WAGE AND HOUR DEMAND LETTER
State of Minnesota
Minnesota Fair Labor Standards Act and Federal FLSA Claims
[ATTORNEY/FIRM LETTERHEAD]
[Firm Name]
[Address Line 1]
[City, Minnesota ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[Minnesota Attorney License Number]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]
[Date]
[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]
Copy to:
[Company General Counsel, if known]
[Registered Agent, if different]
Re: Wage and Hour Violations - [Client Full Name]
[and All Similarly Situated Employees - if collective/class action contemplated]
Demand for Unpaid Wages Under Minnesota Law and FLSA
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO MINN. R. EVID. 408
Dear [Mr./Ms./Mx. Last Name]:
This firm has been retained by [Client Full Name] ("our client") to pursue claims for unpaid wages against [Company Legal Name] ("[Company Short Name]" or "the Company") arising from violations of the Minnesota Fair Labor Standards Act, Minn. Stat. Section 177.21 et seq., the Minnesota Payment of Wages Act, Minn. Stat. Section 181.01 et seq., and the Fair Labor Standards Act ("FLSA"), 29 U.S.C. Section 201 et seq.
Please direct all further communications regarding this matter to our office.
I. MINNESOTA-SPECIFIC LEGAL FRAMEWORK
A. Applicable Wage and Hour Law
Minnesota has its own comprehensive wage and hour laws, including a state minimum wage and overtime provisions. Notably, Minnesota's overtime threshold is 48 hours per week under state law, though federal FLSA's 40-hour threshold applies to covered employers.
Key Legal Framework:
| Category | Minnesota Requirement | Citation |
|---|---|---|
| Minimum Wage (Large Employer) | $10.85/hour (annual revenue > $500,000) | Minn. Stat. Section 177.24 |
| Minimum Wage (Small Employer) | $8.85/hour (annual revenue < $500,000) | Minn. Stat. Section 177.24 |
| Youth Minimum | $8.85/hour (under 18) | Minn. Stat. Section 177.24 |
| Training Wage | $8.85/hour (first 90 days, under 20) | Minn. Stat. Section 177.24 |
| State Overtime | 1.5x regular rate after 48 hours/week | Minn. Stat. Section 177.25 |
| FLSA Overtime | 1.5x regular rate after 40 hours/week | 29 U.S.C. Section 207 |
B. Statute of Limitations
| Claim Type | Limitations Period | Citation |
|---|---|---|
| Minnesota wage claims | 2 years | Minn. Stat. Section 541.07 |
| FLSA (standard) | 2 years | 29 U.S.C. Section 255(a) |
| FLSA (willful) | 3 years | 29 U.S.C. Section 255(a) |
| Breach of Contract | 6 years | Minn. Stat. Section 541.05 |
C. Minnesota Wage Payment Requirements
Payment Timing Requirements (Minn. Stat. Section 181.101):
| Situation | Requirement | Citation |
|---|---|---|
| Regular wages | At least once every 31 days | Minn. Stat. Section 181.101 |
| Involuntary termination | Within 24 hours if demanded; otherwise next regular payday | Minn. Stat. Section 181.13 |
| Voluntary resignation | Next regular payday | Minn. Stat. Section 181.14 |
| Commissions | Per written agreement; within 3 days of computation if no agreement | Minn. Stat. Section 181.145 |
Payroll Deductions (Minn. Stat. Section 181.79):
- Written authorization required for deductions
- Deductions cannot reduce wages below minimum wage
- Must be for lawful purpose and employee's benefit
D. Enforcement Mechanisms
Administrative:
- Minnesota Department of Labor and Industry (DLI)
- Labor Standards Division
- File complaint at dli.mn.gov
Private Right of Action:
- Minn. Stat. Section 177.27: Private action for minimum wage and overtime
- Minn. Stat. Section 181.171: Private action for wage payment violations
- Liquidated damages equal to unpaid wages
- Reasonable attorney's fees and costs
E. Minnesota Tip Credit Rules
IMPORTANT: Minnesota does not allow a tip credit. Employers must pay the full minimum wage before tips.
| Requirement | Standard | Citation |
|---|---|---|
| Cash wage minimum | Full minimum wage ($10.85/$8.85) | Minn. Stat. Section 177.24 |
| Tip credit | NOT ALLOWED | Minn. Stat. Section 177.24 |
| Tip pooling | Valid only among customarily tipped employees | Federal rules apply |
| Employer tip retention | Prohibited | Federal and state law |
II. INTRODUCTION AND SUMMARY OF CLAIMS
Our client was employed by [Company Short Name] as a [Job Title] from [Start Date] to [End Date / Present], working at [Work Location(s)] in Minnesota. During this employment, [Company Short Name] violated Minnesota wage laws by:
[ ] Failing to pay the Minnesota minimum wage of $10.85/$8.85 per hour
[ ] Failing to pay overtime compensation at 1.5 times the regular rate for hours worked over 40/48 per week
[ ] Misclassifying our client as exempt from overtime when [he/she/they] should have been classified as non-exempt
[ ] Misclassifying our client as an independent contractor when [he/she/they] was an employee entitled to wage protections
[ ] Improperly taking a tip credit when Minnesota law prohibits tip credits
[ ] Failing to pay wages on regular paydays in violation of Minn. Stat. Section 181.101
[ ] Failing to pay final wages within required time periods
[ ] Failing to pay for all hours worked, including:
[ ] Off-the-clock work before/after shifts
[ ] Uncompensated meal periods during which work was performed
[ ] Time spent on required pre-shift or post-shift activities
[ ] Travel time that should have been compensated
[ ] Training time
[ ] Making unlawful deductions from wages
[ ] Failure to pay earned commissions
III. FACTUAL BACKGROUND
A. Employment Relationship
| Category | Details |
|---|---|
| Employee Name | [Client Full Name] |
| Job Title(s) | [Title(s)] |
| Dates of Employment | [Start Date] to [End Date / Present] |
| Work Location(s) | [Address(es) in Minnesota] |
| Primary Duties | [Describe job duties] |
| Rate of Pay | $[Amount] per [hour/week/year] |
| Classification | [Exempt / Non-Exempt / Independent Contractor] |
| Pay Frequency | [Weekly / Bi-weekly / Monthly] |
| Supervisor(s) | [Name(s) and Title(s)] |
B. Hours Worked
Our client regularly worked the following schedule:
Typical Weekly Schedule:
| Day | Scheduled Hours | Actual Hours Worked | Unpaid Time |
|---|---|---|---|
| Monday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Tuesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Wednesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Thursday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Friday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Saturday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Sunday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Weekly Total | [X hours] | [X hours] | [X hours] |
Average overtime hours per week not compensated at 1.5x rate: [X hours]
C. Specific Wage Violations
[Detail specific violations as applicable - off-the-clock work, misclassification, tip credit violations, late payment, etc.]
IV. LEGAL ANALYSIS
A. Minnesota Fair Labor Standards Act Violations
1. Minimum Wage Requirements (Minn. Stat. Section 177.24)
Minnesota requires employers to pay at least $10.85 per hour (large employers) or $8.85 per hour (small employers). By [describe violation], [Company Short Name] failed to pay our client the minimum wage.
2. Overtime Requirements (Minn. Stat. Section 177.25)
Minnesota requires employers to pay overtime at 1.5 times the regular rate for hours worked over 48 in a workweek. However, federal FLSA applies the 40-hour threshold to covered employers.
3. No Tip Credit
Minnesota does not permit employers to take a tip credit against minimum wage. If [Company Short Name] paid our client less than minimum wage based on a tip credit, this is a direct violation of Minn. Stat. Section 177.24.
B. Minnesota Payment of Wages Act Violations
1. Timely Payment (Minn. Stat. Section 181.101)
Employers must pay wages at least once every 31 days. [Company Short Name] failed to pay wages in a timely manner by [describe specific violation].
2. Final Wage Payment (Minn. Stat. Sections 181.13-181.14)
Terminated employees who demand payment must receive final wages within 24 hours. [Company Short Name] failed to comply by [describe violation].
C. FLSA Violations
1. Enterprise Coverage
[Company Short Name] is subject to the FLSA because it is an enterprise engaged in commerce with annual gross sales of at least $500,000. 29 U.S.C. Section 203(s)(1)(A).
2. Overtime Requirements (29 U.S.C. Section 207)
The FLSA requires employers to pay non-exempt employees overtime at a rate of 1.5 times the regular rate for all hours worked over 40 in a workweek.
D. Liquidated Damages
Under Minn. Stat. Section 177.27, our client is entitled to liquidated damages equal to the amount of unpaid wages. Under the FLSA, 29 U.S.C. Section 216(b), our client is also entitled to FLSA liquidated damages.
V. DAMAGES CALCULATION
A. Minnesota and FLSA Damages
Relevant Period: [Start Date - 2 years prior to anticipated filing] to [End Date / Present]
Total Weeks in Period: [X weeks]
1. Unpaid Overtime
| Period | Avg. OT Hours/Week | Regular Rate | OT Rate (1.5x) | Unpaid OT/Week | Weeks | Total |
|---|---|---|---|---|---|---|
| [Period 1] | [X] | $[X.XX] | $[X.XX] | $[X.XX] | [X] | $[Amount] |
| Unpaid Overtime Subtotal | $[Amount] |
2. Unpaid Minimum Wage / Tip Credit Violations
| Period | Hours Below MW | Shortfall/Hour | Weeks | Total |
|---|---|---|---|---|
| [Period] | [X] | $[X.XX] | [X] | $[Amount] |
| Minimum Wage Subtotal | $[Amount] |
3. Off-the-Clock Work
| Activity | Hours/Week | Rate | Weeks | Total |
|---|---|---|---|---|
| [Pre-shift work] | [X] | $[X.XX] | [X] | $[Amount] |
| Off-the-Clock Subtotal | $[Amount] |
B. Summary of Damages
| Category | Amount |
|---|---|
| Minnesota Unpaid Wages | $[Amount] |
| Minnesota Liquidated Damages (Equal Amount) | $[Amount] |
| OR FLSA Liquidated Damages (Equal Amount) | $[Amount] |
| Pre-Judgment Interest | $[Amount] |
| Attorney's Fees (estimated) | $[Amount] |
| Costs (estimated) | $[Amount] |
| TOTAL INDIVIDUAL DAMAGES | $[Amount] |
C. Collective/Class Action Exposure
If this case proceeds as an FLSA collective action or state class action:
| Category | Individual | Estimated Class Size | Total Exposure |
|---|---|---|---|
| Unpaid Wages | $[Amount] | [X employees] | $[Amount] |
| Liquidated Damages | $[Amount] | [X employees] | $[Amount] |
| Collective Exposure | $[Amount] |
VI. SETTLEMENT DEMAND
Based on the foregoing, we demand that [Company Short Name] pay $[Settlement Demand Amount] to settle all claims of [Client Full Name].
This demand includes:
- Unpaid wages
- Liquidated damages
- Pre-judgment interest
- Attorney's fees and costs incurred to date
This demand will remain open for twenty-one (21) days from the date of this letter, expiring on [Response Deadline Date].
VII. RESPONSE AND LITIGATION
If we do not receive a satisfactory response by the deadline, we will file suit in:
[ ] Minnesota District Court, [County] County
[ ] United States District Court for the District of Minnesota
The Complaint will seek:
1. Unpaid wages under Minn. Stat. Section 177.24 and Section 181.01 et seq.
2. Unpaid overtime under Minn. Stat. Section 177.25 and 29 U.S.C. Section 207
3. Liquidated damages under Minn. Stat. Section 177.27 and 29 U.S.C. Section 216(b)
4. Attorney's fees and costs under Minn. Stat. Section 177.27 and 29 U.S.C. Section 216(b)
5. Class/collective certification
VIII. DOCUMENT PRESERVATION
LITIGATION HOLD NOTICE
[Company Short Name] must immediately preserve all documents and ESI relevant to these claims, including:
[ ] Time and attendance records
[ ] Payroll records and pay stubs
[ ] Personnel files and job descriptions
[ ] Employee handbooks and policies
[ ] Scheduling records
[ ] Communications regarding pay practices
[ ] Training materials
[ ] Prior DLI investigations
[ ] Tip records (if applicable)
Spoliation of evidence will result in severe sanctions.
IX. CONFIDENTIALITY
This letter is a confidential settlement communication protected under Minnesota Rule of Evidence 408 and applicable evidentiary privileges.
We look forward to your prompt response.
Sincerely,
[Attorney Name]
[Title]
[Firm Name]
[Minnesota Attorney License No.]
Enclosures:
[ ] Authorization to Represent
[ ] Pay stubs / wage statements (sample)
[ ] Time records (if available)
cc: [Client Name] (via email)
MINNESOTA-SPECIFIC PRACTICE NOTES
[ ] No Tip Credit: Minnesota does not allow tip credits; full minimum wage must be paid to all employees
[ ] Two Minimum Wages: Large employers ($500K+ revenue) pay $10.85/hour; small employers pay $8.85/hour
[ ] State Overtime at 48 Hours: Minnesota state overtime kicks in at 48 hours/week, but FLSA requires overtime at 40 hours for covered employers
[ ] 24-Hour Final Pay Rule: Terminated employees who demand payment must receive wages within 24 hours
[ ] Liquidated Damages: Available under both state (Minn. Stat. Section 177.27) and federal law
[ ] DLI Enforcement: Minnesota Department of Labor and Industry handles wage claims
- Website: dli.mn.gov
- Phone: (651) 284-5070
[ ] Commission Payments: Special rules under Minn. Stat. Section 181.145 for commission-based compensation
[ ] Nursing Mothers: Minn. Stat. Section 181.939 requires break time for nursing mothers
[ ] Court Venue:
- State District Court: Primary venue for state claims
- Federal District Court (Minneapolis/St. Paul): FLSA claims and diversity jurisdiction
[ ] Wage Theft Prevention: Minnesota has strong wage theft protections under Minn. Stat. Section 181.032