When a terminated employee needs to be paid under Minnesota law depends on whether the employee voluntarily resigns or is involuntarily terminated. The applicable rules are as follows:
Voluntary Terminations: When an employee voluntarily quits or resigns, the employer typically must pay the employee in full not later than the first regularly scheduled payday following the employee’s final day of employment, unless the employee is subject to a collective bargaining agreement with a different provision. If the first regularly scheduled payday is less than five calendar days after the employee’s final day of employment, full payment may be delayed until the second regularly scheduled payday, but shall not exceed a total of 20 calendar days following the employee’s final day of employment. See Minn. Stat. § 181.14.
Involuntary Terminations: When an employee is involuntarily terminated, the wages and commissions actually earned and unpaid at the time of the discharge are immediately due and payable upon demand of the employee. The employer must pay final wages to the involuntarily terminated employee within 24 hours of his or her demand. See Minn. Stat. § 181.13.
