EMPLOYMENT LAW CHANGES EMPLOYERS NEED TO BE AWARE OF…
1. Minimum Wage Increase
- Federal $10.59
- Minnesota $11.41, 90-day training wage $9.31 an hour
- Work performed in the City of Minneapolis $16.37
- Work performed in the City of St. Paul $16.37 (for employers with 101 or more employees
https://www.dli.mn.gov/minwage
2. Mandatory Meal and Rest Breaks
Minnesota employers must provide:
- A 30-minute unpaid meal break for employees working six or more consecutive hours (down from 8 hours previously). If the meal time is 20 minutes or under the employee must be compensated for their break. In order for an employee to NOT be compensated for their breaktime, they must be completely relieved from their work duties.
- A 15-minute paid rest break (or enough time to use a restroom, whichever is longer) for every four consecutive hours worked. Employee must be allowed to take the 15-minute rest break, but is not required to.
Penalties: If these breaks are not provided, the employer must compensate the employee at their regular rate of pay plus an equal amount in liquidated damages.
2. Earned Sick and Safe Time (ESST) Updates
January 1, 2026, changes
– Employers may advance ESST hours based on anticipated work hours, but must reconcile if the employee earns more than advanced hours
3. Paid Family and Medical Leave (PFML)
Effective January 1, 2026, Minnesota’s Paid Leave program (also known as PFML) launches, offering:
- Up to 12 weeks of medical leave and up to 12 weeks of family leave; combined maximum of 20 weeks per benefit year.
- Benefits are paid by the state, with contributions via premiums—employers must pay at least 50%, and may deduct the remainder from employee pay (without dropping wages below minimum wage).
- Employers must post notice and inform employees of PFML availability by December 1, 2025.
- Payroll deductions begin on January 1, 2026, and the first premium payment is due April 30, 2026.
- Employers may opt for a private equivalent plan, but must still comply with reporting and notice rules.
- Pays between 55% and 90% of wages, capped at the state average weekly wage (currently about $1,372).
What Employers Should Do
- Update employee handbooks and policies—particularly around breaks, ESST, and leave.
- Ensure PFML notices are prominently posted and distributed by December 1, 2025.
- Prepare to handle payroll deductions, submit PFML premiums by April 30, 2026, and report appropriately.
- Train HR and management on eligibility, documentation, and scheduling rules.
- Monitor rulemaking updates—especially regarding break interpretation and PFML implementation.
In Summary
As of January 1, 2026, Minnesota brings sweeping reforms to the workplace—improving break standards, modernizing sick and safe time, and rolling out a paid leave benefit for medical and family needs. Employers must be proactive now to ensure smooth implementation and compliance.
With the year coming to an end, please remember to also confirm that your annual business registration has been filed with the Minnesota Secretary of State’s Office and that your annual minutes are up to date.
If you need assistance with compliance with any of the new laws or making sure your business is in compliance, please contact me at 612-217-4387.