Federal laws in the United States offer a solid base to protect employees, but each state and city has its own unique legal rules to follow.
Employment and labor laws in Minnesota strongly favor workers, aiming to protect them from unsafe conditions and unfair practices. In fact, Minnesota is so pro-worker that Nicole Blissenbach, the state’s Commissioner of Labor and Industry, proudly dubs it "the best state for workers and their families."
Employers who violate Minnesota’s labor and employment laws can face serious consequences, including hefty fines—and even business closure. So before establishing a presence or hiring in Minnesota, make sure you understand and strictly adhere to local regulations.
Want to take the guesswork out of complying with Minnesota's employment and labor laws? Say hello to Rippling’s Professional Employer Organization service, which handles local tax registration and management, empowering you to grow your business with confidence.
Employment vs. labor law: What’s the difference?
Employment and labor law, while often used interchangeably, have distinct legal meanings.
The key distinction lies in the parties involved: Employment law primarily deals with issues about the relationship between an employer and an individual, whereas labor law focuses on situations involving an employer and a collective group, such as a union.
Here's a quick overview of both terms:
- Employment law encompasses working hours, wages, overtime regulations, hiring procedures, and workplace discrimination.
- Labor law is a subset of employment law that specifically addresses matters like union membership, union dues, and the negotiation of collective bargaining agreements.
Wages and hours in Minnesota
The Minnesota Department of Labor and Industry sets the minimum wage in the state, but it has no maximum-hour work rules, except for minors. Employers have the discretion to determine their employees' work hours, and there are no specific limits on how much overtime an employee can work.
Here’s a closer look at Minnesota’s minimum wage, overtime pay, and pay transparency rules.
Minimum wage in Minnesota
The minimum wage rates for Minnesota employees are as follows:
- Large employers (those who generate business earnings of more than $500,000 per year) will pay a minimum wage of $10.59 per hour from January 1, 2023, increasing to $10.85 per hour on January 1, 2024.
- Small employers (those who generate business earnings of less than $500,000 per year) will pay $8.63 per hour starting January 1, 2023, and this rate will rise to $8.85 per hour on January 1, 2024.
- Both the 90-day training wage and the youth wage will be $8.63 per hour as of January 1, 2023, and increase to $8.85 per hour on January 1, 2024.
Minnesota's state minimum wage is higher than the federal minimum wage. This means that if an employee is covered by both state and federal minimum wage laws, they must be paid the higher state minimum wage rate.
Moreover, both St. Paul and Minneapolis have their own minimum wage ordinances, so employers in these cities may have to pay a higher rate than the state minimum wage.
It's worth mentioning that Rippling automatically detects minimum wage violations based on state regulations and where employees are located, which is especially useful in Minnesota where minimum wages are higher.
Overtime pay in Minnesota
According to the Minnesota Fair Labor Standards Act, employers must provide overtime compensation for any hours worked beyond 48 in a workweek unless the employee qualifies for exemption under Minnesota Statutes 177.23, subdivision 7. Overtime pay should amount to at least 1.5 times the employee's regular rate of pay.
Rippling's payroll software makes it easy to follow overtime pay laws in Minnesota. It automatically applies the correct pay rates whenever employees work enough hours to trigger overtime pay requirements.
Breaks and rest periods in Minnesota
Minnesota employees have certain rights when it comes to break times and rest periods.
- Restroom breaks: Employees must be given time to use the nearest restroom during every four consecutive hours of work.
- Meal breaks: Employees who work for eight or more consecutive hours are entitled to a meal break.
- Break duration: If a break is less than 20 minutes, it must be considered as hours worked and should be paid.
- Employer's discretion: Employers can determine the hours an employee works, including when to take meals or rest breaks.
- Unpaid breaks: For breaks to be unpaid, employees must be completely relieved of their duties for at least 20 minutes.
Leaves of absence in Minnesota
Leaves of absence refer to periods when employees are allowed to be away from work while still maintaining their job security. Following the federal Family and Medical Leave Act (FMLA), Minnesota employees can take a maximum of 12 weeks off within one year for reasons like:
- Serious health conditions
- Spending time with a new child
- Dealing with specific urgent situations
Employees can take this leave every year, provided they meet FMLA eligibility conditions.
Other types of leave in Minnesota are outlined below.
Minnesota Family and Medical Leave
- Employers with at least 21 employees must allow eligible employees to take up to 12 weeks off for pregnancy, childbirth, and bonding with a new child.
- This bonding time is available to both biological and adoptive parents but must be taken within 12 months of the child's birth or adoption.
- To be eligible, employees must have worked at least half-time for the employer for 12 months.
Military Family Leave in Minnesota
- All Minnesota employers must grant time off for family members on active military duty.
- This includes attending ceremonies like family send-off or homecoming (up to one day per year) and up to ten days off in case of injury or death.
Minnesota Small Necessities Law
- Employers with at least two employees provide up to 16 hours of unpaid leave for school-related activities for their child, especially if these events can't be rescheduled outside of work.
- Larger employers (20 or more employees) must offer up to 40 hours of paid leave for bone marrow donation.
Pregnancy disability leave in Minnesota
Minnesota doesn't have specific state laws exclusively covering pregnancy disability. However, employees who experience pregnancy-related conditions or complications may be protected under federal laws such as the FMLA and the Pregnancy Discrimination Act (PDA).
Paid sick leave in Minnesota
Effective January 1, 2024, Minnesota employers must offer paid Earned Sick and Safe Time (ESST). An employee can accumulate one hour of leave for every 30 hours worked, up to a maximum of 48 hours annually. ESST can be used for a range of reasons, including mental or physical illness, preventative care, domestic or sexual abuse, public emergencies, infectious diseases, and more.
Additionally, Minnesota's new paid leave law will go into effect on January 1, 2026. It ensures workers have the right to get paid when they can't work due to important health or caregiving reasons. It provides:
- Medical or sick leave benefits to help workers when they have serious health issues, including pregnancy
- Caregiving leave to let workers take time off to care for a loved one who has a serious health problem
- Parental leave and pregnancy accommodations to give workers time to connect with a new child they've welcomed into their family
- Safety leave for when workers or their loved ones are dealing with sexual or domestic violence
- Deployment-related leave to cope with the challenges of a loved one's military deployment
To qualify, workers need to have earned at least 5.3 percent of the state's average yearly wage during a specific 12-month period before starting their leave. For instance, based on the current state average wage, they'd need to have earned about $3,500 during that time to be eligible.
Further, the law divides the benefits into two groups:
- Medical leave, which includes pregnancy and recovery from childbirth
- Other leave types, such as parental leave, safety leave, caregiving leave, and deployment-related leave
In each of these categories, workers can take up to 12 weeks of leave every benefit year. If they need leave from both categories, they can take up to a total of 20 weeks in a benefit year.
With Rippling, you have the flexibility to customize and automate your leave policy, all while gaining complete visibility into how your employees are using it.
Workplace safety in Minnesota
Workplace safety is an employee right, and employers must provide a hazard-free workplace that doesn't pose a risk of death, injury, or illness to their employees.
In the United States, the Occupational Safety and Health Administration (OSHA) sets and enforces workplace safety standards, covering various aspects from handling hazardous materials to ergonomic conditions.
Minnesota also has its own workplace safety program, the Minnesota Occupational Safety and Health Administration (MNOSHA), approved by federal OSHA. It consists of two key components:
- MNOSHA Compliance enforces regulations through inspections, responds to complaints, investigates accidents, and provides education. MNOSHA can set safety standards as long as they match or exceed federal OSHA standards.
- MNOSHA Workplace Safety Consultation offers free assistance to employers. It helps prevent safety and health issues through on-site consultations, identifying hazards, making recommendations, and suggesting additional resources.
Additionally, as per the Minnesota Occupational Safety and Health Act, every Minnesota employer must have a written Safety, Health, Injury & Illness Prevention Plan (IIPP) manual, plan, and program in place to ensure workplace safety.
Rippling PEO offers a pay-as-you-go workers’ compensation plan, allowing businesses to manage their growth in Minnesota and across the US without the stress of upfront payments for the entire year.
Discrimination and harassment laws in Minnesota
Title VII of the Civil Rights Act of 1964 is a federal law that prohibits employment discrimination based on protected categories related to an employee's identity and family background.
Here are the categories protected under the Civil Rights Act of 1964:
- Race, ethnic background, national origin, or skin color
- Country of citizenship (except for certain government jobs)
- Sex, gender identity, gender expression, or sexual orientation
- Religion, sect, or lack of religious practice or belief
- Marital status, pregnancy, status as a parent, or potential to become a parent
- Age (if the employee is at least 40 years old)
- Temporary or permanent disability
The Minnesota Human Rights Act goes further by adding two more protected categories: those receiving public assistance and those participating in a human rights organization. The law also prohibits retaliation against employees who report discrimination, request disability accommodations, associate with protected group members, or participate in investigations related to workplace discrimination or human rights violations.
Whenever individuals are treated unfairly or denied their rightful privileges based on these characteristics, it's considered discrimination.
Workplace harassment is also considered a form of discrimination. For instance, when an employee faces constant derogatory jokes, racial slurs, or personal insults because of their race, it's seen as both harassment and discrimination, making it illegal.
Minnesota doesn't mandate specific sexual harassment training. However, if your business operates nationally, we'd recommend checking the requirements in other states as a precaution. If you need to provide sexual harassment or anti-harassment training, consider using Rippling's Learning Management System, which offers courses compliant with state requirements based on employees' locations.
Lastly, know that employers are held responsible for their employees' actions and words. As such, addressing workplace discrimination and harassment is of paramount importance, as violations can lead to substantial penalties and fines.
Unions in Minnesota
A union is a coalition of workers who come together to negotiate collective agreements related to their jobs. This includes various aspects of employment, such as wages, working conditions, time off, and benefits. Unions typically strive to enhance working conditions and secure more favorable terms for their members.
Employers must recognize that employees possess the right to join or support a union without fearing repercussions like job loss or retaliation.
In addition to Minnesota's Labor Relations Act (MLRA), which contains provisions safeguarding unions at private companies and overseeing their activities, state employees possess several key rights under the federal National Labor Relations Act (NLRA). This includes the ability to:
- Organize or join a union
- Discuss employment terms with colleagues
- Select representatives for collective bargaining
- Raise concerns about working conditions through complaints
- Engage in strikes and picketing under specific circumstances
- Opt out of joining a union if they so choose
Minnesota does not have a "right-to-work" law in place. This means that in workplaces with unions, employees usually have to either join the union or pay "fair share" fees, which are similar to union dues.
Employers need to be aware of these rules to create a workplace that follows state and federal laws. This will ultimately promote better relations between them and their employees.
FAQs about Minnesota labor and employment laws
Are independent contractors covered under Minnesota employment laws?
The rules vary based on the law, but generally, Minnesota employment laws only apply to employees, not contractors. Consider using our analyzer tool to properly classify your workers.
Does at-will employment exist in Minnesota?
Yes, Minnesota is an employment "at-will" state. An employee can choose to leave their job for any reason, and an employer can decide to let go of an employee for any (lawful) reason.
What privacy rights do employees have in Minnesota?
Despite other states having strict privacy regulations and rules, Minnesota has very few restrictions under both state and federal law. However, employers in Minnesota must let employees know if they might search their lockers, desks, or offices by either including it in an employee handbook or putting up a policy notice.
Does Minnesota have pay transparency laws?
In Minnesota, employers aren't compelled to mention the salary and benefits in job ads—but the state does have the Wage Disclosure Protection Act. This law prohibits Minnesota employers from telling employees they can't talk about their own pay.
Are background checks legal in Minnesota?
It's legal to conduct background checks, but the Minnesota Department of Human Rights also enforces "ban the box" for private employers aimed at reducing discrimination against people with criminal records. The law states that employers must first assess a job applicant's skills and qualifications before asking about their criminal history. However, after making a job offer, they can request the applicant to undergo drug and alcohol testing.
What are the child labor laws in Minnesota?
No one below 14 years of age can be employed in Minnesota. Federal regulations state children aged 14 and 15:
- Can’t work before 7 a.m. and after 9 p.m.
- Shouldn't exceed 40 hours of work per week
- Shouldn't work more than eight hours in a single day
Once they reach age 16, they shouldn't work before 5 a.m. and past 11 p.m. on school days.
How long is the pay period in Minnesota?
In Minnesota, employers must pay all earned wages on a predetermined payday, at least once in a 31-day period. This includes salary, earnings, gratuities, and commissions paid at least every three months, with wages earned on the workday.
Are whistleblowers protected in Minnesota?
Yes. The Minnesota False Claims Act protects whistleblowers from facing problems at work for reporting employer abuse. This protection means that if someone blows the whistle and faces retaliation, they can expect to:
- Get their job back with the same seniority they had before the retaliation
- Receive double the back pay they lost, along with interest
- Be compensated for any extra losses suffered because of the retaliation
Is workers’ compensation coverage required in Minnesota?
Under the Minnesota Workers' Compensation Law, all employers must buy workers' compensation insurance or be self-insured.
Are there required healthcare benefits in Minnesota?
Minnesota follows the federal Affordable Care Act (ACA), under which all businesses with 50 or more employees must provide group health insurance to full-time workers. Companies with fewer than 50 employees aren’t required to offer insurance—though providing health coverage might make them eligible for tax credits if they meet the required criteria.
Are Minnesota employers required to provide bereavement leave?
No, Minnesota employers aren't required to provide employees with bereavement leave—or leave to attend funerals.
What employee protections are available in Minnesota if layoffs occur?
Employers who have 100 or more employees must inform the Minnesota Department of Employment and Economic Development at least 60 days before a large layoff or when they plan to close a plant, as required by the Worker Adjustment and Retraining Notification (WARN) Act. Additionally, Minnesota has its own state-level WARN Act that provides additional protections for employees in certain situations and may require employers to provide more extensive notice than the federal law.
Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.
