labor lawAdivision of labor law center

Although the federal minimum wage is now $7.25, the Minnesota minimum wage remains at $6.15 per hour.

On July 24, 2009, the federal minimum wage increased by 70 cents from $6.55 per hour to $7.25 per hour. This increase was the third and final increase in the federal minimum wage as set forth by the Fair Minimum Wage Act of 2007.

Employers in Minnesota and throughout the U.S. must take this opportunity to update their labor law posters, both state and federal. They are legally required to display the most recent labor law posters, and in a spot easily accessible to all employees.

The Fair Labor Standards Act of 1938 (FLSA) is the law which governs the federal minimum wage. FLSA applies to all businesses that earn $500,000 or more per years. Companies who conduct business out of state are also covered by FLSA.

FLSA law applies to individuals engaged in interstate commerce, too, even if the business does not. For example a receptionist who answers out-of-state calls or mails packages outside of the state, qualifies under FLSA and would be paid the federal minimum.

In Minnesota, if an employee is not covered under the federal minimum wage law, companies are legally allowed to pay that employee $6.15 per hour. This is legal, because (more…)

Employers nationwide may have to grant workers additional breaks to Muslim employees for prayer, after a recent court ruling.

The EEOC recently announced that Judge Jeanne J.Graham of the U.S. District Court in St. Paul, Minnesota ordered final approval of two consent decrees in religious discrimination suits.

One suit involved a Minnesota chicken processor, Gold’n Plump Poultry, Inc. According to the company website, Gold’n Plump was founded in 1926 by E.M. Helgeson. “Today, the company is run by his grandson and a family that includes about 1,500 people and more than 250 family farmers in Minnesota and Wisconsin—all who share the founder’s passion for quality.”

The other suit involved an employment agency that supplied workers for Gold’n Plump, The Work Connection.

Under the decree approved in the Gold’n Plump case, the employer will have to provide an additional paid break during the second half of each shift to accommodate the religious beliefs of Muslim employees who wish to pray during the workday. The exact timing of the break will vary during the year to coordinate with the timing for Muslim prayers. The new break time will apply to all employees (more…)

Employers may need to implement new payroll procedures due to a recent 8^th U.S. Circuit Court of Appeals ruling on overtime.

In a Nebraska lawsuit against Famous Dave’s restaurant chain, the appeal court upheld the lower court ruling that the employer should have known that employees were working a more than one Famous Dave’s location.

The restaurant chain is based in Minnesota and has both franchise and company-owened locations throughout the Midwest.

The court found that most Omaha restaurants had policies prohibiting employees from working at more than one location. When an employee had permission to work at several locations, the employer had a system in place to combine the employees hours to calculate overtime.

However, Famous Dave’s  had no policy prohibiting employees from working at more than one location. A number of employees did work at two or more locations. Their hours were not combined to calculate overtime, (more…)

Under a Minnesota law taking effect on January 1, 2009, employers must pay benefits for any workers who do not have a certificate showing they are an independent contractor.

The Minnesota Independent Contractor Exemption Certificate (ICEC) law requires individuals who work as independent contractors in the construction industry, to obtain a certificate from the Minnesota Department of Labor and Industry. The law does not apply to individuals doing business as corporations, LLCs or partnerships.

Contractors who employ individuals who do not have an ICEC must pay state workers’ compensation and unemployment insurance for those individuals. In addition, such workers are considered employees legally and all state and federal employment laws, including minimum wage, overtime and worker safety standards, apply.

The law was designed to (more…)

The July 24, 2008 federal minimum wage increase affects employers in a number of states. Under the Fair Minimum Wage Act of 2007, the federal minimum wage increased by 70 cents from $5.85 to $6.55 per hour.

This increase affects most employers in states where the state minimum wage is lower than the new federal rate. Under federal law, when an employee is covered by both state and federal law, the employee is entitled to coverage under whichever law provides the greater benefit.

This means that if (more…)