It seems that everyone is all wound-up over Minnesota’s new Wage Theft Law that goes into effect on July 1, 2019. We know new laws can be complicated and difficult. But this one really isn’t. So, let’s all relax a little and read on.
The first part of the law is a no brainer:
- Employers must pay employees in a timely manner, at least minimum wage, and pay overtime, if applicable. If this isn’t happening now, let’s talk.
- Paystubs must be given out with each pay period and describe what the pay and deductions are for. Be sure to have the employer’s name, address and telephone number on there. None of this is new. Not already doing that? Penalties are higher with the new law, so we recommend you start ASAP.
Next, freshen up your offer letters a little, and make sure these questions are already answered:
- Start date? How much will the employee make? Salary or hourly? Exempt or nonexempt? Is he or she paid weekly, biweekly, twice monthly, monthly? Is there a commission structure? What shift (if applicable)? What does PTO/vacation and sick time accrual look like? What are the deductions being paid? Employer name, address, and telephone number? See, we bet you already have all of this.
- The new necessary info for the offer letter as of July 1 is:
- The date of the first payday.
- Spelling out any allowances (like meals and lodging). This is rare for employers, by the way.
- An offer to put the offer letter in a different language if needed. The Department of Labor and Industry (DLI) will provide, in multiple languages, the text that must be included with the notice so don’t sweat this.
If you don't do offer letters, then make sure this required information is in a wage notice, like this.
A new rule that goes into effect next month is when employers roll out a new policy, they’ll need all employees to acknowledge it, with a date.
- We suggest reviewing and updating your policies once a year. More than that may be a drag to keep going back to everyone for their acknowledgment of the new policy change.
Lastly, something you are probably already doing, but now must:
- When an employee’s wages change, he or she needs to acknowledge it. Someone is getting a raise? Great! Write her an email, letter or performance review telling her she’s going to be making more money, and she needs to acknowledge the increase.
That’s it. See? Easy peasy. Yes, it’s a little more documentation to gather and retain for three years. But hey, we are HR professionals. We love documentation!