Minnesota Payroll Rules

Frequency of Payments

You must pay employees at least once a month on regularly scheduled paydays.

If you have any employees who work on a project of a transitory nature (construction; paving, repair, or maintenance of a highway, sewers, or ditches; clearing land; or any other work that requires the employee to move), you must pay your employees at least once every 15 days.

If you’re a public service corporation, you must pay your employees at least twice per month. Payday must be within 15 days after the end of the pay period.

Manner of Payments

You may pay your employees by cash or check. If an employee has not objected (in writing), then you may pay them via direct deposit.

If an employee agrees in writing, you can pay them via payroll card.

Payment Upon Separation

If you discharge an employee for any reason, you must pay them within 24 hours of their demand for payment. If the employee was responsible for the collection, disbursement, or handling of money, then you can take 10 calendar days to audit their accounts before paying them.

If the employee quits or resigns voluntarily, you must pay your employees by the next regularly scheduled payday. If the regularly scheduled payday is less than five (5) days from the time the employee quits, then you can pay them on the second regularly scheduled payday or within 20 days, whichever is sooner. If the employee was responsible for the collection, disbursement, or handling of money, then you can take 10 calendar days to audit their accounts before paying them.

If a transitory employee leaves the company for any reason, you must pay them within 24 hours.

Deductions

You cannot make the following deductions from an employee’s paycheck (unless the employee has voluntarily consented after the event occurred or the employee has been held liable in court for the loss):

• cash shortages,
• lost or stolen property,
• damage to property, or
• any other claimed indebtedness.

If the employee consents, then you may make the following deductions from their paycheck:

• union dues;
• premiums on life insurance;
• hospitalization and surgical insurance;
• group accident and health insurance;
• group term life insurance;
• group annuities or contributions to credit unions or a community chest fund, local arts council, local science council, Minnesota benefit association, or a federal or state registered political action committee; or
• participation in any employee stock purchase plan or savings plan for periods longer than 60 days.

Uniforms & Other Required Equipment or Tools

You can deduct uniforms or necessary equipment from an employee’s paycheck. This includes:

• purchased or rented uniform required by you, the nature of employment, or by statute, is notgenerally appropriate for use outside of work, and does not exceed $50;
• purchased or rented equipment that may be used outside of work and does not exceed $50;
• consumable, required supplies; and
• travel expenses, except expenses incurred by traveling to and from the employee’s home to work.

You must reimburse the employee for any of the above items when the employee leaves your company. You may require the employee to return the uniform, equipment, or other necessary items.

Pre-Hire Medical, Physical, & Drug Tests

You cannot require an employee to pay for the cost of any pre-hire exams, except for:

• certificates of attending physicians related to the administration of an employee’s pension and/or disability plan; or
• citizenship papers or birth records.

Notice of Wage Reduction

There are no laws dictating whether you have to notify an employee about the wage reduction.

Paystubs

With each paycheck, you must provide a paystub in writing or electronically. The paystub must include the following:

• name of the employee,
• hourly rate of pay,
• total hours worked,
• total gross pay,
• a list of deductions,
• net pay,
• the pay period ending date, and
• the employer’s legal name and operating name.

If you provide your employees with an electronic paystub, you must also allow them access to a company-owned computer during regular working hours to view and print the paystub.

Recordkeeping

For each employee, you must keep the following records for at least three (3) years:

• name, address, social security number, and occupation;
• rate of pay, deductions, and the amount paid each pay period;
• beginning and ending hours worked each day;
• total hours worked each day and workweek;
• a record of free meals accepted;
• proof of minor’s age (birth certificate, driver’s license, or school-issued age certificate); and
• Form I-9.

If you hire any migrant workers, you must keep the following records for at least three (3) years:

• name,
• daily hours worked,
• rate of pay, and
• wages paid each pay period.

Notices

Minnesota does not require you to post payroll-related notices.