Updates to Minnesota wage theft legislation

Wage theft is defined as failure to pay wages or benefits that are owed to an employee.  Some of the more common examples include paying less than minimum wage or pressuring hourly staff to work more hours than are reported.  According to the Economic Policy Institute, the amount could be as much as $50 billion per year which dwarfs other offenses such as robberies.  In 2019, Minnesota passed a law that requires employers to provide notices to employees regarding wages and earning statements.  The law includes civil and criminal penalties.  In the 2023 legislative session, Minnesota is considering a bill to increase enforcement.  Specifically, this bill proposes that the responsibility can shift upstream from subcontractors to general contractors for actions of the subcontractors.  This would be a significant oversight burden which may or may not pass, however, regardless of the outcome of this legislation, all businesses should understand and ensure compliance with the existing laws and regulations in Minnesota and other states.