New Wage Theft Ordinance Strengthens Worker Protections

"All Saint Paul workers are entitled to fair treatment and fair wages," said Mayor Melvin Carter. "Aligning our workers' rights policies with the state's boosts compliance and reinforces our values of equity, fairness, and the right to work."

Wage theft occurs any time employers fail to pay wages employees are legally entitled to, including paying below minimum wage, not paying overtime, requiring work without pay, denying legal breaks, misclassification, withholding tips, non-payment of fringe benefits, and illegal deductions.

Saint Paul City Council President Mitra Jalali said, "Saint Paul workers deserve protection from wage theft and recourse if their employer skirts the law. I am deeply proud that our Capitol city will ensure Minnesota's model state law is upheld. I am grateful to our labor leaders and city staff whose diligent work made this ordinance possible."

"Saint Paul can play an important role in fighting for all workers. I'm proud to co-lead this new wage theft ordinance with Council President Jalali, particularly for our migrant workers who are both more likely to have their wages stolen and are less likely to seek recourse," said Council Vice President HwaJeongKim. "Passing this ordinance sends a strong message to workers in Saint Paul that wage theft is a serious violation and there are paths available to recover hard earned wages."

Ward 7 Councilmember Cheniqua Johnson added, "It's simple-Saint Paul residents who work should get paid what they're owed. Our state stands with workers across Minnesota, and it's time for Saint Paul to do the same. I support this ordinance because we must stand with our workers to ensure they are treated fairly and receive the wages they deserve."

The new ordinance does not make any new requirements for employers or employees as it aligns with current state law, however it does give the HREEO Department labor standards investigators the enforcement capacity to investigate allegations of wage theft. It also provides Saint Paul businesses with local tools to address any instances of employees being taken advantage of or suspected wage theft.

"By passing this ordinance, we are sending a clear message that wage theft will not be tolerated in our city. This ordinance is a crucial step towards creating a more just and equitable workforce that prevents exploitation of vulnerable workers," Ward 6 Councilmember Nelsie Yangshared.

"Wage theft erodes the workforce, and employers and employees lose confidence in the systems that are there to support them," said Human Rights and Equal Economic Opportunity (HREEO) Interim Director Beth Commers. "A civil wage theft ordinance provides better protection for all workers in Saint Paul and a clear recourse if an employer engages in wage theft."

"The LSAC has been working in partnership with the city to address a very real problem in our community. The domino effects of wage theft are devastating for workers and their families. Without a relevant ordinance, workers throughout the city have often found themselves without recourse when facing wage theft, and businesses operating in good faith in our communities suffer," said Alanna Galloway, Labor Standards Advisory Committee Co-Chair.

Kera Peterson, Saint Paul Regional Labor Federation President and Labor Standards Advisory Committee Memberadded, "Wage theft is one of the largest types of theft in our country and is a pervasive and systemic problem throughout Minnesota. It affects workers in all sectors of our economy. This ordinance helps to make workers in Saint Paul more secure and helps level the playing field for employers who are following our state laws and local ordinances."