Still Have Questions About Minnesota's New Earned Sick and Safe Time Law?

As most employers know, Minnesota’s Earned Sick and Safe Time (ESST) law, signed last May by Gov. Tim Walz, went into effect on Jan. 1. If you still have questions about the law and what it means for your organization, you are not alone.

Does This Apply to Me and My Company?

The new law applies to any individual or business with one or more employees who work in Minnesota. There is no small employer exemption.

What Do I Need to Know About the ESST Law?

The new law requires employers to provide paid leave for sick and safe time to employees who work in the state. ESST usage includes but is not limited to:

• Mental or physical illness, treatment or preventive care of an employee or their family member;
• Absence due to domestic abuse, sexual assault, or stalking;
• Weather or public emergency closure of the workplace or a family member's school or care facility; and
• When determined by a health authority or health care professional that the employee or a family member is at risk of infecting others with a communicable disease.

Eligible employees accrue a minimum of one hour of ESST for every 30 hours worked up to a maximum of 48 hours per year. Employers need to define their “year” for purposes of the ESST law, i.e., calendar year, fiscal year, work anniversary date.

There are three different methods an employer can use to comply:

1. The straight accrual and carryover method by which an employee can earn a maximum of 48 hours per year and carry over unused ESST up to 80 hours. Once 80 hours is reached, accrual stops until some ESST is used.
2. Employers can frontload 48 hours of ESST and pay out any unused ESST at the end of the year, avoiding accrual calculations and carryover.
3. Another option is to frontload 80 hours of ESST, avoiding accrual calculations, carryover, and year-end payout.

Hybrids of these methods can also be used. And different methods can be used for different categories of employees. If an employer already has a paid leave policy (such as PTO, vacation, or sick time), they may already be in compliance with the law – or would be with minor modifications.

Unused ESST does not need to get paid out when an employment relationship ends. This will depend upon the employer’s policy. ESST balances and usage must appear on your earnings statements.

An employer, pursuant to a written policy, may require up to seven days' advance notice if the need to use ESST is foreseeable, or notice as soon as practicable if unforeseeable. Additionally, employers may require reasonable documentation regarding the use of ESST when ESST is used for more than three consecutive days.

While certain cities, including Bloomington, Duluth, Minneapolis, and St. Paul, have their own sick and safe time local ordinances, state law will control in nearly all circumstances as employers must follow the most protective and generous law that applies to their employees as of Jan. 1, 2024.

Who Is Eligible for ESST?

Employees, including temporary and part-time employees, who work in Minnesota at least 80 hours in a year are eligible for ESST. Independent contractors are not covered by the new law.

What Are the Other Requirements for Employers Under the ESST Law?

Employers are required under the statute to:

• Provide notice to all employees of their entitlement and rights to ESST as well as remedies available under the law;
• Include the same ESST information in employee handbooks; and
• Maintain the confidentiality of health and safety information about an employee or an employee’s family member obtained because of the ESST law.

The Department of Labor and Industry (DLI) is responsible for the enforcement of the ESST law. More details can be found on the DLI’s ESST fact sheet for employers.

We Can Help

For more information about the new law or its consequences for your business, contact one of Maslon’s Labor & Employment attorneys.