Earned Sick and Safe Time
Effective January 1, 2024, Minnesota has a new law requiring paid sick and safe time off for almost all Minnesota employees. Our HR & Employment Law Practice Group has been helping organizations review and update their policies to ensure that they are in compliance with the new law. It is a complicated analysis, and almost every organization needs to update their policies and procedures, even if it is just to make sure they are tracking time correctly.
Because the law became effective January 1, it is important that employers update their policies now (if they have not already) to ensure compliance. Here are some key things to consider:
- The new paid sick and safe time law applies to all Minnesota employers, regardless of headcount size. In other words, there is no small-employer exemption.
- The paid sick and safe time law applies broadly to any employee who has performed at least 80 hours of work in Minnesota in a year, with only a couple of narrow exceptions.
- Accordingly, part-time, temporary, and other employees of a company are eligible for earned sick and safe time, as long as they have performed at least 80 hours of work in a year.
- It also means that the law will apply to out-of-state employers with employees performing their work in Minnesota.
- The accrued time can be used for a wide variety of reasons, including the following (among others):
- When an employee has an illness, injury, or other health condition, needs a diagnosis for such health-related matters, or needs to seek preventative care;
- When an employee must be absent from work to care for a family member (as that term is defined under the new law) who has a health condition, or who needs to seek diagnosis or preventative care for such condition;
- When an employee needs to take certain steps relating to domestic abuse, sexual assault, or stalking of the employee or their family member; and
- When an employee must be absent from work to care for a child staying home as a result of a school closure.
Policy changes are likely needed to address reasons for time off, requesting and reporting procedures, definitions of family members, etc.
Here are some other necessary changes and considerations:
- Employers must comply with certain recordkeeping requirements under the new law and include additional information on employee pay statements.
- Among other things, employers need to ensure that the following details are reflected on pay statements: (1) the employee’s total balance of accrued and available paid time off that can be used for the reasons covered under the new law; and (2) the amount of such paid time off used during the applicable pay period. See Minn. Stat. § 181.032.
- Many employers will need to make changes to payroll and time off procedures/systems to comply with this requirement.
- Employers must give notice of certain sick and safe time information to employees, including, among other things, a written notice of employee rights and remedies under the new law.
- This must also be incorporated into employee handbooks.
- There are different accrual options available to employers, each of which has pros and cons, such that one option may be strategically better based upon an employer’s specific circumstances and/or needs.
- Employers may elect to frontload sick and safe time at the start of the year, or allow employees to accrue it in increments each payroll period.
- Some employers have elected to utilize more than one accrual method under certain circumstances, which requires careful planning to ensure compliance.
- The decision may be complex, and there are a number of factors to consider such as potential payouts, carryover, and interaction/compliance with other HR and employment laws.
- The employer can choose the 12-month period and start and end dates for the tracking year.
Additional HR & Employment Law Changes
There have been many other recent legislative changes in HR and employment law in Minnesota. Some of these new laws are already in force, and others will be soon. Here are just a few of the more significant recent changes (click the links to learn more):
- The use of non-compete provisions in employment-related agreements is now prohibited (effective July 1, 2023).
- The new law that legalized the recreational use of Cannabis in Minnesota places certain limitations on workplace policies and drug testing practices (effective August 1, 2023).
- Paid Family and Medical Leave will be required for almost all Minnesota employees (effective January 1, 2026, with some actions required in 2024).
In addition, there have been a number of other legal changes that were added through various channels, such as adding gender identity as a new protected class, a ban on seeking pay history from job applicants, new mandatory language for employee handbooks regarding accommodations for pregnant and nursing employees, amendments to required handbook language regarding wage disclosure rights, and a ban on requiring employees to attend meetings regarding religious or political matters (this new law includes a notice requirement). The legislature also amended the Pregnancy and Parenting Leave Act so that it applies: (1) to all employers, not just companies with 21 or more employees; and (2) to all employees, not just those who have worked at least 12 months.
Next Steps
With all of the new laws and changes that have happened, every Minnesota employer will likely need to make updates and changes to their handbooks, policies, procedures, forms, etc., including:
- Drug testing policies will likely need an overhaul in light of the new Cannabis law.
- Policies that restrict the use of alcohol and unlawful drugs in the workplace are permitted, but they will need to be adjusted to ensure that such workplace provisions include Cannabis (which is no longer categorized as an “unlawful” substance under Minnesota law). Employers without such policies may want to consider implementing one if they would like to prohibit employees from using, possessing, or being impaired by Cannabis during work hours.
- Even though non-competes have been banned, there are steps organizations can take to fill that gap with non-solicitation and trade secret protections.
- Minnesota employers must decide how they are going to address, track, implement, and comply with the new Earned Sick and Safe Time and Paid Family and Medical Leave laws.
- Organizations are also adding and revising other policies such as work-from-home policies and AI policies.
Due to the many recent changes in Minnesota, employers would be well-advised to consult with their employment counsel to assist with reviewing and/or developing the relevant notices, policies, and procedures. FMJ’s HR & Employment Law Practice Group is available to help review and analyze your company’s current policies, draft new policies, create and implement strategies for the future, and train your staff on new policies related to sick and safe time. If you are interested in connecting with the team to discuss sick and safe time in Minnesota, or any other HR and Employment law matters, please contact Shannon McDonough, Natolie Hochhausen, or John Ella.
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