by By the time the Minnesota state legislature completed its session on May 22, 2023, it had successfully passed significant new laws that affect every employer with one or more workers in the state. If you have employees in Minnesota or work with independent contractors in the state, it will be worthwhile to review these new laws. Below are key workplace-impacting laws, along with links to additional information on each law that the governor has now signed:
- State-wide Earned Sick and Safe Leave (part of the Omnibus jobs bill): The state-wide law is similar to existing city ordinances in Minneapolis, Duluth, St. Paul, and Bloomington providing leave but covers more types of employees and does not require that the worker be employed for 90 days before using accrued leave. Effective January 1, 2024, employers will be required provide one hour of leave accrual for every 30 hours of work performed in Minnesota. The law also sets out notice and handbook requirements. https://www.dli.mn.gov/sick-leave
- Minnesota Paid Family and Medical Leave: Effective in January 2026, the law creates a state-paid leave program that is similar in process to state unemployment compensation programs. Employees will be eligible for job-protected paid time off when a serious health condition prevents them from working or when they need time off to care for a family member. Certain personal safety leave is also covered. Employers pay premiums for the program and can pass some of the premium cost to employees via wage withholding. Employer obligations regarding reporting wage and related information to the state begin as early as mid-2024. https://mn.gov/deed/programs-services/paid-family/
- Ban on Non-Compete Agreements (part of the Omnibus jobs bill): Most non-compete agreements between employers and workers in the state signed on or after July 1, 2023 will be unenforceable. Covered workers include employees and independent contractors. Agreements signed before July 1, 2023, are enforceable if they meet the previous requirements for Minnesota non-compete agreements set out by case law. Non-solicitation and confidentiality non-disclosure agreements are not affected by the law change. The law also limits the choice of law provisions allowed in some employment agreements. Major employment law firms, both national and regional, have published detailed descriptions of the new law. Example: Dorsey & Whitney LLP https://www.dorsey.com/newsresources/publications/client-alerts/2023/5/minnesota-ban-most-noncompete-agreements
- Limitations on ‘Captive Audience Meetings’ (part of the Omnibus jobs bill): The provision prohibits employers from threatening or taking adverse action against an employee for refusing to attend mandatory meetings relating to unionization, political, or religious topics. The national employment law firm, Littler Mendelson, is one of the several firms providing details and insight: https://www.littler.com/publication-press/publication/big-changes-minnesotas-employment-laws-are-coming-soon
- Protections for Nursing and Pregnant Employees (part of the Omnibus jobs bill): Effective July 1, 2023, Minnesota employees who are pregnant or nursing have expanded rights, including some that go further than recently enacted federal protections. For example, Minnesota law, like current federal law, provided breaks for nursing mothers for up to twelve months after the child’s birth. New Minnesota law removes that time cap and protects breaks as long as the child is nursing. Previous state pregnancy accommodation laws only covered employers with 21 or more employees. The new state law covers employers with one or more employees. As of the date of publication, the state website still needed to be updated to include the changes in law. The Felhaber Larson firm is among the Minnesota law firms with blog posts explaining the changes: http://www.felhaber.com.
- State Laws Affecting Specific Industries: New laws were also passed seeking to protect or benefit workers in the following businesses:
- Nursing Home Workers
- Warehouse Distribution Workers
- Meat and Poultry Processing Workers
- Construction Workers
For descriptions of law changes affecting these businesses, see https://www.dli.mn.gov/news/new-workplace-protections-programs-make-minnesota-best-state-workers.
May 30, 2023 Update: The Minnesota Department of Human Rights has published its Civil Rights Newsletter describing the recent changes to the Human Rights Act, including the prohibition on making pay history inquiries of applicants. https://content.govdelivery.com/accounts/MNDHR/bulletins/35c15c1.
