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A Minnesota employment contract establishes the terms by which an employee agrees to work for a business or organization. Although employers aren’t required to have employees execute a contract, including one in the hiring process will enforce their company’s regulations and decrease their liability. The document will relay the employee’s work duties, rate of pay, employee benefits, contract termination date (if applicable), vacation time, and paid leave. Once both parties have signed the contract, they will be bound to its terms until the employee is terminated, quits their job, or the employment ends on a predetermined termination date.
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Types (2)
Independent Contractor Agreement – For self-employed individuals to enter into a working arrangement with a client.
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Subcontractor Agreement – Allows a self-employed individual to work for another contractor as a subcontractor on a larger project.
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Laws
- Labor Statutes: Chapters 175-186
- Definition of Employee: § 176.011(9)
- Minimum Wage: $10.33 or $8.42/hr (§ 177.24, Dept. of Labor)
- Large employers (earning $500,000+ per year) – $10.33
- Small employers (earning less than $500,000 per year) – $8.42
- Overtime: Employees must be paid of one and a half (1.5) times their regular pay for each hour worked in excess of forty-eight (48) hours in a week (§ 177.25, Subd. 1).
- Record Keeping: If an employer has twenty (20) or more employees, they must maintain personnel records on all their employees. Employee records must be maintained for at least three (3) years (§ 181.960, § 516).
At-Will Employment
Permitted? Yes, Minnesota is an “at-will” employment state, which means that an employer can fire their employees for any legal reason. Illegal reasons include discrimination based on race, religion, sexual orientation/identity, age, disability, sexual orientation, or marital status (Title VII of the CRA, 29 U.S.C. § 623, Americans with Disabilities Act, § 7-11-3(4)(d)). Furthermore, an employee cannot be terminated for reporting a violation by their employer (whistle-blowing), exercising their rights, or participating in a legal investigation (§ 181.932).
After being terminated, an employee has the right to request from their employer a written explanation for why they were fired. To exercise this right, the employee must submit a written request within fifteen (15) days of their termination. The employer will have ten (10) days to respond to the request (§ 181.933).