St. Paul, MN has enacted a wage theft ordinance designed to strengthen worker protections. According to the press release “wage theft occurs any time employers fail to pay wages employees are legally entitled to, including paying below minimum wage, not paying overtime, requiring work without pay, denying legal breaks, misclassification, withholding tips, non-payment of fringe benefits, and illegal deductions.” The ordinance is effective Jan. , 2025.
The details:
The wage theft ordinance is aligned with current Minnesota law and does not impose any new requirements on employers or employees, however, “it does give the St. Paul Human Rights and Equal Economic Opportunity Department (HREEO) labor standards investigators the enforcement capacity to investigate allegations of wage theft.”
Highlights:
Employee Wage Notice: (Consistent with Minn. Stat. § 181.032(d))
At the start of employment, employers must provide each employee a written notice containing the following information:
· The rate or rates of pay and basis thereof, including whether the employee is paid by the hour, shift, day, week, salary, piece, commission, or other method, and the specific application of any additional rates.
· Allowances, if any, claimed pursuant to permitted meals and lodging.
· Paid vacation, sick time, or other paid time-off accruals and terms of use.
· The employee's employment status and whether the employee is exempt from minimum wage, overtime, and other provisions of Chapter 177 and on what basis.
· A list of deductions that may be made from the employee's pay.
· The number of days in the pay period, the regularly scheduled pay day, and the pay day on which the employee will receive the first payment of wages earned.
· The legal name of the employer and the operating name of the employer if different from the legal name.
· The physical address of the employer's main office or principal place of business, and a mailing address if different.
· The telephone number of the employer.
· The date on which the employment is to begin.
· Notice of City minimum wage rates and the employee’s entitlement to such rates.
· A statement that the sharing of gratuities is voluntary.
· The overtime policy applicable to the employee's position, if any, including when overtime must be paid and the applicable rate or rates of pay.
The written notice may provide the information required above by explicit reference to an employee handbook, collective bargaining agreement, or similar document if employees are directed to the specific handbook sections where the information is contained.
Statement of Earnings (Consistent with Minn. Stat. § 181.032(b))
At the end of each pay period, the employer must provide each employee an earnings statement, either in writing or by electronic means, covering that pay period. An employer who chooses to provide an earnings statement by electronic means must provide an employee access to an employer-owned computer during an employee's regular working hours to review and print earnings statements and must make statements available for review or printing for a period of three years.
The earnings statement must include the following information:
· The name of the employee.
· The rate or rates of pay and basis thereof, including whether the employee is paid by hour, shift, day, week, salary, piece, commission, or other method.
· Allowances, if any, claimed pursuant to permitted meals and lodging.
· The total number of hours worked by the employee unless exempt.
· The total amount of gross pay earned by the employee during that period.
· A list of deductions made from the employee's pay.
· Any amount deducted by the employer.
· The net amount of pay after all deductions are made.
· The date on which the pay period ends.
· The legal name of the employer and the operating name of the employer if different from the legal name.
· The physical address of the employer's main office or principal place of business, and a mailing address if different.
· The telephone number of the employer.
Employer recordkeeping
An employer must keep the following employee records for at least three years after an employment separation:
· The name, address, phone number, email, and position of each employee.
· The rate of pay, and the amount paid each pay period to each employee.
· The hours worked each day and each workweek for employees paid on an hourly basis; the number of pieces completed for employees paid at a piece rate; and the method of calculating commissions for employees paid on a commission basis.
· The statements of earnings as required.
· The employee wage notice(s), including any changes.
· A copy of all personnel policies provided to the employee, including the date the policies were given to the employee and a brief description of the policies.
· Other information necessary and appropriate to enforce the law.
As noted above, the statement of earnings must be retained for at least three years after the date the statement was provided to the employee.
Notice and Posting:
HREEO must publish and make available to employers notices that are suitable for posting in the workplace, which inform employees of their rights under the wage theft protection ordinance.
Employers are required to:
· Post the notice at any workplace or job site in St. Paul where any employee works where the notice can be readily observed and easily reviewed.
· Provide the notice on an annual basis to employees advising employees of their right to report a violation. Employers are prohibited from retaliating against employees for reporting a violation.
· Include a notice in the handbook in cases where the employer provides its employees with a handbook.
Next steps:
Employers subject to the St. Paul wage theft legislation should review the ordinance and implement policies and procedures necessary to comply with the requirements prior to the effective date of Jan. 1, 2025.
Have questions?
Please contact your HR Business Partner with any questions.