Payroll Practices and Compensation Policy (MN)

Payroll Practices and Compensation Policy (MN)
Practical Law Standard Document w-000-6787
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Jurisdiction: United States (Minnesota)
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Payroll Practices and Compensation Policy (MN), Practical Law Standard Document...
Payroll Practices and Compensation Policy (MN)

by Practical Law Labor & Employment
Law stated as of 21 Dec 2023 • Minnesota
An employee payroll practices and compensation policy under Minnesota law and the
Fair Labor Standards Act (FLSA). This Standard Document addresses payroll practices,
payroll deductions, overtime compensation, meal and rest breaks, timekeeping, and
employee complaint procedures. It can be incorporated into an employee handbook or
used as a stand-alone policy document. This Standard Document is intended for private
sector employers. It is based on Minnesota and federal law. Local laws may impose
additional or different requirements but this document will be useful and relevant to
employers throughout the state. This Standard Document has integrated notes with
important explanations and drafting tips.
Drafting Note: Read This Before Using Document
The Fair Labor Standards Act
Employers can reduce their risk of wage and hour claims by implementing a policy that addresses
key employer and employee responsibilities under the federal Fair Labor Standards Act (FLSA) and
Minnesota law and sets employee expectations. This Standard Document, which can be incorporated
into an employee handbook or used as a stand-alone policy document, addresses these issues by:
• Explaining employee classifications, including exempt status under the FLSA.
• Defining the workweek and the employer’s business hours.
• Setting a payroll schedule.
• Identifying mandatory and permissible payroll deductions.
• Informing employees of how and when they will be paid their wages and when they are entitled
© 2024 Thomson Reuters. No claim to original U.S. Government Works. 2

to overtime pay.
• Setting procedures for:
• timekeeping;
• meal and rest breaks; and
• employee complaints.
For more information on the FLSA generally, see Practice Note, Wage and Hour Law: Overview.
Minnesota Law
Various sections of the Minnesota law govern employers’ wage and hour obligations to employees,
including:
• The Minnesota Fair Labor Standards Act (MFLSA) (Minn. Stat. Ann. §§ 177.21 to 177.35). The
MFLSA establishes state standards for both minimum wage and overtime (Minn. Stat. Ann. §§
177.24 and 177.25).
• Minnesota Statutes Chapter 181, which subjects employers to wage requirements concerning:
• how and when wages are to be paid;
• the hours of nurses;
• wages to surviving spouses;
• wage discrimination based on sex; and
• wage deductions.
(Minn. Stat. Ann. §§ 181.01 to 181.16, 181.171, 181.275, 181.58, 181.66 to 181.68, 181.70 to
181.71, and 181.79.)
For more information on Minnesota wage and hour laws, see State Q&A, Wage and Hour Laws:
Minnesota: Question 1.

Local law may impose additional or different employer requirements and should be reviewed with this
Standard Document. In particular, employers with employees working in St. Paul, Minneapolis, and
Duluth should review the ordinances governing sick and safe time accrual and timekeeping. (See St.
Paul Code of Ordinances, Chapter 233, §§ 233.01 to 233.21; Minneapolis Code of Ordinances,
Chapter 40, §§ 40.10 to 40.310; and Duluth City Code, Ch. 29E; see also Standard Document, Paid
Time Off/Vacation Policy (MN): Drafting Note: Local Laws and Practice Note, Paid Sick Leave State
and Local Laws Chart: Overview: Minnesota Laws (Local Only).)
Specific Industries and Unionized Workforces
Employers in certain industries, such as hospitality and manufacturing, or that employ a unionized
workforce, should also consider adopting policies discussing:
• Report-in and call-back pay.
• Shift differentials.
• Meal, lodging, and tip credits.
• Tip pooling.
• Incentive compensation and non-discretionary bonuses.
• Commissions.
• Use of electronic communications away from work.
Pre-Employment Compensation Issues
This Standard Document is intended for employers to use when developing or revising payroll
practices and compensation policies applicable to current employees. However, employers must also
ensure that they comply with federal, Minnesota, and local pre-employment requirements and
restrictions.
For example, unlike Minnesota, several state and local laws restrict employer inquiries into an
applicant’s salary history during the hiring process. For more information on state and local salary
history bans, including a sample salary history inquiry policy, see:
• Practice Note, State and Local Salary History Bans.
• Salary History Information: Best Practices Checklist.
• Practice Note, State and Local Salary History Laws Chart: Overview.
• Standard Document, Salary History Inquiry Policy.

Compliance with the National Labor Relations Act
Both unionized and nonunionized employers must ensure that they comply with the National Labor
Relations Act (NLRA) when developing and implementing workplace policies. For information about
compliance with the NLRA, see Practice Note, Employee Handbooks: Best Practices: Compliance
with the National Labor Relations Act.
Bracketed Text
Counsel should replace bracketed text in ALL CAPS with information specific to the particular
circumstances. Bracketed text in sentence case is optional or alternative language that counsel
should include, modify, or delete, as appropriate. A forward slash in bracketed text indicates that
counsel should choose from among two or more alternative words or phrases.
END DRAFTING NOTE
PAYROLL PRACTICES AND COMPENSATION POLICY (MN)

Administration of This Policy
The [Human Resources Department/[DEPARTMENT]] is responsible for the administration of this Policy. If
you have any questions about this Policy, please contact the [Human Resources
Department/[DEPARTMENT]].
[[EMPLOYER] expressly reserves the right to change, modify, or delete the provisions of this Payroll
Practices and Compensation Policy without notice.]
Employee Classifications
[EMPLOYER] designates each employee as either exempt or nonexempt in compliance with applicable
federal, state, and local law.
Exempt Employees. Employees designated as exempt are paid a fixed salary and are not entitled to
[minimum wage or] overtime pay. [Specific rules apply to exempt employee salary deductions. For more
information, please see the Payroll Deductions section of this Policy.]
Nonexempt Employees. Employees designated as nonexempt are entitled to overtime pay at a rate of
[1.5/[OTHER NUMBER]] times their regular rate of pay for all hours worked over [40/48 in a workweek/8 in a
workday/[OTHER APPLICABLE THRESHOLD]], as required by applicable federal, state, and local law.
[EMPLOYER] also assigns each employee to one of the following categories:
Regular Full-Time Employees. Regular full-time employees are normally scheduled to work at least
[40/48/OTHER NUMBER] hours per workweek, except for approved time off.
Regular Part-Time Employees. Regular part-time employees are normally scheduled to work [NUMBER]
hours or less per workweek. [Part-time employees are not eligible for most [EMPLOYER] benefits.]
Temporary Employees. Temporary employees are generally hired on a temporary or project-specific basis,

with either full- or part-time hours. [Temporary employees are not eligible for most [EMPLOYER] benefits.]
Drafting Note: Employee Classifications
To help employees understand which policies apply to them, employers typically identify and provide
a brief description of the employee classifications they use. Employers may also use the
classifications to apply other workplace policies. For example, regular full-time employees are
commonly eligible for more vacation and other benefits than regular part-time employees.
Employee classifications typically identify which employees are:
• Exempt or nonexempt under the FLSA and MFLSA. For more information on how to properly
classify employees as exempt or nonexempt under the FLSA, see Practice Note, Wage and
Hour Law: Overview: Minimum Wage and Overtime Pay Exemptions and Standard Document,
Questionnaire To Evaluate Exempt Status Under the FLSA. For rules under the MFLSA, see
State Q&A, Wage and Hour Laws: Minnesota: Question 2 and Standard Document,
Questionnaire to Evaluate Exempt Status Under Minnesota Law.
• Full-time or part-time. An employer should customize these classifications by, for example,
modifying them to correspond with employee benefit plans that define full-time and part-time
employees or designate how many hours employees must work to be eligible for benefits.
• Temporary employees.
Employers should customize the classification descriptions to comply with applicable:
• Local law, which may impose different or additional requirements on exemptions from
minimum wage and overtime pay.
• Collective bargaining agreements (CBAs) that:
• require overtime pay in addition to what is required by the FLSA and applicable
Minnesota law; or
• establish additional or different employee classifications.
• Employer policies and practices that are more generous than the FLSA and Minnesota law. For
example, some employers choose to pay overtime:
• for hours worked over eight in a workday; or
• at a rate of two times the employee’s regular rate of pay for overtime hours worked on
weekends or holidays.

END DRAFTING NOTE
Workweek and Business Hours
[EMPLOYER]’s workweek begins on [DAY AND TIME] and ends on [DAY AND TIME], and our normal
business hours are from [TIME] to [TIME], [DAY] to [DAY].
[Full-time employees are expected to work [eight/[NUMBER]] hours each workday, [five/[NUMBER]] days
each workweek[, exclusive of [meal/lunch] breaks and rest periods].] [Employees may be required to come
in early, work late, or work overtime hours from time to time, depending on various factors, such as
workloads, staffing needs, and special projects.]
[Employees will receive their specific work schedule from their manager or supervisor. If you have any
questions about your work schedule, you should speak with your manager or supervisor to avoid any
misunderstanding.]
[[Nonexempt] [E/e]mployees are required to record all hours worked, including any hours worked outside of
their normal schedule. For more information, please see the Timekeeping section of this Policy.]
[Nonexempt employees must have permission from their supervisor before working overtime. For more
information, please see the Overtime section of this Policy.]
Drafting Note: Workweek and Business Hours
The FLSA provides that overtime pay is determined on a workweek basis and requires employers to
establish a fixed workweek for that purpose. The workweek need not coincide with the calendar week
and different workweeks can apply to different employees. (29 C.F.R. §§ 516.2(a)(5) and 778.105.)
Employers covered by the MFLSA but not the FLSA must pay nonexempt employees overtime for
any hours worked over 48 in a workweek (Minn. Stat. Ann. § 177.25). Employers should identify the
workweek in a written policy so they can:
• Determine when nonexempt employees work more than 40 or 48 hours in a particular

workweek.
• Properly calculate overtime pay for that workweek.
One workweek generally consists of any seven consecutive 24-hour periods, such as 12:00 a.m. on
Sunday through 11:59 p.m. on Saturday. Neither Minnesota law nor the FLSA requires a workweek
to start on any particular day or hour.
In Minnesota, once a workweek is set, it remains fixed unless the employer makes a permanent
change in the workweek. If the employer has not designated a workweek, the workweek is the
calendar week. (Minn. R. 5200.0170 subpt. 1.)

For more information on Minnesota law, see State Q&A, Wage and Hour Laws: Minnesota: Question
3.
Employers that pay overtime based on hours worked in a single workday should expressly define the
workday for that purpose, such as, for example, “For purposes of determining when daily overtime
pay is due, a workday is the consecutive 24-hour period beginning at 12:00 a.m. and ending at 11:59
p.m. each calendar day.”
For information on the FLSA’s definition of “workday” for compensable time purposes, see Practice
Note, Compensable Time Under the FLSA: Overview: Defining the Workday and Workweek .
Employers can also customize the optional language presented here to establish that employees:
• Are subject to a specific schedule.
• May be expected to work outside their normal schedule, including overtime hours.
• Must comply with timekeeping requirements.
• Must have permission before working overtime hours.
END DRAFTING NOTE
Payday
Employees are paid [weekly/every other week/twice per month/monthly] on [DAY OF THE WEEK OR
MONTH] for the pay period that ends on the previous [END OF PAY PERIOD]. If a particular payday falls on
a weekend or holiday, employees normally will be paid on the last business day before the weekend or
holiday.
[Employees enrolled in [direct deposit/a payroll card program] will have their pay deposited in their
designated account on payday. For all other employees,] [[P/p]ay checks will be mailed to the employee’s
home address on file with the [DEPARTMENT]/[P/p]ay checks will be delivered to employees by a
[DEPARTMENT] representative/[E/e]mployees may pick up their check from the [DEPARTMENT] on
payday].
If you do not receive your [[direct deposit/payroll card account deposit] or] pay check, notify the
[DEPARTMENT] immediately.
Employees should review their pay checks and the [attached/corresponding] [wage statements/paystubs] for
errors. If you find a possible error, report it to the [DEPARTMENT] immediately. [EMPLOYER] will correct
any errors, including any under or overpayment, as soon as possible. For information on how to report
errors, please see the Employee Complaint Procedure section of this Policy.

Drafting Note: Payday
Pay Frequency
The FLSA requires that minimum wage and overtime pay earned in a particular workweek be paid on
the regular payday for the pay period in which that workweek ends. The FLSA does not require that
employees be paid weekly or on a particular day of the month. For more information on the timing of
wage payment under the FLSA, see Practice Note, Wage and Hour Law: Overview: Timing and
Method of Payment.
Minnesota employers generally must pay employees on regular, designated paydays:
• At least once every 31 days for all wages, including salary, earnings, and gratuities.
• At least once every three months for commissions.
(Minn. Stat. Ann. § 181.101(a).)
Minnesota employers must pay employees every 15 days if they perform labor or service on any
transitory projects, including:
• Construction, paving, repair or maintenance of roads, highways, sewers, or ditches.
• Clearing land.
• Production of forest products.
• Transitory work that requires the employee to change the employee’s place of residence.
(Minn. Stat. Ann. § 181.10.)
Employers must pay employees overtime compensation by the payday immediately following the
regular payday for the pay period in which the employee earned the overtime (Minn. R. 5200.0150).
Employers should establish specific paydays in their payroll practices and compensation policy to
comply with applicable law and give employees notice of the pay schedule. For example, many
employers pay employees:
• Every Friday.
• Every other Friday.
• On the 15th and last day of each month.
Wage Payment Method
The FLSA requires employers to pay minimum wage and overtime compensation using one of the

following methods:
• Cash.
• ”Negotiable instrument payable at par” (checks satisfy this requirement).
• Under certain circumstances, by crediting:
• the reasonable cost or fair value of board, lodging, or other facilities; or
• tips.
(29 U.S.C. §§ 206, 207; 29 C.F.R. § 531.27; see also Practice Note, Wage and Hour Law: Overview:
Timing and Method of Payment.)
The FLSA does not expressly permit wage payment by direct deposit or payroll card (but see Wage
and Hour Division (WHD) Field Operations Handbook (FOH) § 30c00(b)). For more information on
paying employee wages by payroll card, see Practice Note, Paying Employee Wages with Payroll
Cards and Payroll Card Programs: Employer Best Practices Checklist.
Wages in Minnesota are payable in:
• Legal tender of the United States.
• Checks on banks convertible into cash on demand at full face value.
• Direct deposit unless employee objects in writing.
• Electronic fund transfer to a payroll card account, meeting certain requirements (see Minn.
Stat. Ann. §177.255).
(Minn. Stat. Ann. §177.23, subd. 4.)
Minnesota law prohibits employers from paying wages with nonnegotiable instruments, such as a
promissory note or “IOU” (Minn. Stat. Ann. § 181.02). For information on Minnesota wage payment
methods, see State Q&A, Wage and Hour Laws: Minnesota: Question 7. For information on wage
payment by direct deposit and payroll cards under state law, see Practice Note, State Direct Deposit
and Payroll Card Laws Chart: Overview.
Payment Following Termination
For employees who are involuntarily discharged, employers must pay all earned but unpaid wages
and commissions within 24 hours of a demand by the employee (Minn. Stat. Ann. § 181.13(a)).
If an employee voluntarily resigns, employers must pay all earned wages and commissions by the

first regularly scheduled payday after the employee’s last day of employment, except:
• If a collective bargaining agreement provides otherwise.
• If the first regularly scheduled payday is less than five calendar days after the employee’s last
day of employment, the employer may wait until the second regularly scheduled payday to pay
all earned wages and commissions, if it is not more than 20 calendar days after the last day of
employment.
• Employers must pay migrant workers their wages or commissions within three days after
termination or within five days after resignation.
• Employers generally must pay transitory workers within 24 hours of separation from
employment.
(Minn. Stat. Ann. §§ 181.11, 181.14, 181.85, and 181.87; see State Q&A, Wage and Hour Laws:
Minnesota: Question 7.)
END DRAFTING NOTE
Payroll Deductions
[EMPLOYER] is required by law to make certain deductions from your pay each pay period, including
deductions for:
• Federal and state income taxes.
• Social Security (FICA) taxes.
• [STATE DISABILITY INSURANCE TAXES.]
• Deductions required by wage garnishment, child support, and other income withholding orders or
notices.
• [Deductions required by collective bargaining agreements, such as union dues.]
• [OTHER REQUIRED DEDUCTIONS].
[EMPLOYER] may also make other deductions from your pay, including deductions for:
• Wages you have authorized, such as your employee contribution to [health/dental/life/[TYPE OF

INSURANCE]] insurance premiums and your voluntary contributions to [a 401(k)/retirement plan/a
pension plan,] [a charitable giving campaign,] [transit or parking benefits,] and [OTHER VOLUNTARY
DEDUCTIONS].

• [Repayment of wage advances and loans.]
• [OTHER PERMISSIBLE DEDUCTIONS].
[Nonexempt Employees
Other deductions from a nonexempt employee’s pay may be permitted under federal or applicable state or
local law, including deductions for:
• [Cost and maintenance of uniforms.]
• [OTHER PERMISSIBLE DEDUCTIONS].
[EMPLOYER] prohibits deductions from a nonexempt employee’s pay except as required or permitted by
applicable law. If deductions reduce a nonexempt employee’s wages significantly, [EMPLOYER] will ensure
that applicable minimum wage and overtime pay requirements are satisfied.]
[Exempt Employees
Unless prohibited by applicable state [or local] law, other permissible deductions from an exempt employee’s
salary include deductions for:
• Full-day absences for personal reasons other than sickness or disability, including vacation.
• [Full-day absences for sickness or disability, pursuant to [EMPLOYER]’s [HEALTH AND WELFARE
BENEFIT POLICY OR PLAN].]
• Full-day or partial-day absences taken as unpaid leave under the Family and Medical Leave Act
(FMLA) [see [EMPLOYER]’s [FMLA LEAVE POLICY]].
• Amounts employees receive as jury duty or witness fees or military pay, as an offset to the employee’s
salary.
• Unpaid full-day disciplinary suspensions imposed in good faith for workplace conduct rule infractions
[see [EMPLOYER]’s [WORKPLACE CONDUCT POLICY]].
• Penalties imposed in good faith for infractions of safety rules of major significance [see
[EMPLOYER]’s [SAFETY POLICY]].
• A proportionate amount of the employee’s full salary for time not worked in the employee’s first or last
week of employment.
[In any workweek in which an exempt employee performs any work, [EMPLOYER] will not reduce the
employee’s salary because of:
• Partial-day absences for personal reasons, sickness, vacation, or disability (unless the leave is
covered by the FMLA).
• Absence because the employee’s worksite is closed on a scheduled workday.

• Absences for jury duty, witness attendance, or military leave, except that [EMPLOYER] may offset
against the employee’s salary any jury duty or witness fees or military pay the employee receives for
those services.
• Any other deductions prohibited by applicable federal or state law.]
[EMPLOYER] prohibits deductions from an exempt salaried employee’s pay except as required or permitted
by applicable law.]
All Employees
[EMPLOYER] prohibits deductions from your pay except as required or permitted by applicable law.
All deductions from your pay will be identified on your [pay stub/wage statement]. You should carefully
review your [pay stub/wage statement] each pay period. If you have questions about any deductions or if
you believe an improper deduction has been made, you [must/should] immediately report your concerns to
your manager or the [DEPARTMENT]. [EMPLOYER] will promptly investigate all complaints concerning an
employee’s pay. If [EMPLOYER] has made an improper deduction from your pay, it will reimburse you as
soon as practicable. For more information on how to report concerns about your pay, please see the
Employee Complaint Procedure section of this Policy.
Drafting Note: Payroll Deductions
Under the FLSA’s salary basis test and some state law equivalents, if an employer makes improper
deductions from an exempt employee’s salary, the employer may lose the exemption. The FLSA
expressly provides for two defenses against losing the exemption under certain circumstances. A
clearly communicated policy prohibiting improper deductions helps employers benefit from:
• The window of correction defense, which preserves the exemption for employers that
reimburse employees for improper deductions that are isolated or inadvertent (29 C.F.R. §
541.603(c); see also Standard Clause, FLSA Salary Basis Safe Harbor Provision: Drafting
Note: The Window of Correction Defense).
• The safe harbor defense, which preserves the exemption for employers that:
• have a clearly communicated policy prohibiting improper deductions, including a

complaint mechanism;
• reimburse employees when they make improper deductions;
• make a good faith commitment to comply in the future; and
• do not willfully violate the policy by continuing to make improper deductions after
receiving employee complaints.

• (29 C.F.R. § 541.603(d); see also Standard Clause, FLSA Salary Basis Safe Harbor Provision
and Standard Document, Questionnaire to Evaluate Exempt Status Under the FLSA: Drafting
Note: Salary Basis Test.)
Thus, while generally not required under the FLSA, best practice is for employers to describe
mandatory and permissible payroll deductions in their payroll practices and compensation policy to:
• Preserve the exemption under the FLSA’s window of correction and safe harbor defenses (see
Drafting Note, Employee Complaint Procedure).
• Establish employee expectations about payroll deductions.
• Assist employees in identifying improper deductions and reporting those deductions to the
employer for prompt resolution.
Employers also should provide pay stub detailing payroll deductions. Although the FLSA does not
require employers to give pay stubs to employees, Minnesota law requires that employers provide
detailed earnings statements that show:
• The name of the employee.
• The employee’s rate or rates of pay and basis thereof, including whether the employee is paid
by hour, shift, day, week, salary, piece, commission, or other method.
• Allowances, if any, claimed pursuant to permitted meals and lodging.
• The total number of hours the employee worked unless the employee is otherwise exempt.
• The total amount of gross pay the employee earned during that period.
• The deductions the employer made from the employee’s pay.
• The net amount of pay after all deductions are made.
• The date on which the pay period ends.
• The employer’s legal name and operating name if it is different from the employer’s legal name.
• The physical address of the employer’s main office or principal place of business, and a mailing
address, if different.
• The telephone number of the employer.

(Minn. Stat. Ann. § 181.032(b).)
If an employee requests a written earnings statement, as opposed to an electronic statement,

Minnesota law requires the employer to provide one (Minn. Stat. Ann. § 181.032(c)). For more
information, see Practice Note, State Wage Statement Laws Chart: Overview.
Employers should customize this policy to correspond with their specific practices and ensure that
their payroll deductions comply with applicable federal and Minnesota law. For example:
• Under the FLSA, different rules apply to wage deductions for nonexempt employees and salary
deductions for exempt employees (see Practice Note, Wage and Hour Law: Overview: Wage
Deductions).
• The Consumer Credit Protection Act limits how much of an employee’s wages may be
garnished in a given workweek or pay period (15 U.S.C. § 1671 and 29 C.F.R. §§ 870.1-
870.57; see also Practice Note, Wage Garnishment Under the Consumer Credit Protection Act
(CCPA)). Minnesota law also limits the amount of wages that may be garnished (see Practice
Note, State Wage Garnishment Laws Chart: Overview).
• Minnesota law allows employers to make certain specific deductions from employees’ wages
when:
• the employee authorizes the deduction in writing; and
• the deduction is for the employee’s benefit.
• (Minn. Stat. Ann. § 181.06.)
• Minnesota law prohibits employer deductions from wages without a court order or authorization
by the employee for:
• lost or stolen property;
• damage to property; or
• any other indebtedness to the employer.
• (Minn. Stat. Ann. § 181.79, subd. 1(a).)
For more information on payroll deduction requirements under Minnesota law, see State Q&A, Wage
and Hour Laws: Minnesota: Question 9.

END DRAFTING NOTE
Timekeeping
To ensure that [EMPLOYER] has complete and accurate time records and that employees are paid for all
hours worked, nonexempt employees are required to record all working time. Employees must record their
time using [a/an] [EMPLOYER] [time card/time sheet/punch clock/[TIMEKEEPING
APPLICATION]/[OTHER]]. Employees should record on a daily basis all actual time worked, including the
starting and stopping times of each workday, and all time away from work, including the starting and
stopping times of unpaid [meal/lunch] periods [and sick leave, vacation days, and company holidays]. Your
supervisor will review your time entries and ask you to verify them at the end of each [day/week/pay period].
[Employees must [make/report] corrections to their time entries [immediately/as soon as possible] using
[EMPLOYER]’s [Time Entry Correction Form/[OTHER METHOD].]
Exempt employees are [also required to record all working time by [TIMEKEEPING METHOD]/not required
to record working time].
Falsifying time entries, including by working “off the clock,” is strictly prohibited. If you falsify your time
entries or work off the clock, you will be subject to discipline, up to and including termination.
You [should/must] immediately report to the [DEPARTMENT] any supervisor or manager who falsifies your
time entries or encourages or requires you to falsify your time entries or work off the clock. For information
on how to report a supervisor or manager, please see the Employee Complaint Procedure section of this
Policy.
Drafting Note: Timekeeping
To ensure that employers have complete and accurate time records and pay nonexempt employees
for all hours worked, including any unauthorized working time, employers should include a
timekeeping policy in their payroll practices and compensation policy. This policy should:
• Require employees to:
• keep accurate time records and make or report any necessary corrections; and
• verify the accuracy of their time records on a regular basis, such as each pay period.
• Require managers or supervisors to review and verify the time records of their direct reports on
a regular basis, such as weekly or each pay period.
• Prohibit falsifying time entries, including by working off the clock.

The timekeeping policy should inform employees that falsification of time records, including working
off the clock, is subject to discipline, up to and including termination. This Standard Document also
includes sample language informing employees of their obligation to report any supervisor or
manager who violates the policy.
Tracking Exempt Employee Time
With few exceptions, employers generally cannot pay exempt employees, or make deductions from
an exempt employee’s pay, based on the employee’s hours of work. For example, exempt
employees typically are not paid by the hour or subject to salary deductions if they arrive late to work.
(29 C.F.R. §§ 541.600, 541.602, and 541.603; see also DOL Fact Sheet #17G: Salary Basis
Requirement and the Part 541 Exemptions Under the FLSA.)
However, employers can, without affecting their exempt status, require exempt employees to:
• Adhere to a particular schedule.
• Track and record their hours of work.
(See, for example, Sander v. Light Action, Inc ., 2012 WL 985576, at *6 (D. Del. Mar. 21, 2012) , aff’d,
525 Fed. Appx. 147 (3d Cir. 2013) (citing cases) and Guerrero v. J.W. Hutton, Inc ., 458 F.3d 830,
836 (8th Cir. 2006); DOL Opinion Letter FLSA2004-4NA; 69 Fed. Reg. 22178.)
END DRAFTING NOTE
[[Meal/Lunch] and Rest Periods
[Nonexempt/All] employees [who work more than [NUMBER] hours in a workday] must take a
[30-minute/one-hour/[OTHER]] [meal/lunch] break [at [SPECIFY TIME]/as scheduled by their supervisor].
Employees [may take a 15-minute break period for every four hours worked/[who work more than
[NUMBER] hours in a workday] must take a [NUMBER]-minute break period for [each/every] [DURATION
OF TIME] worked].
[Meal/Lunch] breaks [and rest periods] are intended to provide [nonexempt] employees an opportunity away
from work. [Nonexempt] [E/e]mployees are not permitted to perform any work during [meal/lunch] breaks [or
rest periods]. Employees [must/are encouraged to] take [meal/lunch] breaks [and rest periods] away from
their work area. [Employees may use the [cafeteria/lunch room/break room/[LOCATION]] to take their
[meal/lunch] breaks [and rest periods]. Employees may [not] leave [EMPLOYER]’s premises during
[meal/lunch] breaks [or rest periods].]
[Nonexempt/All] employees must [record the starting and stopping times of [meal/lunch] breaks on their time
sheet/clock in and out for their [meal/lunch] breaks]. [Uninterrupted] [[M/m]eal/[L/l]unch] breaks do not count
as hours worked [for nonexempt employees] and are unpaid. [Nonexempt] [E/e]mployees [must also/are not
required to] record the starting and stopping times of rest periods. [Rest periods of less than 20 minutes are
counted as working time and [nonexempt] employees must be paid for those periods.]
[Supervisors and managers are prohibited from requiring or encouraging [nonexempt] employees to perform
work during unpaid [meal/lunch] [or rest] breaks. [Nonexempt] [E/e]mployees [should/must] immediately

report to the [DEPARTMENT] any supervisor or manager who encourages or requires [nonexempt]
employees to perform work during unpaid [meal/lunch] [or rest] breaks. For information on how to report a
supervisor or manager, please see the Employee Complaint Procedure section of this Policy.]
Any [nonexempt] employee who performs work during their [meal/lunch] break must [punch back in before
performing the work/correct their time entries to record the time spent working during their [meal/lunch]
break [using [EMPLOYER]’s [Time Entry Correction Form/[OTHER FORM]]]/notify their supervisor or
manager so the appropriate time-entry adjustment can be made].
[[Nonexempt] [E/e]mployees who do not take [meal/lunch] or rest breaks as scheduled, take unauthorized
[meal/lunch] or rest breaks, or take longer [meal/lunch] or rest breaks than permitted, may be subject to
discipline, up to and including termination.]]
Drafting Note: Meal and Rest Periods
Many employers provide meal and rest periods to employees, though not required by the FLSA. If an
employer provides meal and rest breaks, generally:
• Bona fide meal breaks, which typically are at least 30 minutes, are not compensable.
• Rest periods of under 20 minutes are compensable.
For more information on meal and rest breaks under the FLSA, see Practice Note, Compensable
Time Under the FLSA: Overview.
Minnesota employers must provide employees with:
• Restroom breaks for every four consecutive hours worked.
• A meal break when the employee works eight or more consecutive hours.
(Minn. Stat. Ann. §§ 177.253 and 177.254; Minn. R. 5200.0120.)
Minnesota law does not require a specific duration for meal and rest breaks, but the break must be at
least 20 minutes for it to be unpaid (Minn. R. 5200.0120).
For more information on Minnesota law, see State Q&A, Wage and Hour Laws: Minnesota: Question
5 and Practice Note, State Meal and Rest Break Laws Chart: Overview.
Employers should also customize their payroll practices and compensation policy to address:
• Break time requirements for nursing mothers under the FLSA and Minnesota law (Minn. Stat.
Ann. § 181.939; and see, for example, Practice Note, Wage and Hour Law: Overview: Break
Time for Nursing Mothers). For a sample policy under Minnesota law, see Standard Document,
Lactation Break Policy (MN).
• Breaks required for health or safety purposes, such as in hot-weather working conditions (see,
for example, Practice Note, Heat Illness Prevention in the Workplace).

• Different or additional state or local break time requirements, including for:
• meal and rest periods;
• specific industries; and
• employers of minor employees.
• Applicable CBAs.
• Employer break time policies and practices more generous than federal or applicable state or
local requirements.
END DRAFTING NOTE
Overtime
All employees may [occasionally] be required to work more than [[8/[NUMBER]] hours in a workday or]
[40/48/[NUMBER]] hours in a workweek.
Nonexempt employees will be paid overtime compensation in accordance with federal and applicable state
[and local] law at a rate of [1.5/[RATE]] times their regular rate of pay for all hours worked over
[[8/[NUMBER]] hours in any workday or] [40/48/[NUMBER]] hours in any workweek. Overtime pay is based
on hours actually worked. For example, hours attributable to paid [vacation/holiday/sick leave/time off] are
not included in calculating hours of overtime.
[Nonexempt employees must obtain approval from their supervisors in advance of working overtime. Failure
to obtain approval for working overtime [will/may] result in discipline, up to and including termination of
employment.]
[Exempt employees do not receive overtime pay and instead are paid a salary that is intended to
compensate them for all hours worked, including any hours worked over [[8/[NUMBER]] hours in any
workday or] [40/48/[NUMBER]] hours in any workweek.]
If you believe that you have not been compensated for all hours worked, including overtime pay you believe
you are owed, you [should/must] immediately report your concerns to the [DEPARTMENT]. [Supervisors
and managers are prohibited from requiring or encouraging [nonexempt] employees to underreport any
overtime hours worked. You are obligated to immediately report to the [DEPARTMENT] any supervisor or
manager who requires or encourages you to underreport your hours worked.] For more information on how
to report concerns about your pay, please see the Employee Complaint Procedure section of this Policy.

Drafting Note: Overtime
This policy addresses the general overtime pay requirements under the FLSA and MFLSA.
Employers may require exempt and nonexempt employees to work overtime, but must pay
nonexempt employees for all hours worked, including any unauthorized overtime. Employers should
customize the language provided in this Standard Document to inform employees:
• That they may be required to work overtime.
• Of any requirement that they receive permission before working overtime.
• That they must record all working time, including any overtime hours.
• That only nonexempt employees are entitled to overtime pay.
• Of their obligation to report:
• concerns about their compensation, including overtime pay; and
• any supervisor or manager who encourages or requires them to underreport overtime

hours worked.
(See also Drafting Note, Timekeeping.)
Employers that prohibit nonexempt employees from working overtime without prior approval should
ensure this policy does not cause employees to perform off-the-clock work (OTC) work.
For example, if a supervisor instructs an employee to finish a project by a specific deadline but
refuses to allow the employee to work overtime, the employee may be forced to choose between
working unauthorized overtime or not finishing the project on time. In this scenario, the employee
may choose to work overtime to finish the project but not record any overtime hours, making the
employer susceptible to a wage and hour claim for unpaid overtime compensation.
Employers can reduce this risk by:
• Adopting a timekeeping policy.
• Training supervisors and managers that nonexempt employees must:
• accurately record all hours worked, including unauthorized overtime; and
• be paid for all hours worked, including OTC work.
• Auditing timekeeping records to ensure that they accurately capture all hours worked (for more
information, see Practice Note, Conducting an Internal Wage and Hour Audit: Timekeeping ).

• Requiring employees to sign off on time records each workday or workweek and requiring
supervisors or managers to approve employee time records.
• Treating unauthorized overtime hours as a disciplinary issue, not a payroll issue.
(See also Drafting Note, Timekeeping.)
Employers should also customize this policy to:
• Comply with local law which may impose additional or different requirements.
• Comply with and refer to CBAs that impose additional overtime work or pay requirements.
• Reflect employer policies and practices that are more generous to employees than the FLSA
and MFLSA.
• Explain the employer’s policy, if any, of using the fluctuating workweek method to calculate
overtime pay under certain circumstances (for more information, see Practice Note, The
Fluctuating Workweek Method of Paying Overtime Under the FLSA).
Employers covered by the MFLSA but not the FLSA must pay nonexempt employees overtime
compensation for any hours worked over 48 in one workweek (Minn. Stat. Ann. § 177.25). Minnesota
employers should carefully examine the coverage requirements of the FLSA before concluding that
only the MFLSA 48-hour standard applies.
END DRAFTING NOTE
[Discretionary Bonuses
Employees may be eligible to receive a bonus at the complete and sole discretion of [EMPLOYER].
Specifically, [EMPLOYER] reserves complete and sole discretion to determine whether any bonuses will be
paid, and if so, to set any eligibility criteria, the amount of bonuses (if any), and the timing of bonus
payments (if any).]
Drafting Note: Discretionary Bonuses
Under the FLSA, a bonus must be included in the calculation of the regular rate of pay unless it is
discretionary, meaning both:
• The fact and amount of the payment are determined in the sole discretion of management.
• The payments are not made under any contract, agreement, or promise (whether oral or

written) causing the employee to expect the payments regularly.
(29 U.S.C. §207(e)(3); 29 C.F.R. § 778.211(c).)
The optional language above allows employers to establish employee expectations and reduce the
risk of liability for the incorrect calculation of overtime pay by expressly stating that bonuses are
discretionary under the FLSA and Minnesota law.
For more information on including bonuses in an employee’s regular rate of pay, see Practice Note,
The Regular Rate of Pay Under the FLSA: Statutory Exclusions.
Bonuses Under Minnesota Wage and Hour Laws
In Minnesota, discretionary bonuses are not part of the regular rate of pay for overtime purposes
(Minn. R. 5200.0140(C)). For more information, see State Q&A, Wage and Hour Laws: Minnesota:
Question 3.
END DRAFTING NOTE
[Equal Pay
[EMPLOYER] prohibits pay discrimination on the basis of sex. Employees in the same work location who
perform substantially equal work will be paid at the same rate regardless of their sex, except where
differences in pay are based on:
• A seniority, merit, or incentive system.
• Any factor other than an employee’s sex.
This Policy covers jobs that require substantially equal skill, effort, and responsibility and are performed
under similar working conditions.
If you believe that you have been discriminated against in violation of this Policy, you [should/must]
immediately report your concerns to the [DEPARTMENT]. For more information on how to report concerns
about your pay, please see the Employee Complaint Procedure section of this Policy.]
Pay Transparency
[EMPLOYER] will not discipline, discharge, or otherwise discriminate or retaliate against employees or
applicants because they have:
• Inquired about, discussed, or disclosed their own pay or the pay of another employee or applicant.
• Filed a complaint under this Policy.
• Testified or participated in an investigation related to this Policy.

[However, employees who have access to the compensation information of other employees or applicants
as a part of their essential job functions cannot disclose the pay of other employees or applicants to
individuals who do not otherwise have access to compensation information, unless the disclosure is:
• In response to a formal complaint or charge.
• In furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted

by [EMPLOYER].
• Consistent with [EMPLOYER]’s legal duty to furnish information.]
If you believe that you have been discriminated or retaliated against in violation of this Policy, you
[should/must] immediately report your concerns to the [DEPARTMENT]. For more information on how to
report concerns about your pay, please see the Employee Complaint Procedure section of this Policy.
[If you believe [EMPLOYER] has violated your pay transparency rights you may file an action against
[EMPLOYER] in court. If the court agrees it may require reinstatement, back pay, restoration of lost service
credit, if appropriate, and the expungement of any related adverse records of an employee who was the
subject of the violation.]
Drafting Note: Equal Pay Policies
Equal Pay
The FLSA, as amended by the Equal Pay Act, prohibits sex-based wage differentials for employees
in the same workplace performing jobs that both:
• Require equal skill, effort, and responsibility.
• Are performed under similar working conditions.
An exception is allowed for wage differentials based on any of the following:
• A seniority or merit system.
• A system that measures earnings by quantity or quality of production.
• A differential based on any other factor other than sex.
(29 U.S.C. § 206(d)(1); see also Practice Note, Wage and Hour Law: Overview: Equal Pay.)
Minnesota law prohibits sex-based wage differentials for equal work on jobs performed under similar
working conditions and whose performance requires equal skill, effort, and responsibility. Minnesota
law allows wage differentials based on:

• A seniority system.
• A merit system.
• A system which measures earnings by quantity or quality of production.
• Any factor other than sex.
(Minn. Stat. Ann. § 181.67, subd. 1.)
Employers should consider customizing their payroll practices and compensation policy to inform
employees of the company’s equal pay policy and provide a mechanism for reporting possible
violations of that policy. The optional language presented above is for that purpose.
Pay Transparency
The FLSA does not expressly limit an employer’s ability to ban employees from discussing or
inquiring about their pay. Other federal, Minnesota, and local law, however, may prohibit those
policies. For example:
• The National Labor Relations Board (NLRB) interprets employee rights to engage in
concerted activity under the NLRA to include discussing their pay (see, for example, Legal
Update, Discussing Wages with Fellow Employees is Inherently Concerted Activity: NLRB).
• Federal contractors and subcontractors cannot discipline employees for discussing or inquiring
about their pay (Executive Order No. 11246 (Sept. 24, 1965); see also Labor and Employment
Statutes, Regulations, and Executive Orders Governing Federal Contractors Chart: Overview).
• Minnesota law regulates pay transparency. Employers must include a notice of rights and
remedies related to pay transparency in an employee handbook if that handbook is provided to
employees. Employers may not:
• require wage nondisclosure by an employee as a condition of employment;
• require an employee to sign a waiver or other document which denies an employee the
right to disclose the employee’s wages; or
• take any adverse employment action against an employee for disclosing the employee’s
own wages or discussing another employee’s wages which have been disclosed
voluntarily.
• (Minn. Stat. § 181.172.)

Employers including a pay transparency policy in their payroll practices and compensation policy can
use the optional language presented above for that purpose.
END DRAFTING NOTE
Employee Complaint Procedure
If you believe there are any errors in your pay, including that you have been overpaid or underpaid, that
improper deductions have been made from your pay, that you have been misclassified as exempt from
overtime pay, or that your pay does not properly compensate you for all hours worked, including overtime
hours, off-the-clock work, and work performed during [lunch/meal] [or rest] breaks, you [must/should]
immediately report your concerns to [your manager or] [[TITLE]/[DEPARTMENT]]. [EMPLOYER] will
promptly investigate all reported complaints. If appropriate, [EMPLOYER] will take corrective action as soon
as practicable, including reimbursing any improper pay deductions.
[EMPLOYER] prohibits and will not tolerate retaliation against any employee because that employee filed a
good faith complaint under this Policy. Specifically, no one will be denied employment, promotion, or any
other benefit of employment or be subjected to any adverse employment action based on their good faith
complaint. In addition, no one will be disciplined, intimidated, or otherwise retaliated against because they
exercised their rights under this Policy or applicable law. If you believe you have been the victim of
retaliation in violation of this Policy, report your concerns immediately to [your manager or]
[[TITLE]/[DEPARTMENT]].
Drafting Note: Employee Complaint Procedure
The employee complaint procedure language presented above helps employers minimize the risk of
wage and hour claims, including for unpaid minimum wage and overtime compensation, by, for
example:
• Giving employees an opportunity to resolve their concerns before they escalate to litigation or a
complaint to the Department of Labor or state or local equivalent agency.
• Ensuring that timekeeping records are complete and accurate by providing employees with a
procedure for reporting:
• discrepancies in their time records; and
• supervisors or managers who require or encourage OTC work.
• Providing the company with a means to identify:

• improper pay practices;
• supervisors, managers, and other employees who may require additional training on the
company’s payroll practices and compensation policy; and
• issues that may require a broader review or audit.
• Providing the complaint mechanism required under the FLSA’s salary basis safe harbor
defense (see Drafting Note, Payroll Deductions).
Employers should customize the complaint procedure as appropriate for their particular
circumstances. For example, if the company has a telephone number or website for reporting
complaints, it should include that information.
END DRAFTING NOTE
Administration of This Policy
The [DEPARTMENT] is responsible for the administration of [EMPLOYER]’s Payroll Practices and
Compensation Policy. If you have any questions regarding this Policy or if you have questions about payroll
practices that are not addressed in this Policy, please contact the [DEPARTMENT].
Any employee who abuses this Policy will be subject to disciplinary action, up to and including termination of
employment.
[Employees Covered Under a Collective Bargaining Agreement
The employment terms set out in this Policy work in conjunction with, and do not replace, amend, or
supplement any terms or conditions of employment stated in any collective bargaining agreement that a
union has with [EMPLOYER]. [Employees should consult the terms of their collective bargaining
agreement./Wherever employment terms in this Policy differ from the terms expressed in the applicable
collective bargaining agreement with [EMPLOYER], employees should refer to the specific terms of the
collective bargaining agreement, which will control.]]
Drafting Note: Disclaimer for Unionized Employees Covered Under a Collective Bargaining
Agreement
Employers that choose to include this disclaimer should consider whether to include optional
language referring employees to either their:
• Applicable CBA.

• Union’s CBA, and noting that the CBA controls whenever employment terms set out in a policy
differ from the terms of the CBA.
For more information on this optional disclaimer and choosing between these optional alternatives,
see Standard Clause, Employment Policy Disclaimer for Unionized Employees Covered Under a
Collective Bargaining Agreement: Drafting Note: Optional Language About Overlaps with Collective
Bargaining Agreement Terms.
END DRAFTING NOTE
[Acknowledgment of Receipt and Review
[I, _______________________ (employee name), acknowledge that on _____________________ (date), I

received a copy of [EMPLOYER]’s Payroll Practices and Compensation Policy and that I read it, understood
it, and agree to comply with it. I understand that [EMPLOYER] has the maximum discretion permitted by law
to interpret, administer, change, modify, or delete this Policy at any time [with or without notice]. No
statement or representation by a supervisor or manager or any other employee, whether oral or written, can
supplement or modify this Policy. Changes can only be made if approved in writing by the [POSITION] of
[EMPLOYER]. I also understand that any delay or failure by [EMPLOYER] to enforce any work policy or rule
will not constitute a waiver of [EMPLOYER]’s right to do so in the future. I understand that neither this Policy
nor any other communication by a management representative or any other employee, whether oral or
written, is intended in any way to create a contract of employment. I understand that, unless I have a written
employment agreement signed by an authorized [EMPLOYER] representative, I am employed at will and
this Policy does not modify my at-will employment status. If I have a written employment agreement
signed by an authorized [EMPLOYER] representative and this Policy conflicts with the terms of my
employment agreement, I understand that the terms of my employment agreement will control.
OR
I, ________________________ (employee name), acknowledge that on ______________________ (date),

I received and read a copy of [EMPLOYER]’s Payroll Practices and Compensation Policy[, dated [EDITION
DATE]] and understand that it is my responsibility to be familiar with and abide by its terms. [I understand
that the information in this Policy is intended to help [EMPLOYER]’s employees to work together effectively
on assigned job responsibilities.] This Policy is not promissory and does not set terms or conditions of
employment or create an employment contract.]
________________________
Employee’s Signature
________________________
Employee’s Printed Name
________________________
Date]

Drafting Note: Acknowledgment
A signed acknowledgment of receipt, review, and understanding of any employee policy minimizes
the potential for employees to later claim ignorance of that policy as an excuse for non- compliance.
Although an acknowledgment included at the end of an employee handbook allows an employer to
use one acknowledgment for all policies contained in the handbook, an employer’s ability to prove
acknowledgment of some policies is so important that they sometimes choose to present them as
stand-alone policies.
Before using this acknowledgment, employers should ensure their policies comply with applicable
laws and do not violate or otherwise interfere with employee rights. For example, employers should
not maintain or implement policies that interfere with employees’ Section 7 rights under the NLRA.
For more information, see Standard Document, Stand-Alone Policy Acknowledgment: Drafting Note:
Read This Before Using Document.
Employers using this policy as a stand-alone policy for their nonunionized employees should include
the first alternative acknowledgment. However, employers using this policy as part of a larger
handbook for nonunionized employees can use a single acknowledgment for the entire handbook
(see Standard Document, Employee Handbook Acknowledgment).
Employers using this policy as a stand-alone policy for their unionized employees should include the
second alternative acknowledgment. This alternative acknowledgment does not require a unionized
employee to acknowledge the employer’s right to modify or delete its provisions without notice or
terminate employment at will. The NLRB may consider those statements evidence of a violation of an
employer’s duty to bargain with the employee’s union before making changes to terms or conditions
of employment under Sections 8(a)(5) and 8(d) of the NLRA (see United Cerebral Palsy of N.Y.C. ,
347 N.L.R.B. 603 (2006)).
Employers using this policy as part of a larger handbook applicable to unionized employees can use
a single acknowledgment for the entire handbook (see Standard Document, Unionized Employee
Handbook Acknowledgment).
END DRAFTING NOTE

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Payroll Practices and Compensation Policy (MN)

Practical Law Standard Document w-000-6787

Search Query: convertible note compliance

Jurisdiction: United States (Minnesota)

Date: April 16, 2024 at 1:03 AM

Delivered By: Abhyuday Agarwal

Client ID: NO CLIENT ID

© 2024 Thomson Reuters. No claim to original U.S. Government Works.

Payroll Practices and Compensation Policy (MN)

Law stated as of 21 Dec 2023 • Minnesota

Drafting Note: Read This Before Using Document

The Fair Labor Standards Act

• Explaining employee classifications, including exempt status under the FLSA.

• Defining the workweek and the employer’s business hours.

• Setting a payroll schedule.

• Identifying mandatory and permissible payroll deductions.

© 2024 Thomson Reuters. No claim to original U.S. Government Works. 2

• Setting procedures for:

• meal and rest breaks; and

• how and when wages are to be paid;

• the hours of nurses;

• wages to surviving spouses;

• wage discrimination based on sex; and

© 2024 Thomson Reuters. No claim to original U.S. Government Works. 3

Specific Industries and Unionized Workforces

• Report-in and call-back pay.

• Meal, lodging, and tip credits.

• Incentive compensation and non-discretionary bonuses.

• Use of electronic communications away from work.

Pre-Employment Compensation Issues

• Practice Note, State and Local Salary History Bans.

• Salary History Information: Best Practices Checklist.

• Standard Document, Salary History Inquiry Policy.

© 2024 Thomson Reuters. No claim to original U.S. Government Works. 4

Compliance with the National Labor Relations Act

PAYROLL PRACTICES AND COMPENSATION POLICY (MN)

[EMPLOYER] also assigns each employee to one of the following categories:

© 2024 Thomson Reuters. No claim to original U.S. Government Works. 5

Drafting Note: Employee Classifications

Employee classifications typically identify which employees are:

Employers should customize the classification descriptions to comply with applicable:

• Collective bargaining agreements (CBAs) that:

• establish additional or different employee classifications.

• for hours worked over eight in a workday; or

© 2024 Thomson Reuters. No claim to original U.S. Government Works. 6

END DRAFTING NOTE

Workweek and Business Hours

Drafting Note: Workweek and Business Hours

• Determine when nonexempt employees work more than 40 or 48 hours in a particular

• Properly calculate overtime pay for that workweek.

© 2024 Thomson Reuters. No claim to original U.S. Government Works. 7

• Are subject to a specific schedule.

• Must comply with timekeeping requirements.

• Must have permission before working overtime hours.

END DRAFTING NOTE

© 2024 Thomson Reuters. No claim to original U.S. Government Works. 8

Drafting Note: Payday

Minnesota employers generally must pay employees on regular, designated paydays:

• At least once every three months for commissions.