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Issuing a final paycheck to an employee
Minnesota Department of Labor and Industry sent this bulletin at 02/26/2021 01:15 PM CST
Wage and Hour Bulletin
February 2021
Employers: Avoid making wage and hour violations
Payment due: Employees who quit or voluntarily leave employment are due all wages and commissions on the next regularly scheduled payday. If the payday is fewer than five days from the last day of work, the employer has up to 20 days to make final payment.
Payment due: Employees terminated, laid-off, discharged or fired are due all wages within 24 hours of a written demand for payment.
Exception: If an employee collected, disbursed or handled money or property, the employer has 10 days after termination to audit and adjust accounts before paying all final wages. Property includes items such as cell phones, computers and vehicles.
Pay rate: Employees must receive their regular rate of pay.
Deductions: Unless a written agreement or court order exists, previous paycheck deductions for uniforms, consumables and travel expenses must be repaid to the employee with the final paycheck. Employers can pursue claims of employee theft or property damage through conciliation court, but not by wage deduction, without voluntary written authorization from the employee
Payment method: Employees can specify how they wish to receive payment for their final wages and commissions. If they do not specify otherwise, use the regular method of payment.
Penalties: If the employer is late in paying an employee's wages, it may be liable to pay a penalty of the employee's average daily earnings, one for each day they are late in paying.
Wage claim process: employees may file a wage claim with Labor Standards to resolve cases of unpaid wages.
Final wages video
DLI has created a video for employees and employers about final pay laws. View it here.
Resources
Visit DLI's Employment Practices webpage at for information about final pay regulations, child labor, minimum wage, nursing mother accommodations, overtime, parental leave, payroll recordkeeping and tip regulations, plus other important labor standards issues.
View or print a fact sheet in English or Spanish about final pay laws and the wage claim process.
Questions?
Labor Standards serves the citizens of Minnesota by providing information about the state's wage, hour and employment laws.