Bill Text: MN SF602 | 2013-2014 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.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. The discharged employee may charge
1.16and collect a penalty equal to the amount of the employee's average daily earnings at the
1.17 rate agreed upon in the contract of employment, employee's regular rate of pay or the rate
1.18required by law, whichever rate is greater, for each day up to 15 days, that the employer is
1.19in default, until full payment or other settlement, satisfactory to the discharged employee,
1.20is made. The discharged employee may recover an additional amount as compensatory
1.21damages equal to the amount of wages and commissions that were earned and unpaid. In
1.22the case of a public employer where approval of expenditures by a governing board is
1.23required, the 24-hour period for payment does not commence until the date of the first
1.24regular or special meeting of the governing board following discharge of the employee.
2.1 An employee's demand for payment under this section need not be in writing or state the
2.2precise amount of unpaid wages or commissions. An employee may directly seek and
2.3recover payment from an employer under this section even if the employee is not a party
2.4to a contract that requires the employer to pay the employee at the rate of pay demanded
2.5by the employee, so long as the contract or any applicable statute, regulation, rule,
2.6ordinance, government resolution or policy, or other legal authority requires payment to
2.7the employee at the particular rate of pay. The employee shall be able to directly seek
2.8payment at the highest rate of pay provided in the contract or applicable law, and any other
2.9related remedies as provided in this section.
2.10(b) The wages and commissions must be paidat in the usual place manner of
2.11payment unless the employee requests that the wages and commissions be sent through
2.12the mails. If, in accordance with a request by the employee, the employee's wages and
2.13commissions are sent to the employee through the mail, the wages and commissions
2.14are paid as of the date of their postmark.
2.15EFFECTIVE DATE.This section is effective the day following final enactment.
2.16 Sec. 2. Minnesota Statutes 2012, section 181.14, is amended to read:
2.17181.14 PAYMENT TO EMPLOYEES WHO QUIT OR RESIGN;
2.18SETTLEMENT OF DISPUTES.
2.19 Subdivision 1. Prompt payment required. (a) When any such employee quits
2.20or resigns employment, the wages or commissions earned and unpaid at the time the
2.21employee quits or resigns shall be paid in full not later than the first regularly scheduled
2.22payday following the employee's final day of employment, unless an employee is subject
2.23to a collective bargaining agreement with a different provision. Wages are earned and
2.24unpaid if the employee was not paid for all time worked at the employee's regular rate
2.25of pay or at the rate required by law, including any applicable statute, regulation, rule,
2.26ordinance, government resolution or policy, contract, or other legal authority, whichever
2.27rate of pay is greater. If the first regularly scheduled payday is less than five calendar days
2.28following the employee's final day of employment, full payment may be delayed until
2.29the second regularly scheduled payday but shall not exceed a total of 20 calendar days
2.30following the employee's final day of employment.
2.31(b) Notwithstanding the provisions of paragraph (a), in the case of migrant workers,
2.32as defined in section181.85 , the wages or commissions earned and unpaid at the time the
2.33employee quits or resigns shall become due and payable within five days thereafter.
3.1 Subd. 2. Nonprompt payment. Wages or commissions not paid within the required
3.2time period shall become immediately payable upon the demand of the employee. If the
3.3employee's earned wages or commissions are not paid within 24 hours after the demand,
3.4the employer shall be liable to the employee foran additional sum a penalty equal to the
3.5amount of the employee's average daily earningsprovided in the contract of employment,
3.6 at the employee's regular rate of pay or the rate required by law, whichever rate is greater,
3.7 for every day, not exceeding 15 days in all, until such payment or other settlement
3.8satisfactory to the employee is made. The employer shall also be liable to the employee for
3.9an additional amount as compensatory damages in the amount of wages and commissions
3.10that are earned and unpaid. An employee's demand for payment under this section need not
3.11be in writing or state the precise amount of unpaid wages or commissions. An employee
3.12may directly seek and recover payment from an employer under this section even if the
3.13employee is not a party to a contract that requires the employer to pay the employee at the
3.14rate of pay demanded by the employee, so long as the contract or any applicable statute,
3.15regulation, rule, ordinance, government resolution or policy, or other legal authority
3.16requires payment to the employee at the particular rate of pay. The employee shall be able
3.17to directly seek payment at the highest rate of pay provided in the contract or applicable
3.18law, and any other remedies related thereto as provided in this section.
3.19 Subd. 3. Settlement of disputes. If the employer disputes the amount of wages
3.20or commissions claimed by the employee under the provisions of this section or section
3.21181.13
, and the employer makes a legal tender of the amount which the employer in
3.22good faith claims to be due, the employer shall not be liable for any sum greater than the
3.23amount so tendered and interest thereon at the legal rate, unless, in an action brought in
3.24a court having jurisdiction, the employee recovers a greater sum than the amount so
3.25tendered with interest thereon; and if, in the suit, the employee fails to recover a greater
3.26sum than that so tendered, with interest, the employee shall not pay the cost of the suit,
3.27otherwise the cost shall be paid by the employer.
3.28 Subd. 4. Employees entrusted with money or property. In cases where the
3.29discharged or quitting employee was, during employment, entrusted with the collection,
3.30disbursement, or handling of money or property, the employer shall have ten calendar days
3.31after the termination of the employment to audit and adjust the accounts of the employee
3.32before the employee's wages or commissions shall be paid as provided in this section,
3.33and the penalty herein provided shall apply in such case only from the date of demand
3.34made after the expiration of the period allowed for payment of the employee's wages or
3.35commissions.If, upon such audit and adjustment of the accounts of the employee, it is
3.36found that any money or property entrusted to the employee by the employer has not been
4.1properly accounted for or paid over to the employer, as provided by the terms of the
4.2contract of employment, the employee shall not be entitled to the benefit of sections
4.3181.13 to
181.171, but the claim for unpaid wages or commissions of such employee,
4.4if any, shall be disposed of as provided by existing law No employer shall make any
4.5deduction, directly or indirectly, from the wages due or earned by any employee unless
4.6authorized by section 181.79.
4.7 Subd. 5. Place of payment. Wages and commissions paid under this section shall
4.8be paidat in the usual place manner of payment unless the employee requests that the
4.9wages and commissions be sent to the employee through the mails. If, in accordance
4.10with a request by the employee, the employee's wages and commissions are sent to the
4.11employee through the mail, the wages and commissions shall be deemed to have been
4.12paid as of the date of their postmark for the purposes of this section.
4.13EFFECTIVE 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. The discharged employee may charge
1.16and collect a penalty equal to the amount of the employee's average daily earnings at the
1.17
1.18required by law, whichever rate is greater, for each day up to 15 days, that the employer is
1.19in default, until full payment or other settlement, satisfactory to the discharged employee,
1.20is made. The discharged employee may recover an additional amount as compensatory
1.21damages equal to the amount of wages and commissions that were earned and unpaid. In
1.22the case of a public employer where approval of expenditures by a governing board is
1.23required, the 24-hour period for payment does not commence until the date of the first
1.24regular or special meeting of the governing board following discharge of the employee.
2.1 An employee's demand for payment under this section need not be in writing or state the
2.2precise amount of unpaid wages or commissions. An employee may directly seek and
2.3recover payment from an employer under this section even if the employee is not a party
2.4to a contract that requires the employer to pay the employee at the rate of pay demanded
2.5by the employee, so long as the contract or any applicable statute, regulation, rule,
2.6ordinance, government resolution or policy, or other legal authority requires payment to
2.7the employee at the particular rate of pay. The employee shall be able to directly seek
2.8payment at the highest rate of pay provided in the contract or applicable law, and any other
2.9related remedies as provided in this section.
2.10(b) The wages and commissions must be paid
2.11payment unless the employee requests that the wages and commissions be sent through
2.12the mails. If, in accordance with a request by the employee, the employee's wages and
2.13commissions are sent to the employee through the mail, the wages and commissions
2.14are paid as of the date of their postmark.
2.15EFFECTIVE DATE.This section is effective the day following final enactment.
2.16 Sec. 2. Minnesota Statutes 2012, section 181.14, is amended to read:
2.17181.14 PAYMENT TO EMPLOYEES WHO QUIT OR RESIGN;
2.18SETTLEMENT OF DISPUTES.
2.19 Subdivision 1. Prompt payment required. (a) When any such employee quits
2.20or resigns employment, the wages or commissions earned and unpaid at the time the
2.21employee quits or resigns shall be paid in full not later than the first regularly scheduled
2.22payday following the employee's final day of employment, unless an employee is subject
2.23to a collective bargaining agreement with a different provision. Wages are earned and
2.24unpaid if the employee was not paid for all time worked at the employee's regular rate
2.25of pay or at the rate required by law, including any applicable statute, regulation, rule,
2.26ordinance, government resolution or policy, contract, or other legal authority, whichever
2.27rate of pay is greater. If the first regularly scheduled payday is less than five calendar days
2.28following the employee's final day of employment, full payment may be delayed until
2.29the second regularly scheduled payday but shall not exceed a total of 20 calendar days
2.30following the employee's final day of employment.
2.31(b) Notwithstanding the provisions of paragraph (a), in the case of migrant workers,
2.32as defined in section
2.33employee quits or resigns shall become due and payable within five days thereafter.
3.1 Subd. 2. Nonprompt payment. Wages or commissions not paid within the required
3.2time period shall become immediately payable upon the demand of the employee. If the
3.3employee's earned wages or commissions are not paid within 24 hours after the demand,
3.4the employer shall be liable to the employee for
3.5amount of the employee's average daily earnings
3.6 at the employee's regular rate of pay or the rate required by law, whichever rate is greater,
3.7 for every day, not exceeding 15 days in all, until such payment or other settlement
3.8satisfactory to the employee is made. The employer shall also be liable to the employee for
3.9an additional amount as compensatory damages in the amount of wages and commissions
3.10that are earned and unpaid. An employee's demand for payment under this section need not
3.11be in writing or state the precise amount of unpaid wages or commissions. An employee
3.12may directly seek and recover payment from an employer under this section even if the
3.13employee is not a party to a contract that requires the employer to pay the employee at the
3.14rate of pay demanded by the employee, so long as the contract or any applicable statute,
3.15regulation, rule, ordinance, government resolution or policy, or other legal authority
3.16requires payment to the employee at the particular rate of pay. The employee shall be able
3.17to directly seek payment at the highest rate of pay provided in the contract or applicable
3.18law, and any other remedies related thereto as provided in this section.
3.19 Subd. 3. Settlement of disputes. If the employer disputes the amount of wages
3.20or commissions claimed by the employee under the provisions of this section or section
3.22good faith claims to be due, the employer shall not be liable for any sum greater than the
3.23amount so tendered and interest thereon at the legal rate, unless, in an action brought in
3.24a court having jurisdiction, the employee recovers a greater sum than the amount so
3.25tendered with interest thereon; and if, in the suit, the employee fails to recover a greater
3.26sum than that so tendered, with interest, the employee shall not pay the cost of the suit,
3.27otherwise the cost shall be paid by the employer.
3.28 Subd. 4. Employees entrusted with money or property. In cases where the
3.29discharged or quitting employee was, during employment, entrusted with the collection,
3.30disbursement, or handling of money or property, the employer shall have ten calendar days
3.31after the termination of the employment to audit and adjust the accounts of the employee
3.32before the employee's wages or commissions shall be paid as provided in this section,
3.33and the penalty herein provided shall apply in such case only from the date of demand
3.34made after the expiration of the period allowed for payment of the employee's wages or
3.35commissions.
3.36
4.1
4.2
4.3
4.4
4.5deduction, directly or indirectly, from the wages due or earned by any employee unless
4.6authorized by section 181.79.
4.7 Subd. 5. Place of payment. Wages and commissions paid under this section shall
4.8be paid
4.9wages and commissions be sent to the employee through the mails. If, in accordance
4.10with a request by the employee, the employee's wages and commissions are sent to the
4.11employee through the mail, the wages and commissions shall be deemed to have been
4.12paid as of the date of their postmark for the purposes of this section.
4.13EFFECTIVE DATE.This section is effective the day following final enactment.
