HF1325

This bill proposes modifications to Minnesota's earned sick and safe time (ESST) regulations by amending several sections of existing employment statutes. The key provisions include:

1. Penalty Waiver: Employers will not face monetary penalties for a first-time violation of ESST requirements until after January 1, 2026.

2. Definition & Payment of Earned Sick and Safe Time:

   • Employers with 25 or fewer employees must pay ESST at half the employee’s regular hourly rate.
   • Employers in their first 12 months of operation are not required to provide paid ESST.

3. Employee Eligibility: Certain categories of workers, including independent contractors, elected officials, farm laborers working less than 28 days per year, minors under 18, employees working fewer than 520 hours per year, and seasonal employees working less than 20 weeks, are excluded from ESST coverage.

4. Family Member Definition Expansion: The bill broadens the definition of "family member" to include additional relatives such as siblings of parents, in-laws, and designated individuals.

5. Accrual & Use of Earned Sick and Safe Time:

   • Employees earn one hour of ESST for every 40 (rather than 30) hours worked.
   • Employers must allow carryover of unused ESST but can cap accrual at 80 hours.
   • Employers can provide front-loaded ESST instead of a carryover, under specific conditions.
   • A 90-day waiting period for new employees can be imposed.
   • Small employers (≤25 employees) can pay ESST at half the hourly rate.

6. Notice & Documentation Requirements:

   • Employers may require a written policy for notice and documentation.
   • Notice requirements now specify that employees must provide at least two hours' notice before a shift if their absence is unforeseeable.
   • Documentation may include an employee’s written statement (without the need for notarization).

7. Employer Notice & Posting Requirements:

   • Employers must provide written notice of ESST rights in English and the employee’s primary language at hiring.
   • Acceptable notification methods include physical postings, electronic distribution, or app-based notices.
   • Employers providing handbooks must include ESST rights information.
   • The Department of Labor and Industry will prepare standardized employee notice forms in multiple languages.

Overall, these amendments adjust ESST requirements to reduce burdens on small employers, clarify accrual and usage rules, and enhance notice and documentation processes, while delaying penalties for initial noncompliance until 2026.