• The Minnesota labor board administers state wage laws.law courts image by Peter Helin from Fotolia.com
  
  The Minnesota Department of Labor and Industry sets the state's wage and hour laws. According to the department, Minnesota employers can terminate employees for any reason, provided it's not discriminatory. Additionally, the employee can quit or resign for any reason. Minnesota's labor board has specific payroll regulations concerning terminated employees.
  
  

Time Frame

• The United States Department of Labor, which sets federal wage and hour laws, says employers do not have to give employees their last paycheck immediately upon separation. But some states have varying regulations. The state of Minnesota requires employers to pay wages or commissions earned when the employee quits or resigns by the next regularly scheduled payday after the employee's separation date. An exception applies if an existing contract states otherwise. If the next regularly scheduled payday is less than five workdays after the separation date, the employer can pay the employee on the second regularly scheduled payday; but the total time frame should not be more than 20 days after the separation date. If the employer discharges the employee, wages and commissions earned are due immediately upon the employee's demand. The employer is in default if it doesn't pay the amount due within 24 hours after the employee demands payment.
  
  If the terminated employee handled money for the company or was entrusted with company property, the employer has 10 workdays after the separation date to review and modify the employee's account before paying final wages. Final wages and commissions must be paid to the employee at the usual payment location unless the employee requests payment via mail. The employee can file a wage claim with the Minnesota labor board to recover unpaid wages.
  
  

Benefits

• The decision to provide employee benefits, such as vacation pay, retirement and severance pay is entirely up to the employer. But if the employer gives these benefits, the state may have specific restrictions on how it is paid when an employee terminates. Minnesota law requires employers to pay employees benefits within 30 days of when company policy say they are due. Employers who purposely neglect to provide benefits or supplemental wages (such as severance) that are due in accordance with company policy can be convicted of gross misdemeanor. The employee can file a claim for benefits owed with the conciliation (small claims) court in the county that she works.
  
  

Taxes

• The employee's final paycheck is subject to payroll taxes. This includes deducting federal income tax, Social Security tax and Medicare tax according to Internal Revenue Service regulations. Additionally, the Minnesota Department of Revenue requires state income tax withholding. The employer should use the Minnesota Income Tax Withholding Instruction Booklet and Tax Tables to figure state income tax.