Employment contracts - Minnesota

Summary of differences between federal and state regulations

Federal law generally does not regulate employment contracts between employers and employees with one exception: contracts that require the joining or refraining from joining of a labor union as a condition of employment. On the federal level, these contracts are governed by the National Labor Relations Act. States may have a corresponding provision and may also have additional provisions regarding employment contracts.

Minnesota does have a union membership provision similar to federal law, and additional provisions.

Union membership

An employer may not require a person to enter into any verbal or written agreement not to join, become, or remain a member of a labor union as a condition of employment. §179.60

Refund of wages

An employer may not demand from any employee any refund from the wages owed to the employee under a contract of employment, or in any way make it appear that wages paid to the employee were greater than the amount actually paid. §181.03

Terms of contract

An employment contract shall be written and clearly state the date of the agreement, the date the employee’s services are to begin, the rate of pay, the number of hours in a work day and if overtime will be required and paid for, and a statement of any special responsibility to be performed by the employee which if not properly performed will allow the employer to make deductions from the employee’s pay.   §181.55

Breach of contract

Where an employment contract between an employer and employee is violated, the grieved party’s remedy will be found in law, and no injunction will be granted unless irreparable damage is about to be committed upon either the property or the property right of one of the parties to the contract. §185.04

Inventions

Any provision in an employment agreement which provides that an employee shall assign the employee's rights in an invention to the employer shall not apply to an invention for which no equipment, supplies, facilities or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless the invention relates to the business of the employer or the invention results from any work performed by the employee for the employer. Any written agreement between the employer and employee must state this. §181.78

Waiver of rights

An employee can not enter into an agreement with the employer to waive his rights to unemployment benefits, nor to agree to pay any portion of an employer’s unemployment compensation taxes. §268.192

Contract for deductions

An employer and employee may enter into a written contract which sets forth the payroll deductions which will be taken from the employee’s wages. §181.06(2)

Deductions for fees

An employment contract may not authorize an employer to deduct an employment agency fee from the salary of the applicant. Any authorizations for deductions must be a separate agreement. §5200.0630

State

Contact

Minnesota Department of Labor and Industry

State Regulations

Union membership

Minnesota Statutes Chapter 179, §179.60

Refund of wages

Minnesota Statutes Chapter 181, §181.03

Terms of contract

Minnesota Statutes Chapter 181, §181.55

Breach of contract

Minnesota Statutes Chapter 185, §185.04

Inventions

Minnesota Statutes Chapter 181, §181.78

Waiver of rights

Minnesota Statutes Chapter 268, §268.192

Contract for deductions

Minnesota Statutes Chapter 181, §181.06(2)

Deductions for fees

Minnesota Rules Ch. 5200, §5200.0630

Federal

Contact

National Labor Relations Board

Regulations

National Labor Relations Act

29 U.S.C. §§151-169