Minnesota’s Earned Sick and Safe Time (ESST) law went into effect on January 1, 2024. The Minnesota Department of Labor and Industry recently proposed new rules regarding ESST that are intended to provide additional guidance to both employers and employees on how the ESST law is applied. The proposed rules are open for public comment through April 2, 2025. A notice of intent to adopt these rules or a notice of hearing will be published by November 25, 2025, by the Minnesota Department of Labor and Industry.
Here’s a breakdown of the key proposed changes and what they mean for both employees and employers.
Key Changes in the Proposed Rules
- Accrual Year Definition: If an employer does not specify an accrual year, it defaults to a calendar year. Employers must notify employees in writing of any changes to the accrual year before they take effect. This ensures that employees are aware of their rights and can plan accordingly.
- Location of Hours Worked: Employees accrue ESST based on where they work. If more than 50% of their work is in Minnesota, all hours count towards ESST. If 50% or less is in Minnesota, only those hours worked in the state count. This rule helps clarify how ESST is calculated for employees who work in multiple locations.
- Accrual and Use of Time: Employers must credit accrued ESST by the end of each pay period. Employees can use this time for any qualifying purpose, such as illness or safety needs, without being forced to do so by their employer. This rule emphasizes the employee’s right to decide when to use their accrued time.
- Misuse of ESST: The rules define what constitutes misuse of ESST, such as routinely taking time off before or after weekends or holidays. Employers can request documentation if they suspect misuse, but they cannot deny ESST based on past misuse or suspicion alone. This provision aims to prevent abuse while protecting employees’ rights.
- Rehire Policy: If an employee is rehired within 180 days, they are entitled to have up to 80 hours of previously accrued but unused ESST reinstated. This rule supports employees who return to work after a short break, ensuring they do not lose their accrued benefits.
Implications for Employees and Employers
- For Employees: These potential rules provide additional clarity and protection, ensuring that employees can accrue and use ESST without unnecessary barriers. The rules also protect against potential misuse accusations, allowing employees to use their time as needed for legitimate purposes.
- For Employers: When implemented, employers will need to be diligent in communicating any changes to ESST policies and ensure compliance with the new rules. This includes providing timely notices and accurately tracking employees’ work locations and hours to determine ESST accrual.
We’re Here to Help
As Minnesota businesses prepare for the changes ahead, Henson Efron attorneys will continue to monitor these developments and will be ready to provide the legal guidance needed to implement them. We encourage all employers to review these potential changes, submit comments to the Minnesota Department of Labor and Industry, and to reach out to Henson Efron with questions.
The purpose of this article is merely to provide general information and should not be construed as legal advice.