Minnesota’s New Paid Leave Laws: What We Know Today and What Remains Unclear

What We Know

1. Earned Sick and Safe Time (ESST)

• Effective Date: January 1, 2024
• Key Provisions:
  • Accrual: Employees earn one hour of sick and safe time for every 30 hours worked, up to 48 hours annually.
  • Eligibility: Employees working at least 80 hours per year in Minnesota qualify, including part-time, temporary, and seasonal workers. Independent contractors are excluded.
  • Permitted Uses:
    • Personal or family illness, injury, or preventative care.
    • Issues related to domestic abuse, stalking, or sexual assault.
    • School or workplace closures due to weather or public emergencies.
    • Quarantine for contagious illnesses as recommended by health officials.
  • Rollover: Unused ESST carries over annually, with a maximum accrual of 80 hours.

2. Paid Family and Medical Leave (PFML)

• Effective Date: January 1, 2026
• Key Provisions:
  • Leave Duration: Up to 20 weeks of paid leave annually. The maximum leave for a single qualifying event is 12 weeks.
  • Covered Reasons:
    • Employee’s serious health condition.
    • Care for a family member with a serious health condition.
    • Bonding with a new child (birth, adoption, or foster care).
    • Military-related leave.
    • Leave related to domestic abuse, sexual assault, or stalking.
  • Funding Contributions: Employee and employer payroll contributions begin in 2026.
  • Administration: The state manages the default PFML program. Employers can opt for a private plan that meets or exceeds state benefits.

What Remains Unclear

Despite the laws’ clear frameworks, certain implementation aspects require further clarification:

• ESST:
  • Documentation Requirements: The extent of proof required for sick leave, particularly for brief absences.
  • Accrual vs. Frontloading: How employers balance compliance risks with frontloading remains uncertain.
  • Integration with Existing Policies: Aligning current PTO or sick leave policies with ESST standards.
• PFML:
  • Contribution Rates: Final payroll contribution percentages impacting businesses are yet to be determined.
  • Private Plan Approval: The approval process for employers opting for private plans remains undefined.
  • Coordination with Federal and State Programs: Interaction with federal leave policies and employer short-term disability plans is still under discussion.

Next Steps for Employers

To prepare for these upcoming laws, Minnesota employers should:

• Review Policies: Ensure current sick and family leave policies align with ESST and PFML.
• Update Systems: Coordinate with payroll providers to track ESST accrual and prepare for PFML contributions.
• Train Managers: Educate supervisors on employee rights to avoid accidental violations.
• Communicate with Employees: Keep employees informed about policy changes and implementation timelines.
• Stay Updated: Monitor announcements from the Department of Labor and Industry for new guidelines.