Employers should be reminded that on July 1, 2019, many provisions of the new Minnesota Wage Theft Law will go into effect. The new law includes requirements regarding the timing of wage payments, written wage notices, earning statements, and recordkeeping. With regard to the timing of wage payments, the Wage Theft Law requires employers to pay all wages, now defined to include salary, earnings, and gratuities, at least every 31 days and all earned commissions…

Per the Minneapolis Minimum Wage Ordinance, the minimum wage for small and large businesses will increase in the next month. Beginning  July 1, 2019, large employers, which are businesses with more than 100 employees, must pay at least $12.25 per hour to their employees. Small employers, which are businesses with 100 or fewer employees, must pay $11.00 per hour. Importantly, tips and gratuities do not affect the minimum wage an employer must pay to its…

The Minnesota Legislature is considering two bills related to the standard for sexual harassment claims under the Minnesota Human Rights Act (MHRA). On March 21, the Minnesota House passed H.F. 10, which seeks to change the definition of “sexual harassment” under the MHRA. The proposed language provides that conduct need not be “severe or pervasive” to constitute sexual harassment. A similar bill was introduced in 2018 and failed. If the proposed bill is successful, it…

On March 7, 2019, the Department of Labor (DOL) announced a proposed rule to raise salary requirements for overtime exemptions for executive, administrative, and professional employees. Currently, the salary threshold for exempt employees is $455 per week, or $23,660 annually. Under the Fair Labor Standards Act (FLSA), employees below this salary threshold must be paid overtime for hours worked in excess of 40 hours per week. Under the proposed rule, the salary threshold for the…

On March 4, 2019 the Minnesota Court of Appeals upheld a Minneapolis city ordinance setting the minimum wage in the city at $15.00 per hour. Minneapolis company Graco, Inc. sued the City of Minneapolis in  November 2017, arguing that the minimum wage law was unlawful in light of state laws regulating the minimum wage. In April 2018, the district court held that the Minneapolis ordinance was lawful. Graco appealed to the Minnesota Court of Appeals.…

One area of employment law that often trips up Minnesota companies is whether a worker should be considered an “employee” or an “independent contractor.” In general, independent contractors are considered to “be their own bosses.” In other words, because employers have less control over them, independent contractors are not subject to employment laws relating to wages, workplace health and safety, and withholding taxes. But the line between an independent contractor and an employee can be…

Last week the Eighth Circuit Court of Appeals held in Ayala v. CyberPower Sys. (USA), Inc. that an employee’s compensation agreement did not modify his status as an at-will employee. No. 17-1852, 2018 WL 2703102, at *1 (8th Cir. June 6, 2018). In Ayala, the plaintiff entered into an agreement with defendant CyberPower that detailed the salary and bonus structure for his position as Executive Vice President of CyberPower. The agreement provided that it “outlines…