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Failing to pay workers on time may cost you a big penalty

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in Compensation and Benefits,Firing,Human Resources

In Minnesota, employees are supposed to be paid promptly and receive an accounting of their time worked. Failure to comply may mean you’ll have to pay a penalty.

Recent case: Chris agreed to work as a truck driver and claimed he was told he would receive 25% of the gross income realized from the deliveries he made. He understood this would equal at least $17.50 per hour.

After just 12 days, Chris was terminated. He sued under Minnesota wage-and-hour law, alleging he hadn’t been paid promptly and didn’t get a paystub showing how his earnings were calculated.

The court awarded him the equivalent of 15 days’ wages as a penalty for failing to pay on time. (Schroeder v. Kubes, No. A12-0357, Court of Appeals of Minnesota, 2013)

Final note: Fired employees must be paid their wages within 24 hours of demand.

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