We’ve already explored key state laws in Illinois. In this article, let’s shift our focus to recent developments in employment laws in Minnesota and discuss strategies for employers in Minnesota to stay informed about the ever-changing employment landscape.
9 Employment Laws in Minnesota Employers Need to Catch Up On
These are the recent updates and amendments that reflect Minnesota’s commitment to fostering fair, transparent, and inclusive working conditions and equitable workplaces. Here are 11 of Minnesota’s employment laws that employers must know:
1. Earned Sick and Safe Time (ESST)
The law on paid sick leave, effective on January 1, 2024, has some recent updates regarding eligibility, emphasizing that volunteer and on-call firefighters, ambulance attendants, elected officials, appointed government employees, farmer-employed individuals, and farm corporations who work less than 28 days in a year are not eligible.¹ Here are other notable updates for this mandate:
- Employers no longer need to document in pay stubs. Instead, they should provide access to an electronic system or another reasonable method.
- Time increments for ESST use were changed to not less than 15 minutes and not more than 4 work hours.
- ESST can now be used for bereavement leave.
- Employees are only required to provide documentation if their sick leave extends to 3 consecutive workdays.
- Employees experiencing domestic abuse, sexual assault, or stalking only need a written statement as documentation.
- If violated, employers need to pay employees the same amount of ESST not provided, along with an equal amount for liquidated damages. If the ESST is undetermined, the law states 48 hours must be paid along with an equal amount.
Read more: How HR Managers Can Stay Updated on Employment Laws
2. Pay History Ban
To combat unequal pay toward women, people of color, Indigenous groups, or people with disabilities, Minnesota implemented a ban on asking a candidate about their previous salaries. This law applies to private, public, and nonprofit organizations in Minnesota.²
The law encourages employers to value candidate credentials such as skills, education, training, certifications, licenses, and expertise. Employers can also assess labor market rates, internal salaries, and other recommendations. This ensures that every employee is given equal opportunity based on their qualifications and breaks the cycle of unjust compensation.
As for employees, they can still mention their previous salaries, especially if it will help them gain better offers. Furthermore, any employee can report to the Minnesota Department of Human Rights if an employer inquires about their past salaries.
3. Employee Misclassification
Misclassifying employees as independent contractors is a major offense in labor law. While the penalties are not as hefty as law violations like cybersecurity and security compliance, misclassifying employees can become tedious to employers and potentially damage a company’s reputation. In the event of misclassification, employers can be liable to:
- Back taxes like income, social security, and Medicare.
- Interests and penalties on unpaid taxes.
- A fixed penalty of 3 percent of the employee’s total salary during misclassification.
- Additional penalties for repeated violations.
Misclassifying employees can still be financially burdening, causing legal risks and reputational damage. According to Littler, employers may face penalties of $10,000 per misclassified employee.³
Read more: Leveraging Diversity Beyond Compliance: How Inclusive Hiring Drives Innovation
4. Drug and Alcohol Testing
Unlike before, when testing for drugs could be random, employers can now only test for drugs, alcohol, and cannabis for safety-sensitive positions like:
- Peace officers
- Firefighters
- Positions providing training, education, counseling, consultation, and medical assistance to patients who receive medical care services
- Positions requiring driver’s licenses
- Positions funded by a federal grant
Furthermore, employers can use oral fluid drug testing instead of laboratory testing. Employers should also provide reasonable suspicion before testing. This includes employees suspected to be under the influence of drugs, alcohol, or cannabis or workers who may have caused work-related accidents.⁴ In this case, employers may test workers for up to two years without prior notice.
On the other hand, employers may not require drug tests for job applicants unless required by state or federal law. Companies are also prohibited from rejecting an applicant due to positive cannabis testing, except for the critical positions mentioned above.
5. Nursing Mothers and Pregnancy Accommodations
This law helps protect expecting women or early mothers who need to care for their children.⁵ Here’s a list of accommodations and regulations for both nursing mothers and pregnant women:
Nursing Mothers
- Break time must be provided as reasonable breaks for lactating employees. This ensures they have enough time to attend to their children’s responsibilities in feeding and providing milk.
- Rest breaks should not affect salary and compensation.
- Employers should provide a safe and private space for lactation. These rooms should be clean and safe for mothers to express milk.
Pregnant Women
- Employers should provide reasonable accommodations to pregnant women, such as proper seating, frequent meal breaks, reduced heavy-lifting responsibilities, and adequate access to food and water.
- Employers don’t have to create new positions or transfer employees to accommodate pregnancy.
- Employers must not force pregnant employees to take mandatory leave.
- Employers must maintain health benefits such as group insurance or healthcare plans.
Furthermore, employers are not allowed to discharge, discipline, or discriminate against employees asserting their rights under this law. This ensures that lactating mothers and pregnant employees are provided the necessary accommodation they need during this period. Employers should also inform new hires about these protections and their right to take parental leave.
6. Pay Transparency in Job Posting
This law requires employers to include salary ranges in job postings in 2025. This includes both minimum and maximum annual or hourly compensations. This mandate aims to help employees gain better job opportunities based on the company’s evaluation using internal salary ranges, market demand, and employee qualifications.⁶
Aside from this, employers must also include a general description of all the benefits and compensation packages, such as healthcare benefits, retirement plans, employment perks, and stock options. If there are specific role benefits, these must be included as well.
If an employer can’t provide a salary range, they must still provide a fixed rate. Salary can’t be listed as negotiable. The goal is to provide a transparent job opportunity and ensure candidates clearly understand compensation before applying.
Read more: Leveraging Diversity Beyond Compliance: How Inclusive Hiring Drives Innovation
7. Minimum Wage Increase
Minimum wage laws have increased basic salary from $8.85 and $10.85 to $11.13 per hour for large corporations, small businesses, and youth workers (under 18 years old) to adjust for inflation, effective January 1, 2025.⁷ For the 90-day training, the wage rate is $8.85 per hour.
This applies to all workers, regardless of whether they’re working full-time or part-time. Wage should also be paid on top of tips and not count tips as part of hourly salary.
However, this doesn’t apply to Minneapolis and St. Paul, which have their own ordinances that may require higher pay rates. Minneapolis’s minimum wage is $15.97 for both large and small businesses.⁸ As for St. Paul, the rate ranges from $13.25 to $15.97, depending on the organization’s size.⁹
8. Minnesota Human Rights Act
The amendments for this act focus on clarity and enhancement of law enforcement. For example, the definition of “disability” now includes people with episodic impairment or in remission. This focuses on disabilities that limit activity, such as epilepsy, Crohn’s disease, asthma, or bipolar disorder. Unlike apparent disabilities, these diseases may be overlooked, especially if they’re inactive.
Also, “familial status” now includes individuals with custody or guardianship toward a child. It also includes caring for children with disabilities. This guarantees parents with specific life circumstances are also protected by the law. Another term, “discriminate,” now includes general harassment and not just sexual advances. These changes broaden the scope of the law and address different scenarios.
Read more: Stress in the Workplace: Addressing the Concerns of Gen Z & Millennials
9. Minnesota Consumer Data Privacy Act
As the comprehensive list of regulations increases, Minnesota has also dedicated its efforts to consumer protection and data privacy. This act applies to businesses in Minnesota or companies offering products and services to Minnesota residents.
It seeks the general protection of consumer privacy through data collection, storage, and use. It states that consumers have six “rights” they can exercise regarding their data. These are:
- Right to Know
- Right to Correct
- Right to Delete
- Right to Opt Out
- Right to Copy
- Right to Review Profiling
Employers must be transparent about this information and provide detailed notices regarding data use, retention, and consumer rights. Since this information is sensitive, employers must also gather consent. Lastly, the law protects people against discrimination and using consumer information that can harm individuals. In case of violation, employers can receive penalties of up to $7,500 per violation.
Read more: Smart Hiring: How to Use AI to Get the Best Candidate
Do you need to focus on compliance? Let us focus on finding employees!
With over 140 years of combined recruiting experience, we at Hughes Recruiting & Consulting dedicate our time to creating meaningful connections between employers and employees.
Running a business has many challenges, including complying with laws and regulations—from federal to state and local. We can help you.
References
- “NEW EARNED SICK AND SAFE TIME (ESST) LAW CHANGES” Minnesota Department of Labor and Industry, 2024, https://www.dli.mn.gov/sick-leave-changes
- “UNFAIR DISCRIMINATORY PRACTICES RELATING TO EMPLOYMENT OR UNFAIR EMPLOYMENT PRACTICE.” Minnesota Legislature, 2024, https://www.revisor.mn.gov/statutes/cite/363A.08#stat.363A.08.8
- R. Revnew, Thomas and Erickson, Kurt. “Effective July 1, Minnesota Employers Face Increased Scrutiny and Possible Liability for Using Independent Contractors Versus Employees.” Littler, 29 May 2024, https://www.littler.com/publication-press/publication/effective-july-1-minnesota-employers-face-increased-scrutiny-and
- “AUTHORIZED DRUG AND ALCOHOL TESTING.” Minnesota Legislature, 2024, https://www.revisor.mn.gov/statutes/cite/181.951
- “NURSING MOTHERS, LACTATING EMPLOYEES, AND PREGNANCY ACCOMMODATIONS.” Minnesota Legislature, 2024, https://www.revisor.mn.gov/statutes/cite/181.939
- “AUTHORIZED DRUG AND ALCOHOL TESTING.” Minnesota Legislature, 2024, https://www.revisor.mn.gov/statutes/cite/181.951
- “MINIMUM-WAGE RATE ADJUSTED FOR INFLATION AS OF JAN. 1, 2025.” Minnesota Department of Labor and Industry, 26 Aug. 2024,https://dli.mn.gov/news/minimum-wage-rate-adjusted-inflation-jan-1-2025
- “What is the Minneapolis Minimum Wage?” 2024, Minneapolis Minimum Wage, https://minimumwage.minneapolismn.gov/
- “Minimum Wage Increase Notification.” Saint Paul – Minimum Wage, 2024, https://www.stpaul.gov/departments/human-rights-equal-economic-opportunity/labor-standards-enforcement-and-education/minimum-wage
