Bill defines wage theft as a crime, targets labor trafficking, and creates “wage theft free” workplaces

Legislation chief-authored by Senator Eric Pratt (R-Prior Lake) to combat wage theft passed the Senate Committee on Jobs and Economic Growth.  The bill creates a definition of wage theft in Minnesota state law as “the failure to pay an employee all wages to which that employee is entitled with an intent to defraud.” Currently, wage theft is not a definable crime in Minnesota.

“Everyone agrees, employees should be paid what they earn,” said Senator Pratt, Chair of the Senate Committee on Jobs and Economic Growth. “By clearly defining wage theft in state law, we ensure employees can seek remedies for unpaid wages and use the help of law enforcement while doing so.”

The bill also provides an opportunity for employers to voluntarily receive certification from the Minnesota Department of Labor and Industry (DLI) as a “wage theft free” workplace. To be eligible, businesses must apply to be in the program and provide information to employees regarding wage and hour requirements, offer training to employees on how to recognize labor trafficking, and allow reasonable inspection and submission of records. They must also be free of wage theft violations in the preceding three years. Further, the legislation funds organizations to identify and serve victims of labor trafficking.

“This bill aims to strike a balance between the employer and the employee,” added Senator Pratt. “It not only provides employees a clear and defined process to recoup lost wages, but it allows employers to be proactive in combating wage theft and avoiding punishment for unintended actions. By working together with the labor and business communities, we have crafted legislation that ensures fairness for companies and workers alike.”