When it comes to employment rights, understanding wage and hour laws is crucial for both employees and employers. In Minnesota, these laws are designed to ensure fair compensation and protect workers from unfair labor practices. Read below to acquire helpful information regarding some of Minnesota’s most impactful wage and hour laws.
Minimum Wage in Minnesota
Minnesota has its own state-mandated minimum wage, which varies depending on the size of the employer. As of 2024, the state’s minimum wage is as follows:
- Large Employers (annual gross revenue of $500,000 or more): $10.85 per hour.
- Small Employers (annual gross revenue less than $500,000): $8.85 per hour.
- Training Wage (for employees under 20 years old for the first 90 days): $8.85 per hour.
- Youth Wage (for employees under 18 years old working in non-agricultural jobs): $8.85 per hour.
Unlike some states, Minnesota does not allow employers to use tip credit to meet minimum wage requirements. This means that tipped employees must be paid at least the applicable state minimum wage before tips are calculated.
Overtime Laws
Minnesota law follows federal Fair Labor Standards Act (FLSA) guidelines when it comes to overtime pay. Employees who work more than 40 hours in a workweek are entitled to 1.5 times their regular rate of pay for every hour worked beyond 40 hours. Certain employees, such as salaried professionals, may be exempt from overtime under specific conditions.
Meal and Rest Breaks
Minnesota law requires employers to provide meal and rest breaks to employees:
- Meal Breaks: Employees working eight or more hours must receive a sufficient unpaid meal break (typically at least 30 minutes) where they are completely relieved of duties.
- Rest Breaks: Employers must provide adequate paid rest breaks (usually at least 10 minutes for every four consecutive hours worked). Also, employees must have time to use the restroom as needed.
Payday and Final Paycheck Rules
Minnesota law requires employers to pay employees at least once every 31 days. If an employee leaves a job, whether voluntarily or involuntarily, they must receive their final paycheck promptly:
- Terminated employees must receive their final paycheck within 24 hours of demand.
- Employees who resign must receive their wages by the next scheduled payday.
Wage Theft Protection
To protect employees from wage theft, Minnesota law requires employers to provide detailed earnings statements that include:
- Total hours worked;
- Rate of pay and basis of pay (hourly, salary, commission, etc.);
- Any deductions taken; and
- Employer’s legal name and address.
Employers must provide written notice of wage agreements and employment terms when an employee starts a job.
Misclassification of Employees
Some employers improperly classify workers as independent contractors to avoid paying overtime and benefits. In Minnesota, misclassification can result in significant penalties. Employees who suspect misclassification can file complaints with the Minnesota Department of Labor and Industry.
Enforcement and Legal Remedies
Employees who believe their employer is violating wage and hour laws can file a complaint with the Minnesota Department of Labor and Industry or pursue a legal claim. Remedies for wage violations may include unpaid wages, penalties, and attorneys' fees.
Final Thoughts
Minnesota's wage and hour laws are in place to protect workers and ensure fair pay. Employers must remain compliant and employees should be proactive about knowing their rights. If you have concerns about wage violations, consult an experienced employment law attorney to help you navigate your options and seek justice.
For more information or legal assistance, contact RWI Law today to discuss your case!