New Minnesota Law Protects Workers from Wage Theft

By Kathleen Mackey
USW Intern

Minnesota Gov. Tim Walz, a member of the Democratic Farmer-Labor Party, signed into a law last week a measure to protect workers against wage theft in the state by imposing strict penalties.

The law will double the number of state investigators probing wage-theft allegations and subject violators to felony records and prison terms.

The Minnesota Department of Labor and Industry estimates that $12 million is lost yearly as a result of wage theft. Wage theft can occur through wrongful withholdings, failure to pay at least minimum wage or the agreed upon wage rate, and denying payment for mandatory breaks or overtime.

“This is the same thing as if they walked in and took the money from you,” Walz said after the signing. “It’s insidious in that it undermines our faith in the system.”

Employers now face felony charges if they fail to pay their workers the wages to which they are entitled. They will also be required to provide new employees with written notice of employment terms, and the state will allocate about $2 million annually toward enforcement of the state’s wage and hour laws.

Under this law, which will apply to violations occurring on or after Aug. 1, 2019, the penalties will vary based on the value of the theft. For example, if the amount of theft ranges from $1,000-4,999, the penalty could be a maximum imprisonment of five years, or a maximum fine of $10,000. If the theft is $35,000 or higher, the maximum imprisonment could be 20 years – and the maximum fine could be $100,000.

The state of Colorado has also increased penalties under the Human Right to Work With Dignity Act. Signed by Colorado Gov. Jared Polis, the new law deems nonpayment as theft punishable as felony when the stolen amount exceeds $2,000.

Minnesota State Sen. Eric Pratt told the Star Tribune that the agreement on wage-theft protections in Minnesota was a bipartisan effort to put political differences aside and prioritize the needs of working Minnesotans. While he alluded to the possibility of putting more money towards wage-theft investigations in the future, he said he hopes this new law will prevent business owners from stealing wages in the first place.

“We agreed on a core value: If you earn a wage, you should be paid a wage. It’s that simple,” Pratt said. “And if you’re stealing somebody’s wages, if you’re attempting to defraud somebody, you should pay a penalty.”


Posted In: Union Matters

Union Matters

Get to Know AFL-CIO's Affiliates: National Association of Letter Carriers

From the AFL-CIO

Next up in our series that takes a deeper look at each of our affiliates is the National Association of Letter Carriers.

Name of Union: National Association of Letter Carriers (NALC)

Mission: To unite fraternally all city letter carriers employed by the U.S. Postal Service for their mutual benefit; to obtain and secure rights as employees of the USPS and to strive at all times to promote the safety and the welfare of every member; to strive for the constant improvement of the Postal Service; and for other purposes. NALC is a single-craft union and is the sole collective-bargaining agent for city letter carriers.

Current Leadership of Union: Fredric V. Rolando serves as president of NALC, after being sworn in as the union's 18th president in 2009. Rolando began his career as a letter carrier in 1978 in South Miami before moving to Sarasota in 1984. He was elected president of Branch 2148 in 1988 and served in that role until 1999. In the ensuing years, he worked in various roles for NALC before winning his election as a national officer in 2002, when he was elected director of city delivery. In 2006, he won election as executive vice president. Rolando was re-elected as NALC president in 2010, 2014 and 2018.

Brian Renfroe serves as executive vice president, Lew Drass as vice president, Nicole Rhine as secretary-treasurer, Paul Barner as assistant secretary-treasurer, Christopher Jackson as director of city delivery, Manuel L. Peralta Jr. as director of safety and health, Dan Toth as director of retired members, Stephanie Stewart as director of the Health Benefit Plan and James W. “Jim” Yates as director of life insurance.

Number of Members: 291,000 active and retired letter carriers.

Members Work As: City letter carriers.

Industries Represented: The United States Postal Service.

History: In 1794, the first letter carriers were appointed by Congress as the implementation of the new U.S. Constitution was being put into effect. By the time of the Civil War, free delivery of city mail was established and letter carriers successfully concluded a campaign for the eight-hour workday in 1888. The next year, letter carriers came together in Milwaukee and the National Association of Letter Carriers was formed.

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There is Dignity in All Work

There is Dignity in All Work