Payment of Wages: Minnesota
Federal law and guidance on this subject should be reviewed together with this section.
Author: Megan Anderson, Gray Plant Mooty
- Minnesota employers may pay employees in cash or by check, direct deposit or electronic paycard, if certain requirements are met. Penalties are imposed for employer violations. See Wage Payment Methods.
- Most Minnesota employees must be paid at least once every 31 days on a regularly scheduled payday. Migrant workers, workers on transitory projects and employees of public service corporations must be paid more frequently. Penalties are imposed for employer violations. See Pay Frequency.
- Employers are either permitted to make, or prohibited from making, certain types of deductions from the wages of employees. Deductions must not result in an employee earning less than the applicable minimum wage. Except in limited circumstances, the amount of any permitted deduction may not exceed the amount established by law for wage garnishment. Civil penalties are imposed for noncompliance. See Permitted and Prohibited Wage Deductions.
- Employers must provide each employee an itemized pay statement for each payment of wages containing certain information required by Minnesota law. Employers may issue earnings statements electronically if certain conditions are met. The Minnesota Department of Labor and Industry is authorized to file a claim against a noncompliant employer. An employer covered by the Minneapolis Paid Sick and Safe Time Ordinance or the St. Paul Earned Sick and Safe Time Ordinance may comply with employee-notification requirements by including the information on pay statements. See Pay Statement Requirements.
- When employment ends, an employee must be timely paid all final earned wages. When employees must be paid depends on whether the employee resigned or was involuntarily terminated. Under the Minneapolis Paid Sick and Safe Time Ordinance and the St. Paul Earned Sick and Safe Time Ordinance, accrued paid sick time does not have to be included in termination pay. See Termination Pay.
- Upon an employee's death, final earned wages must be paid in accordance with rules that vary depending on whether the employee's estate is a probate estate. See Deceased Employee Wages.
- Wages are considered abandoned property if unclaimed for one year. Employers must file a report of unclaimed wages, notify the affected employee and remit the wages to the state according to specific procedures. See Unclaimed Wages.