LOCAL MINIMUM WAGE INCREASES
On July 1, 2024, the following minimum hourly wages will take effect:
Minneapolis
The minimum wage will be $15.57 for employers of all sizes.
St. Paul
Employers with 1–5 employees: $12.25
Employers with 6–100 employees: $14
Employers with 101 or more employees: $15.57
EARNED SICK AND SAFE TIME UPDATES
Minnesota has made significant modifications to the Earned Sick and Safe Time (ESST) law, which applies to all employers. These changes took effect on May 25, 2024 (one day after the law passed), unless otherwise noted. We have covered many of the notable changes below, but you can find a complete summary from the Minnesota Department of Labor and Industry.
Definition of Employee
The definition of employee has been updated to be those anticipated to work at least 80 hours in a year in Minnesota (previously it was employees who performed 80 hours of work in a year in Minnesota).
Rate of Pay
The law clarifies that employers are required to pay employees for ESST at their base rate. For those with multiple hourly rates, it’s the rate they would have been paid during the time leave was taken. Those paid on commission or piecework must be paid a base rate that’s no less than the minimum wage.
An employee’s base rate doesn’t include commissions, bonuses, gratuities, shift differentials (that are in addition to an hourly rate), or premiums for working overtime or on a weekend, holiday, or scheduled day off.
Additional Leave Reason
Employees can now use ESST to make arrangements for or attend funeral services or memorials or handle financial or legal matters after a family member’s death.
Documentation
The law is now clear that employers can only require reasonable documentation when an employee uses ESST for more than three consecutive scheduled work days.
Additionally, the law has added that if an employee uses ESST for absences related to domestic abuse, sexual assault, or stalking, and they can’t get documentation in a reasonable time or without added expense, a written statement from the employee stating that they used ESST for this purpose will suffice.
Increment of Time for ESST Use
Employers must now allow employees to use ESST in the same increments of time that they’re paid (unless they’re paid in increments smaller than 15 minutes, in which case the employer can set the increment at 15 minutes).
Recordkeeping
Employers have more options for notifying employees of the amount of ESST they have used and have available to them each pay period. Specifically, employers no longer have to include employees’ ESST information on earnings statements, but can provide this information in any reasonable manner, such as through an electronic system that’s accessible to employees during work hours.
More Generous Sick and Safe Time Policies
If an employer provides paid leave beyond the statutory minimum and allows its use for personal illness or injury, the additional paid leave must meet the same requirements as ESST, except for those addressing accrual. This does not apply to short-term or long-term disability or other salary continuation benefits.
This provision takes effect on January 1, 2025.
Reinstatement of ESST
The law clarifies that for an employee who is separated and rehired within 180 days, previously accrued ESST must be reinstated unless it was paid out upon separation.
Action Item
Update your policy as needed to be compliant with the new changes.
JURY LEAVE
Employers must release employees from their regular work schedule to attend jury service and can’t require them to work an alternative shift on days they report to the courthouse. However, employees can voluntarily request an alternative schedule on jury service days.
PERSONNEL RECORDS
The Personnel Record Review and Access law has been updated so that some employee rights and notices that previously only applied when an employer had 20 or more employees now apply to employers of all sizes. See the laws pages to learn more about your obligations.