Intro to Minnesota Labor Laws

The Minnesota Department of Labor and Industry (DLI) has finalized administrative rules clarifying implementation details for the state’s Earned Sick and Safe Time (ESST) law. Applicable to employers with workers anticipated to perform at least 80 hours of work in Minnesota per year, the rules provide key operational guidance without altering the underlying statute. Among other specifics, the new rules clarify that accrued leave must be credited and available for use no later than the regular payday for each pay period, outline procedures for changing designated accrual years, and explain how to calculate leave deductions for variable or indeterminate shifts. Additionally, the rules clarify when employers may request reasonable documentation—such as after two or more consecutive scheduled workdays or in clear instances of suspected misuse—and permit goal-based attendance incentives to be denied due to ESST use, provided other types of leave are treated the same. Minnesota employers should review their leave administration processes, attendance policies, and employee handbooks to ensure compliance with these updated guidelines.

Minnesota has updated its Earned Sick and Safe Time (ESST) and meal and break requirements for employers of all sizes. Key changes include the employer’s ability to request documentation after two consecutive missed workdays and the expansion of meal break requirements to include employees working six or more consecutive hours. Furthermore, rest breaks must now be at least 15 minutes or long enough to reach the nearest restroom, whichever is longer. Employers may now also advance ESST to employees based on their anticipated hours, provided they grant additional time if the employee's actual hours worked exceed those estimates.

Employers should review their Minnesota sick and break leave policies and train managers on these new employee protections.

Effective January 1, 2026, Minnesota has expanded its meal and rest break requirements for nonexempt employees. Employers are now required to provide a paid rest break of at least 15 minutes for every four consecutive hours worked. Additionally, an unpaid meal break of at least 30 minutes must be provided to employees working six or more consecutive hours. Failure to provide these mandated breaks will result in fines to cover the wages earned during the period of the missed break. Employers should update their policies and handbooks to reflect these changes, establish a written policy, communicate it to employees, and enforce it to ensure compliance.

Minnesota has launched a mandatory Secure Choice Savings Program(opens in a new tab), a state-administered retirement plan for private-sector employers who do not already offer a qualified retirement plan. Eligible employers are those with 5+ employees and in business for at least one year. Deadlines are staggered based on company size, beginning June 30, 2026, for employers with 100+ employees. Administration of the program is handled by the state, free for employers, and requires no contributions. Customers who operate in Minnesota and participate in Justworks’ 401k plans through Empower generally meet or exceed the state’s requirements and must certify their exemption(opens in a new tab) with the state.

Minnesota’s Paid Leave program, which was signed into law in 2023, will take effect on January 1, 2026. As implementation approaches, the state now requires employers to inform Minnesota workers about the program by December 1, 2025. Employers must display the official Paid Leave poster in the workplace, in English and in any other language spoken by five or more employees. You can download the poster here(opens in a new tab). 

In addition, employers must notify each employee individually about the new Paid Leave program in their primary language and obtain acknowledgment that they have received the information. This can be done by having employees sign a form or confirm in another documented way. A sample employee notice and acknowledgment form(opens in a new tab) is available to help meet this requirement. Employers can also have employees sign the acknowledgment form and upload it to your Document Center in Justworks to keep your records organized and compliant.

Minnesota has strengthened employment protections for medical cannabis patients. Employers must now provide a written notice at least 14 days before taking any adverse action against a patient, detailing the specific reason. The law also prohibits retaliation, increases the penalty for violations to $1,000, and extends protections to patients in recognized Tribal medical cannabis programs. Employers should revise and review drug testing policies and procedures to ensure compliance with these requirements.