that the employer is
1.20in default, until full payment or other settlement, satisfactory to the discharged employee,
1.21is made. In the case of a public employer where approval of expenditures by a governing
1.22board is required, the 24-hour period for payment does not commence until the date of
1.23the first regular or special meeting of the governing board following discharge of the
1.24employee. An employee's demand for payment under this section must be in writing
2.1but need not state the precise amount of unpaid wages or commissions. An employee
2.2may directly seek and recover payment from an employer under this section even if the
2.3employee is not a party to a contract that requires the employer to pay the employee at the
2.4rate of pay demanded by the employee, so long as the contract or any applicable statute,
2.5regulation, rule, ordinance, government resolution or policy, or other legal authority
2.6requires payment to the employee at the particular rate of pay. The employee shall be able
2.7to directly seek payment at the highest rate of pay provided in the contract or applicable
2.8law, and any other related remedies as provided in this section.
2.9(b) The wages and commissions must be paid
2.10payment unless the employee requests that the wages and commissions be sent through
2.11the mails. If, in accordance with a request by the employee, the employee's wages and
2.12commissions are sent to the employee through the mail, the wages and commissions
2.13are paid as of the date of their postmark.
2.14EFFECTIVE DATE.This section is effective the day following final enactment.
2.15 Sec. 2. Minnesota Statutes 2012, section 181.14, is amended to read:
2.16181.14 PAYMENT TO EMPLOYEES WHO QUIT OR RESIGN;
2.17SETTLEMENT OF DISPUTES.
2.18 Subdivision 1. Prompt payment required. (a) When any such employee quits
2.19or resigns employment, the wages or commissions earned and unpaid at the time the
2.20employee quits or resigns shall be paid in full not later than the first regularly scheduled
2.21payday following the employee's final day of employment, unless an employee is subject
2.22to a collective bargaining agreement with a different provision. Wages are earned and
2.23unpaid if the employee was not paid for all time worked at the employee's regular rate
2.24of pay or at the rate required by law, including any applicable statute, regulation, rule,
2.25ordinance, government resolution or policy, contract, or other legal authority, whichever
2.26rate of pay is greater. If the first regularly scheduled payday is less than five calendar days
2.27following the employee's final day of employment, full payment may be delayed until
2.28the second regularly scheduled payday but shall not exceed a total of 20 calendar days
2.29following the employee's final day of employment.
2.30(b) Notwithstanding the provisions of paragraph (a), in the case of migrant workers,
2.31as defined in section
2.32employee quits or resigns shall become due and payable within five days thereafter.
2.33 Subd. 2. Nonprompt payment. Wages or commissions not paid within the required
2.34time period shall become immediately payable upon the demand of the employee. If the
3.1employee's earned wages or commissions are not paid within 24 hours after the demand,
3.2the employer shall be liable to the employee for
3.3amount of the employee's average daily earnings
3.4 at the employee's regular rate of pay or the rate required by law, whichever rate is greater,
3.5 for every day, not exceeding 15 days in all, until such payment or other settlement
3.6satisfactory to the employee is made. The employer shall also be liable to the employee
3.7for the amount of wages and commissions that are earned and unpaid. An employee's
3.8demand for payment under this section must be in writing but need not state the precise
3.9amount of unpaid wages or commissions. An employee may directly seek and recover
3.10payment from an employer under this section even if the employee is not a party to a
3.11contract that requires the employer to pay the employee at the rate of pay demanded by the
3.12employee, so long as the contract or any applicable statute, regulation, rule, ordinance,
3.13government resolution or policy, or other legal authority requires payment to the employee
3.14at the particular rate of pay. The employee shall be able to directly seek payment at the
3.15highest rate of pay provided in the contract or applicable law, and any other remedies
3.16related thereto as provided in this section.
3.17 Subd. 3. Settlement of disputes. If the employer disputes the amount of wages
3.18or commissions claimed by the employee under the provisions of this section or section
3.20good faith claims to be due, the employer shall not be liable for any sum greater than the
3.21amount so tendered and interest thereon at the legal rate, unless, in an action brought in
3.22a court having jurisdiction, the employee recovers a greater sum than the amount so
3.23tendered with interest thereon; and if, in the suit, the employee fails to recover a greater
3.24sum than that so tendered, with interest, the employee shall not pay the cost of the suit,
3.25otherwise the cost shall be paid by the employer.
3.26 Subd. 4. Employees entrusted with money or property. In cases where the
3.27discharged or quitting employee was, during employment, entrusted with the collection,
3.28disbursement, or handling of money or property, the employer shall have ten calendar days
3.29after the termination of the employment to audit and adjust the accounts of the employee
3.30before the employee's wages or commissions shall be paid as provided in this section,
3.31and the penalty herein provided shall apply in such case only from the date of demand
3.32made after the expiration of the period allowed for payment of the employee's wages or
3.33commissions.
3.34
3.35
3.36
4.2
4.3or indirectly, from the wages due or earned by any employee, who is not an independent
4.4contractor, for lost or stolen property, damage to property, or to recover any other claimed
4.5indebtedness running from employee to employer, except as permitted by section 181.79.
4.6 Subd. 5. Place of payment. Wages and commissions paid under this section shall
4.7be paid
4.8wages and commissions be sent to the employee through the mails. If, in accordance
4.9with a request by the employee, the employee's wages and commissions are sent to the
4.10employee through the mail, the wages and commissions shall be deemed to have been
4.11paid as of the date of their postmark for the purposes of this section.
4.12EFFECTIVE DATE.This section is effective the day following final enactment.
