2024 and 2025 Minnesota Employment Law Updates including salary transparency, minnesota human rights act, and more.
Staying compliant with evolving employment laws is crucial for businesses of all sizes. As we move through 2024 and into 2025, Minnesota is introducing a host of updates and new regulations that will impact employers and employees alike. From expanded protections and rights to changes in workplace policies and compliance requirements, it’s more important than ever to stay informed. At Versique Executive, Professional, and Interim Recruiting, we are committed to understanding these changes and helping our clients navigate the complexities of employment law. Here’s a breakdown of the key updates every Minnesota employer needs to know.
Enhancements to Earned Sick and Safe Time (ESST)
- Effective January 1, 2024, Minnesota enacted a statewide sick and safe time leave law allowing employees to accrue at least one hour of sick and safe time for every 30 hours worked to be used for specific circumstances.
- Going into 2025, there are additional clarifications and enhancements related to the “base rate” description, additional reasons to use ESST, and changes to recordkeeping requirements.
- Stay informed: https://www.dli.mn.gov/sick-leave
Salary History Ban
- Effective January 1, 2024, Minnesota employers, employment agencies, and labor organizations are prohibited from asking or requiring applicants to disclose past salary history.
- Stay informed: https://mn.gov/mdhr/employers/pay-history/
Employee Misclassification Prohibitions
- Effective July 1, 2024, all employers risk significantly increased penalties for misclassifying employees as independent contractors.
- Employers should take time to carefully evaluate whether independent contractors are properly classified under state law.
- Stay informed: https://www.revenue.state.mn.us/independent-contractor-or-employee
Minnesota Human Rights Act
- Effective August 1, 2024, definitions of “disability,” family status” and “discrimination” have been updated within the Minnesota Human Right’s Act (MHRA).
- Employers should review and update their employee handbooks with updated definitions.
- Stay informed: https://www.revisor.mn.gov/laws/2024/0/Session+Law/Chapter/105/
Changes in Drug and Alcohol Testing for Employees and Applicants
- Effective August 1, 2024, Minnesota employers may choose to utilize “oral fluid testing” (i.e. salvia samples) as an alternative to lab-based testing for drugs, alcohol, and/or cannabis. The updated law contains strict requirements around oral fluid testing and confirmatory tests and re-tests following such a test.
- Reminder: Effective August 1, 2023, due to the legalization of marijuana and new legislation, employers cannot test job applicants for the presence of cannabis in pre-employment drug screenings, except for safety-sensitive positions, positions requiring a commercial driver’s license, other positions for which state or federal law requires testing of a job applicant.
- Stay informed: https://www.revisor.mn.gov/statutes/cite/181.951
Modifications to Pregnancy Accommodations
- Effective August 1, 2024, Minnesota’s pregnancy-accommodation law has also been updated to provide that during any leave provided as an accommodation for a pregnant employee’s disability, employers must maintain coverage under any group insurance policy, group subscriber contract or health care plan for the employee and any dependents, but the employee must continue to pay any employee share of the benefits’ cost.
- Reminder: The Pregnancy Accommodations law in MN went into effect July 1, 2023. Employers should be sure to review and update employee handbooks.
- Stay informed: https://www.revisor.mn.gov/statutes/cite/181.939
Salary Ranges in Job Postings
- Effective January 1, 2025, employers with 30 or more employees in Minnesota will be required to include a salary range — based on a good-faith estimate — in internal and external job postings, as well as a general description of all the benefits and other compensation.
- The salary range and benefit description must be included in job postings made indirectly through third parties.
- Employers who do not plan to offer a salary range must list a fixed rate of pay, and open-ended salary ranges are not permitted.
- Stay informed: https://www.revisor.mn.gov/statutes/cite/181.173
Minimum Wage Increase
- Effective January 1, 2025, Minnesota’s minimum wage rates for all employers, including large employers, small employers, youth, and J-1 visa wages for hotels, motels, and lodging establishments, will increase to $11.13 an hour.
- Stay informed: https://www.dli.mn.gov/minwage
Minnesota Paid Leave Law
- Coming January 1, 2026, Minnesota employers will be required to provide employees paid family and medical leave for up to 12 weeks related to leave for pregnancy, bonding, safety, family care, or a military member’s active-duty service or impending call to active duty in the United States armed forces, with a cap of no more than 20 weeks of total combined leave per benefit year.
- Stay informed: https://paidleave.mn.gov/
The legal landscape in Minnesota is shifting, and staying informed is essential for maintaining compliance and fostering a positive workplace environment. These 2025 Minnesota employment law updates highlight the need for employers to proactively review and revise policies, employee handbooks, and training programs to align with new requirements. Please note that this document is not meant to be an exhaustive list but instead a highlight of key legislative changes that may impact employers. This information is purely educational and should not be viewed as legal advice, as Versique would always recommend consulting with an attorney. If you have questions or need assistance with these changes, don’t hesitate to reach out—together, we can navigate the road ahead.
