A new year is a great time for fresh starts, including ensuring wages are paid correctly and on time.

What is wage theft?

Wage theft happens when an employer does not pay a worker what they are legally owed, including:

• Not paying for all hours worked.
• Paying less than the minimum wage.
• Failing to pay overtime.
• Illegal deductions from paychecks.

How to avoid wage theft

Wage theft prevention starts with knowledge and compliant practices:

• Provide wage notices.
• Track all hours worked accurately.
• Pay workers on regular paydays.
• Provide earnings statements.
• Classify workers correctly.
• Understand Minnesota and federal wage laws, including minimum wage and overtime requirements.

Workers can also record their days and hours worked and their pay received, in addition to retaining documents regarding their pay and hours, to help with wage recovery from their employer should wage theft occur.

More information

• For more information, visit dli.mn.gov/wagetheft.
• View a how-to-prevent-wage-theft video in English, Hmong, Somali and Spanish.

New year checklist:  Recordkeeping tips for employers

January is an ideal time to review your records and make sure you are starting the year in compliance.

Required records to keep

• Minnesota employers are required to keep certain records, including:
  • employee name, address and occupation;
  • hours worked each day and workweek;
  • rate(s) of pay;
  • a list of personnel policies provided to employees;
  • wage notices; and
  • earnings statements.

Best practices for recordkeeping

• Keep records accessible for at least three years as required by law.
• Use consistent timekeeping systems for all employees.
• Update records promptly when pay rates, schedules or job duties change.
• Train supervisors about accurate time tracking and documentation.

Employers are permitted to maintain records in electronic format, provided that the records can be promptly accessed by the Minnesota Department of Labor and Industry (DLI) upon request and that DLI can obtain copies during an inspection.

More information

• View a recordkeeping video in English, Hmong, Somali and Spanish.
• View/print Minnesota's labor standards recordkeeping laws.

Understanding earned sick and safe time, Minnesota Paid Leave and Minnesota Pregnancy and Parental Leave:  What's the difference?

Minnesota has three separate laws that provide time off from work. While they are related, they serve different purposes and work in different ways.

Earned sick and safe time (ESST)

• Earned through hours worked
• Paid by employer
• Covers routine illness and safety needs
• Often used in small amounts

For more information, visit sickleave.mn.gov.

Minnesota Paid Leave

• State-administered program
• Covers medical, caring, bonding and safety leave
• Used for longer periods

Paid Leave is administered by the Minnesota Department of Employment and Economic Development, aside from Paid Leave job protections, which are enforced by DLI. For more information, visit paidleave.mn.gov.

Minnesota Pregnancy and Parental Leave Law

• Minnesota workers eligible regardless of size of employer or how long they have worked for the employer
• Employees may take up to 12 weeks of unpaid leave during or following pregnancy
• Used for longer periods

For more information, visit dli.mn.gov/parental-leave.

Why this matters

Employees may be eligible for ESST, Paid Leave, and Pregnancy and Parental Leave, but they are not the same benefit. Knowing which programs apply helps workers get the time off they need and helps employers apply the law correctly.

For a detailed comparison of ESST and Paid Leave view the full handout.