This post focuses on the new Minnesota statewide ESST (Earned Sick and Safe Time) regulations.
The Minnesota paid sick and safe time (ESST) law was effective on January 1, 2024.
Make sure your Employee Handbook is updated with the new Minnesota ESST requirements!
ESST (also referred to as earned sick and safe leave – ESSL) covers all employees (including part-time and temporary employees) performing work for their employer in Minnesota for at least 80 hours in a year (excluding independent contractors). That means if an employee is based in another state but works at least 80 hours in Minnesota, they are eligible for ESST (time worked in Minnesota will apply to ESST accrual).
Certain individuals employed by an air carrier as a flight deck or cabin crew member are not covered. The new law does not apply to building and construction industry employees who are represented by a building and construction trades labor organization if a valid waiver of these requirements is provided in a collective bargaining agreement.
The new law provides three different methods to either accrue or front load ESST. Employers always have the option of providing more generous leave options than the minimum required by law.
Employers that missed the January 1st deadline and do not already have paid leave must analyze these options to determine which provides the best path to providing ESST in 2024, and then immediately implement. Employers with a current paid leave plan must review plan details to make sure it meets the minimum requirements of the new law and make any policy adjustments to ensure ongoing compliance.
Employers are allowed to use different methods for different employee groups, for example you might have different methods for full-time v. part-time employees or different methods for exempt v. non-exempt employees.
ESST can be used for the following reasons:
The definition of “family member” is very broad and will include the following:
Minnesota ESST must be paid at the same hourly rate an employee earns when they are working. Employees are NOT required to find a replacement for their shift when using ESST. Employers must allow employees to use ESST in the smallest increment generally tracked by their payroll process.
Employers must include the total number of earned sick and safe time hours available for use, as well as the total number of earned sick and safe time hours used, on earnings statements provided to employees at the end of each pay period. Connect with your payroll administrator to make sure your paystubs/earning statements will include this required information.
Employers were required to provide employees with a notice by 1/1/2024 (or at the start of employment, whichever is later). The Minnesota Department of Labor and Industry has created a uniform employee notice, which is available as a free download. Additionally, remember to include a sick and safe time notice in your employee handbook.
If an employee leaves and is reinstated within 180 days, they have access to their ESST levels before separation. Finally, the law does not require ESST hours to accrue if an employee is not working (for example, the employee is on vacation or out sick).
Earned Sick and Safe Time ordinances currently exist in Minneapolis, St. Paul, and Bloomington (the Duluth ESST ordinance was rescinded in 2023). Employers must follow the most protective law that applies to your employees.
This is a brief synopsis of the paid sick and safe leave regulations. Stay tuned for updates and reach out for guidance to fully understand how this new law impacts your organization.
Human Resources thought leader, Stacy Johnston, provides innovative solutions with a mission to support organizations in understanding and engaging their biggest competitive advantage… their employees. Johnston is a licensed attorney and holds the SHRM-CP credentials.
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