A new Minnesota law designed to curb wage theft took effect July 1 and strengthens consequences for employers who fail to pay employees, according to www.duluthnewstribune.com.
The law requires employers to keep certain employment documents and present them to the Department of Labor and Industry upon request; an employer failing to do so could receive up to a $5,000 fine.
The law also strengthens consequences for employers engaged in wage theft. Effective Aug. 1, an employer found guilty of stealing wages could face up to 20 years in prison and a $100,000 fine.
In addition, the law requires employers to provide written employment terms; prohibits an employer from retaliating against employees who complain to the state or assert their rights; and gives the government greater authority and access to those documents and workplaces for its investigations.
DLI is boosting enforcement; the number of DLI investigators has doubled twice and soon will reach 14 people total. Commissioner Nancy Leppink says the increased numbers will help the agency conduct workplace inspections; identify the businesses and industries most likely to engage in wage theft; and follow up with the 40,000 people who submit wage-theft complaints.
“Right now, the majority of the resources are being spent responding to complaints,” Leppink says. “These additional resources will allow the department to be more proactive in conducting inspections, and to be more able to devote its resources to sectors where we know we have problems.”
