The Minnesota Wage Payment Act seems like it should be rather simple, but it’s perhaps the most complicated employment law in the state. Full of traps for the unwary, the law can spell big trouble for even innocent mistakes.
The law covers all Minnesota private employers, even those with only one employee, and requires at least one payday per calendar month unless an employer specifically sets a more frequent pay period. Employers must pay all wages earned within a month.
Minnesota employers may pay employees via payroll cards, which are similar to bank ATM cards, but they may not require employees to use this payment method.
If you choose to use payroll cards, you must register with the state’s Department of Labor & Industry (http://workplace.doli.state.mn.us/paycard/).
How payroll cards work: You electronically transfer wages into an account the employee owns, and the employee uses the card to access the funds. You must disclose any fees the card issuer (usually a bank) may charge for this service, and you can’t charge a fee for providing payroll cards. You must inform employees of all possible alternatives for wage payment, such as direct deposit or paper check.
By law, the payroll card may not be linked to any type of credit, such as payday loans and similar arrangements.
Payment upon employee’s death
In the event of an employee’s death, you must pay the estate or surviving spouse any amount due the employee up to $10,000 upon request.
Employers may request documentation that the person requesting the pay has a legitimate right to it.
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