SF4862

Purpose

• To modify how a “seasonal employee” is defined under Minnesota’s Paid Leave Law, specifically for workers in the hospitality industry, and to adjust how benefits are determined for those workers.

Main Provisions

• Define seasonal employee (Section 1):

  • A seasonal employee is someone who is employed for no more than 150 to 180 days in any consecutive 52-week period, and works in hospitality for an employer that has average receipts in any six-month period not more than 33 percent of its receipts in the other six months.
  • “Hospitality” is defined using the existing definitions in Minnesota law (section 157.15, referenced subsections 4–9 and 11–14).
  • Employers must apply to the state department in a prescribed format and certify: 1) the employee will meet the 150–180 day limit, 2) the employee’s primary line of work is hospitality, 3) the employer meets the receipts threshold (not more than 33% in six months), 4) the employer has provided the required notice (under section 268B.26).
  • Employers must notify the department within five business days if a previously classified seasonal employee no longer meets these criteria.

• Changes to benefits eligibility (Section 2):

  • An applicant is not eligible for Paid Leave benefits or protected leave for any week in which they are a seasonal employee (as defined above).
  • If benefits are denied to someone who remains employed more than 150–180 days, that person’s benefits start only after the completion of the 150–180 day period (i.e., beginning the Sunday after the period ends).

Significant Changes to Existing Law

• Introduces a strict, time-based cap (150–180 days) for seasonal workers in hospitality to qualify as seasonal employees.
• Ties eligibility for paid leave benefits to this seasonal classification, potentially excluding many hospitality workers during weeks they are considered seasonal.
• Adds a formal certification and reporting requirement for employers, including employee notice obligations and a five‑business‑day notification window to the department if an employee’s seasonal status changes.
• Uses a specific revenue threshold (33% of six-month receipts) to determine eligibility of the employer and the classification of the employee as seasonal.

Practical Impact (What this means for workers and employers)

• Hospitality employers must assess and document whether workers meet the 150–180 day limit and the 33% receipts threshold, and must file certifications with the department.
• Workers who would otherwise qualify for paid leave may be deemed seasonal and temporarily ineligible for benefits during weeks they are classified as seasonal.
• If a worker continues past the 150–180 day window, their paid leave benefits would begin after that window ends.
• Employers must promptly notify the department if an employee’s seasonal status changes.

Relevant Terms seasonal employee; Paid Leave Law; Minnesota Statutes 268B; hospitality; receipts threshold; average receipts; six months; 33 percent; 150 days; 180 days; consecutive 52-week period; department; certification; notice; 268B.26; benefits; protected leave; denial of benefits; eligibility.