Failing to pay workers on time may cost you a big penalty — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
  • LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

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

Get PDF file

by on
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.

Leave a Comment

Previous post:

Next post: