Intro to Minnesota Labor Laws

In May, Minnesota passed a new law, in line with recent trends, which requires all employers with 30 or more employees in the state to include pay information in job postings beginning in January 2025. As part of these requirements, pay information includes either a fixed rate or a “good faith estimate” pay range, as well as a general description of benefits and “other compensation” (health insurance, retirement plans, bonuses, and others). 

Employers should review job postings and other related templates and procedures accordingly to ensure compliance with this new law.

As previously reported, on January 1, 2024, Minnesota employers will be required to provide eligible employees with up to 48 hours of sick and safe time per year under the state’s Earned Sick and Safe Law (ESSL). The Minnesota Department of Labor and Industry (DLI) released an Earned Sick and Safe Time (ESST) sample notice, which must be given to employees on January 1, 2024 or their date of hire, whichever is later.

Employers must post the notice at each location where employees perform work; provide a paper or electronic copy of the notice to employees in English and an employee’s identified language; or prominently post the notice in a web-based platform through which an employee performs work. Additionally, the notice must be included in an employer’s existing employee handbook. Employers do not have to use the sample notice but must ensure any adapted notice includes all components of the ESST mandate.  

Employers should review their sick leave policies to comply with this state-level law and all applicable local laws.

On May 25, 2023, Governor Walz signed a state-wide bill that will offer eligible employees up to 20 weeks of paid family medical leave benefits per year. This paid family medical leave program will require all private and public employers, regardless of their size, to provide employees with leave, with paid benefits funded through employer and employee payroll tax contributions.

Employees will be entitled to job protection and continuation of health insurance coverage while on paid family medical leave. The paid leave benefits will be computed based on the state’s average weekly wage benefit amount and paid directly by the state (not the employer). Employers should stay tuned for more guidance and updates from the state about plan administration on this new program.

Minnesota’s Pay History Ban became effective on January 1, 2024. Minnesota employers are now barred from asking candidates for current or previous applicant's current wage, salary, benefits or other compensation during the hiring process. Employers should take immediate action to update and train hiring managers to ensure questions surrounding salary and pay are compliant with the new law.

On May 30, 2023, Governor Walz signed a bill legalizing cannabis for recreational use for adults over the age of 21 in the state of Minnesota. The law outlines reasons and cases for how and when employers may reasonably test or discipline employees for cannabis use. While personal use is not legal until August 1, 2023, several employment provisions in the bill take effect on July 1, 2023. Employers should continue to monitor updates and are encouraged to review their current policies and testing procedures in accordance with this law.

Minnesota will prohibit non-compete agreements and clauses in contracts and agreements for employees and independent contractors beginning July 1, 2023, with limited exceptions. There is no retroactive effect to prior non-competes that were signed prior to the date this law takes effect. Non-competes may be permitted in certain cases during the sale or a dissolution of a business, with special provisions related to geographical area and/or a reasonable period of time.

Employers should review their employment agreement and contract templates and address the enforceability of non-compete agreement for active employees with their employment counsel to ensure compliance with the new state requirements.