Effective August 1, 2024, the Minnesota Fair Labor Standards Act is amended by adding a subdivision to the law that requires employers to credit gratuities received by electronic payment (i.e., debit card, credit cards, etc.) to the pay period in which they are received and distribute the full amount of such gratuities to the employee no later than the next scheduled payday.
Employers with tipped employees should become familiar with this change to ensure that their tip payment practices meet the requirements of the law. Employers should also review and adjust their payroll practices, update any correlating written policies or procedures, and ensure these changes are communicated to impacted employees.
