HR's Guide to Minnesota Leave Laws

For Minnesota employers, understanding the intricacies of the new Earned SIck and Safe Time (ESST) law is crucial for maintaining compliance and supporting your employees' well-being. In this article, we'll break down the key aspects of the law, including eligibility, accrual rates, permitted uses, and your responsibilities as an employer.

By familiarizing yourself with the ESST requirements, you can create a leave policy that not only meets legal standards but also fosters a supportive and inclusive workplace culture. Let's dive into the details of Minnesota's ESST law, along with other leave laws in the state, and explore how you can navigate these laws with confidence.

Understanding Earned Sick and Safe Time (ESST) in Minnesota

What is ESST?

Earned sick and safe time (ESST) is paid leave that employees in Minnesota can use for specific health and safety reasons. The Minnesota ESST law, which went into effect on Jan. 1, 2024, requires employers to provide this benefit to eligible employees.

Eligibility and Accrual

To be eligible for ESST, an employee must:

Be anticipated to work at least 80 hours in a year for a Minnesota employer
Not be classified as an independent contractor

Eligible employees earn one hour of ESST for every 30 hours worked, up to a maximum of 48 hours per year. Employers may choose to provide a higher accrual rate or maximum if desired.

Covered Uses and Family Members

Employees can use their accrued ESST for various reasons, including:

Their own illness, treatment, or preventive care
Caring for a family member's illness, treatment, or preventive care
Addressing domestic abuse, sexual assault, or stalking situations
Attending to matters related to the death of a family member

ESST can be used to care for a wide range of family members, such as children, spouses, siblings, parents, grandparents, and grandchildren. The law also allows employees to designate one additional individual annually.

Employer Responsibilities

As an employer, you have several key responsibilities under the ESST law:

Providing ESST information: At the end of each pay period, you must provide employees with the total number of ESST hours available and used.
Distributing ESST notice: By Jan. 1, 2024, or upon hiring new employees, you must provide a notice about ESST rights in English and the employee's primary language, if different.
Including ESST in handbooks: If your company has an employee handbook, you must include information about ESST in the handbook.

Navigating the Minnesota Paid Family and Medical Leave Act

In addition to the ESST law, Minnesota has also enacted the Paid Family and Medical Leave Act, which will provide employees with access to paid leave benefits starting Jan. 1, 2026. This groundbreaking legislation is designed to support employees during times of family and medical need, ensuring they can prioritize their well-being without sacrificing their financial stability.

The Paid Leave program offers two main types of leave:

Family Leave: Employees can take paid time off to care for a family member with a serious health condition or to bond with a new child (through birth, adoption, or foster care).
Medical Leave: Employees can use paid leave when their own serious health condition prevents them from working.

Beyond these primary categories, the Paid Leave Act also covers additional qualifying events, such as:

Military-related leave to support a family member called to active duty
Leave for employees or their family members facing significant personal safety issues

Recent legislative sessions have brought about expansions and clarifications to the Paid Leave Act, further strengthening employee protections. Key changes include:

Raising tax rates to support the program's funding
Broadening and clarifying the benefits to be paid under the act
Extending coverage to self-employed individuals and independent contractors who choose to register
Ensuring employees continue to receive payments when transitioning from private plans to state-administered plans

As an employer, it's essential to stay informed about the evolving landscape of employee leave laws in Minnesota. By understanding the requirements of both the ESST law and the Paid Family and Medical Leave Act, you can develop comprehensive leave policies that support your employees' needs and foster a positive, compliant workplace culture.

Ensuring Compliance with Minnesota's Pregnancy and Parental Leave Laws

Navigating employee leave laws in Minnesota can be complex, particularly when it comes to pregnancy and parental leave. Recent legislative changes have expanded protections for expecting and new parents, making it crucial for employers to stay up-to-date with these developments.

One key aspect of Minnesota's pregnancy and parental leave laws is the requirement to maintain the full 12 weeks of parental leave, regardless of any paid or unpaid leave taken for prenatal care medical appointments. This means that if an employee takes time off for prenatal appointments, it cannot be deducted from their allotted 12 weeks of parental leave.

In addition to preserving the full parental leave entitlement, employers must also continue providing insurance benefits for employees on leave and their dependents, as if the employees were actively working. This ensures that expecting and new parents can maintain their health coverage during this critical time without facing additional financial burdens.

To ensure compliance with these regulations, consider the following best practices:

Review and update leave policies: Examine your current leave policies to ensure they align with the latest pregnancy and parental leave requirements. Make any necessary updates to reflect the full 12-week entitlement and continuation of insurance benefits.
Communicate with employees: Clearly inform your employees about their rights and responsibilities related to pregnancy and parental leave. Provide them with resources and guidance to help them understand the process and make informed decisions.
Train managers and supervisors: Equip your management team with the knowledge and skills to handle pregnancy and parental leave requests appropriately. Ensure they understand the legal requirements and can support employees throughout the leave process.

By prioritizing compliance with Minnesota's pregnancy and parental leave laws, you can create a supportive environment for expecting and new parents while minimizing legal risks for your organization. Remember, investing in your employees' well-being during this transformative time can lead to increased loyalty, productivity, and overall job satisfaction.

Adapting to Changes in Minnesota's Earned Sick and Safe Time Law

As Minnesota's ESST law continues to evolve, it's crucial for employers to stay informed about the latest amendments and clarifications. These changes are designed to ensure that the law is implemented effectively and fairly, providing employees with the support they need while minimizing confusion for employers.

One notable clarification in the recent amendments addresses the calculation of ESST based on an employee's "base rate." This term refers to the employee's hourly wage or salary, excluding any additional compensation such as tips, commissions, or overtime pay. By specifying that ESST should be calculated using the base rate, the law aims to create a more consistent and equitable approach to providing paid leave.

To comply with this clarification, employers should:

Review payroll practices: Examine your current payroll system to ensure that ESST is being calculated based on employees' base rates. Make any necessary adjustments to align with the amended law.
Communicate with employees: Inform your employees about how their ESST will be calculated, emphasizing the use of their base rate. Provide clear examples to help them understand the impact on their paid leave accrual.
Update policies and procedures: Revise your company's ESST policies and procedures to reflect the base rate calculation method. Ensure that all relevant documents, such as employee handbooks and leave request forms, are updated accordingly.

In addition to the base rate clarification, the recent amendments to Minnesota's ESST law demonstrate the state's commitment to refining and improving this critical employee benefit. As an employer, it's essential to remain proactive in adapting to these changes, ensuring that your leave policies remain compliant and supportive of your employees' needs.

By staying informed about the latest developments in employee leave laws in Minnesota, you can foster a positive and legally sound workplace environment. Remember, investing in your employees' well-being through comprehensive leave policies can lead to increased job satisfaction, productivity, and loyalty, ultimately benefiting your organization as a whole.

Classifying Workers: Minnesota's New Independent Contractor Requirements

As you navigate the complexities of employee leave laws in Minnesota, it's crucial to ensure that your workers are correctly classified as employees or independent contractors. Misclassification can lead to serious consequences, including legal penalties and back taxes. To address this issue, Minnesota has enacted a new law focused on preventing employee misclassification, particularly in the construction industry.

The new legislation aims to clarify the criteria for determining whether a worker is an employee or an independent contractor. It establishes a presumption that a worker is an employee unless they meet specific requirements to be classified as an independent contractor. These requirements include:

Freedom from control: The worker must be free from the employer's control and direction in performing their services.
Separate business entity: The worker must operate as a separate business entity, with their own legal and financial responsibilities.
Customary engagement: The service provided by the worker must be distinct from the employer's usual course of business.

To comply with this new law, employers should:

Review worker classifications: Carefully examine the classification of your current workers, especially those in the construction industry. Evaluate whether they meet the criteria for independent contractor status under the new law.
Update contracts and agreements: Revise any contracts or agreements with independent contractors to ensure they clearly define the nature of the working relationship and meet the requirements of the new law.
Maintain accurate records: Keep detailed records of your worker classifications, including the reasoning behind each determination. This documentation can be invaluable in the event of an audit or legal challenge.

By proactively addressing worker classification issues and complying with Minnesota's new independent contractor requirements, you can minimize the risk of misclassification penalties and create a more transparent and equitable workplace.

Reviewing Minnesota's Ban on Certain Nonsolicitation Agreements

In addition to the various employee leave laws in Minnesota, the state has also recently enacted legislation that impacts the use of nonsolicitation agreements between service providers and their customers. This new law aims to protect consumers and promote fair competition by prohibiting certain types of restrictive covenants that can hinder individuals' ability to freely choose their service providers.

Under the new legislation, employers are barred from entering into agreements with their customers that prevent the customers from hiring the employer's employees or independent contractors who have provided services to them. This ban applies to a wide range of service industries, including:

Health care: Physicians, nurses, and other medical professionals
Personal services: Hairstylists, massage therapists, and fitness trainers
Business services: Accountants, attorneys, and consultants

The law seeks to ensure that customers have the freedom to continue working with service providers they have built relationships with, even if those providers leave their current employer. By eliminating restrictive nonsolicitation agreements, the legislation aims to foster a more dynamic and competitive marketplace for services.

As an employer in Minnesota, it's crucial to review your existing contracts and agreements with customers to ensure compliance with this new law. Consider the following steps:

Identify affected agreements: Examine your current contracts and agreements to determine if any contain nonsolicitation clauses that are now prohibited under the law.
Revise or remove restrictive clauses: Work with your legal counsel to revise or remove any nonsolicitation clauses that conflict with the new legislation. Ensure that your agreements align with the law's requirements.
Communicate with employees and customers: Inform your employees and customers about the changes in your agreements and the impact on their ability to work together in the future. Be transparent and proactive in your communication to maintain trust and understanding.

By complying with Minnesota's ban on certain nonsolicitation agreements, you can demonstrate your commitment to fair competition and customer choice while avoiding potential legal challenges. Remember, fostering positive relationships with your customers and employees is key to long-term success, and this new law aims to support that goal.

As you navigate the ever-changing landscape of employee leave laws and other employment regulations in Minnesota, it's essential to stay informed and adaptable. By prioritizing compliance, transparency, and employee well-being, you can create a thriving workplace that attracts and retains top talent while minimizing legal risks.

Staying Current with Minnesota's Evolving Human Rights Act (MHRA)

As an employer in Minnesota, it's crucial to stay up-to-date with the latest changes to the Minnesota Human Rights Act (MHRA), which can significantly impact your organization's employee leave policies and practices. Recent amendments to the MHRA have expanded protections for employees and increased potential liability for employers who fail to comply with these evolving regulations.

Increased Potential Damages

One of the most notable changes to the MHRA is the significant increase in employer liability exposure. Under the amended law, employees who successfully bring claims of discrimination, harassment, or retaliation may be entitled to substantially higher damages than before. This heightened financial risk underscores the importance of ensuring your employee leave policies and practices are compliant with the MHRA and other relevant laws, such as the ESST and Paid Family and Medical Leave Act.

Expanded Definitions

The MHRA amendments have also broadened the definition of "disability" to include impairments that are episodic or in remission. This expansion means that more employees may be entitled to reasonable accommodations and protected leave under the law. As an employer, it's essential to review your policies and procedures to ensure they account for this broader definition and provide appropriate support for employees with disabilities, including those related to employee leave laws in Minnesota.

Procedural Changes

In addition to the substantive changes, the MHRA amendments have introduced procedural updates that employers should be aware of:

Extended limitations period: Employees now have more time to file a lawsuit after receiving a dismissal notice from the Minnesota Department of Human Rights (MDHR). This extension gives employees a longer window to pursue legal action, emphasizing the importance of maintaining thorough records and addressing complaints promptly.
One-year limit for MDHR determinations: The MDHR is now required to make a determination on a charge within one year of filing. This timeline ensures a more streamlined process and encourages employers to respond to charges in a timely manner.

To stay compliant with the evolving MHRA and effectively manage employee leave laws in Minnesota, consider the following best practices:

Review and update policies: Regularly review your employee handbook and leave policies to ensure they align with the latest MHRA requirements and other relevant laws, such as the ESST and Paid Family and Medical Leave Act.
Train managers and supervisors: Provide comprehensive training to your management team on the MHRA amendments, emphasizing the importance of preventing discrimination, harassment, and retaliation, and properly handling accommodation requests and leave administration.
Document thoroughly: Maintain detailed records of employee complaints, investigations, and resolutions, as well as leave requests and approvals. This documentation can be invaluable in defending against potential legal claims.

By staying informed about the evolving MHRA and proactively adapting your policies and practices, you can foster a compliant and inclusive workplace that supports your employees' rights and well-being.

Empowering Employees: Minnesota's Voting Leave Rights

In addition to the various employee leave laws in Minnesota, such as the ESST and the Paid Family and Medical Leave Act, the state also ensures that employees have the right to take time off work to vote without facing negative consequences. This voting leave entitlement is a crucial aspect of promoting civic engagement and protecting employees' democratic rights.

Under Minnesota law, employees are entitled to paid time off for voting, provided that the time falls within their scheduled work hours. Employers cannot require employees to use personal leave or vacation time to cast their ballots. Instead, they must allow employees to take the necessary time to vote without any loss of pay or benefits.

Employers have certain obligations and restrictions related to voting leave:

Reasonable time to vote: Employers must provide employees with sufficient time to vote, considering factors such as travel time and wait times at polling locations.
No interference: Employers cannot directly or indirectly refuse, limit, or interfere with an employee's right to take voting leave, including dictating the specific time an employee chooses to vote.
Coordination of absences: Employers can request that employees inform them of their planned voting absence and coordinate with colleagues to minimize workplace disruptions. However, they cannot deny or restrict voting leave based on these factors.

It's important to note that the voting leave entitlement applies to all state and federal elections, as well as regularly scheduled local elections. This broad coverage ensures that employees can participate in the democratic process at all levels of government without fear of reprisal or loss of income.

If an employer violates an employee's voting leave rights, the employee can file a complaint with the county attorney. Employers found guilty of violating the law may face misdemeanor charges, emphasizing the importance of complying with this essential employee protection.

By understanding and adhering to Minnesota's voting leave requirements, employers can foster a culture of civic engagement and support their employees' democratic rights. This commitment to empowering employees aligns with the broader goals of employee leave laws in Minnesota, which aim to create a more equitable and supportive workplace environment.

As you navigate the complex landscape of employee leave laws in Minnesota, it's essential to have a reliable partner by your side. At GoCo, we understand the challenges you face and are committed to simplifying HR, payroll, and benefits management for your business. Book a demo today and discover how our all-in-one HR software solution can help you stay compliant, streamline processes, and empower your employees.