Employers and workers: Know your wage-related requirements and rights



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Wage and Hour Bulletin

"January 2026"

January resolution:  Start the year right by avoiding wage theft

Bag of money on the background of Judge hammer

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 [ [link removed] ].
* Track all hours worked accurately.
* Pay workers on regular paydays.
* Provide earnings statements [ [link removed] ].
* Classify [ [link removed] ] 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 [ [link removed] ].
* View a how-to-prevent-wage-theft video in English [ [link removed] ], Hmong [ [link removed] ], Somali [ [link removed] ] and Spanish [ [link removed] ].


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A hand is seen reaching for color-coded files in a cabinet drawer
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 [ [link removed] ], Hmong [ [link removed] ], Somali [ [link removed] ]and Spanish [ [link removed] ].
* View/print Minnesota's labor standards recordkeeping laws [ [link removed] ].


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Doctor hand arranging wood block with healthcare medical icons. Health care and medical insurance concept.
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 [ [link removed] ].

*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 [ [link removed] ].

*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 [ [link removed] ].

*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 [ [link removed] ].



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Attend our next webinar:  ESST

*

Learn about how ESST works, who it covers and what it means for both workers and employers.


* Feb. 11, from 2-3 p.m. Register for the webinar [ [link removed] ].

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2025 Minnesota minimum-wage report available

DLI has released the 2025 minimum-wage report. It reviews recent legislative changes, compares state and municipal rates, and examines how wages relate to inflation, poverty levels and other earnings.


* Read the report [ [link removed] ].

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January featured case

DLI received a complaint that an employee's health insurance was improperly canceled during pregnancy leave, resulting in more than $15,000 in medical expenses. The employer also failed to provide the employee the required Women's Economic Security Act (WESA) notice.

After DLI intervention, the employer retroactively reinstated health insurance to cover all medical costs, updated its employee handbook to comply with WESA and was reminded of its obligation to maintain health coverage during pregnancy and parental leave.

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Question of the month

*What are the recordkeeping requirements related to personnel policies? *

Employers must keep a list of the personnel policies provided to an employee, including the date the policies were given to the employee and a brief description of the policies. This requirement applies to all employees, not just new employees. Records must be kept by an employer for at least three years.

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"Wage and Hour Bulletin" archive

Access past editions of the "Wage and Hour Bulletin" [ [link removed] ].

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Questions?

Labor Standards serves the people of Minnesota by providing
information about the state's wage, hour and employment laws.

Phone:  651-284-5075 or 800-342-5354
Email:  [email protected]
Website:  dli.mn.gov [ [link removed] ]





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minnesota department of labor and industry [ [link removed] ]

*Minnesota Department of Labor and Industry  |  www.dli.mn.gov [ [link removed] ] *

651-284-5005 or 800-342-5354

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