Navigating the intricacies of employment regulations can be time-consuming, especially when you’re also trying to figure out what time it is in Minnesota. For those operating or working in the North Star State, knowing the current time is just the beginning. Understanding Minnesota’s Earned Sick and Safe Time (ESST) law is crucial for both employers and employees to ensure compliance and foster a healthy work environment.
Minnesota operates on Central Time (CT), which is 6 hours behind Coordinated Universal Time (UTC-6) during standard time and 5 hours behind during daylight saving time (UTC-5). But beyond keeping track of hours and minutes, businesses and workers in Minnesota need to be aware of the significant changes brought about by the ESST law, effective January 1, 2024. This law mandates paid leave for employees, impacting workplaces across the state. Let’s delve into the essential aspects of this legislation to ensure you’re on time and in compliance.
Key Facts About Minnesota’s ESST Law
To get you up to speed quickly, here are the fundamental points of the Minnesota Earned Sick and Safe Time law:
- Effective Date: January 1, 2024. This is a relatively recent change, so staying informed is timely and essential.
- Accrual Rate: Employers must provide at least one hour of paid ESST for every 30 hours worked by an employee in Minnesota.
- Annual Cap: Employees can accrue at least 48 hours of ESST per year.
- Employee Definition: An employee is defined as someone expected to work at least 80 hours a year in Minnesota, excluding independent contractors. This broad definition covers many part-time, seasonal, and temporary workers.
- Existing Leave Policies: If your company already offers paid time off (PTO) or sick leave, it might already satisfy the ESST requirements, partially or entirely. Review your current policies to see how they align.
- Local Ordinances: Cities like Bloomington, Minneapolis, and St. Paul have their own ESST ordinances that may differ from the state law. Employers must adhere to the requirements that are most beneficial to their employees.
- Enforcement: The Minnesota Department of Labor and Industry (DLI) is responsible for enforcing ESST. Employees can also pursue civil lawsuits for violations.
Basic Questions and Answers about Minnesota ESST
Let’s address some common questions to clarify the specifics of Minnesota’s ESST law:
When Did the ESST Law Start in Minnesota?
As mentioned, the law took effect on January 1, 2024. Make sure your workplace practices are updated to reflect this date.
What Exactly Does Minnesota’s ESST Law Entail?
Minnesota’s ESST law is designed to ensure that employees working within the state receive paid leave. This leave can be used for various reasons related to health and safety, providing a safety net for workers who need time off. It’s a state-wide standard, though as noted, some cities have their own ordinances that might offer more generous benefits.
What Are Acceptable Reasons for Using ESST?
Employees can utilize ESST for a range of needs, including:
- Personal or Family Health: For their own or a family member’s mental or physical illness, medical treatment, or preventive care.
- Domestic Abuse, Sexual Assault, or Stalking: Absence due to these issues affecting the employee or a family member.
- Bereavement: To arrange or attend funerals, memorials, or handle legal and financial matters following a family member’s death.
- Emergency Closures: When the workplace or a family member’s school or care facility is closed due to weather or public emergencies.
- Public Health Risks: When a health authority or professional determines that the employee or a family member poses a risk of infecting others with a communicable disease.
Who Qualifies as “Family Member” Under ESST?
The definition of “family member” is quite broad, encompassing:
- Children (including biological, adopted, foster, stepchildren, legal wards, and those in loco parentis).
- Spouse or registered domestic partner.
- Siblings (including stepsiblings and foster siblings).
- Parents (biological, adoptive, foster, stepparents, and those in loco parentis).
- Grandchildren and step-grandchildren.
- Grandparents and step-grandparents.
- Nieces and nephews.
- Aunts and uncles.
- In-laws (child-in-law, sibling-in-law).
- Family members of a spouse or domestic partner (as listed above).
- Any individual related by blood or considered equivalent to family.
- One designated individual annually.
This expansive definition ensures that employees can care for a wide network of individuals they consider family.
Employer Responsibilities Regarding Leave Policies
If an employer already has a PTO or paid leave policy, it can satisfy the ESST law if it meets or exceeds the state’s requirements. The policy doesn’t need to be specifically labeled “earned sick and safe time.” Employers are always free to offer more generous leave policies than the minimum required by law.
State vs. Local ESST Laws
It’s important to reiterate that local ordinances in Bloomington, Minneapolis, and St. Paul might have different requirements than the state law. Employers must comply with whichever set of regulations is more favorable to their employees. This might mean combining aspects of both state and local laws to ensure full compliance and employee benefit.
Understanding Employee Coverage
Who is NOT Covered by Minnesota ESST?
Certain categories of workers are exempt from Minnesota’s ESST law:
- Federal employees.
- Independent contractors.
- Volunteer and paid-on-call firefighters.
- Volunteer ambulance attendants and service personnel in paid on-call positions.
- Elected officials and appointed individuals filling elected office vacancies.
- Short-term farm laborers (28 days or less per year).
- Building and construction industry employees under specific collective bargaining agreements with valid waivers.
- Certain family caregivers who have waived their ESST rights.
Residency Requirements for ESST Eligibility
Employees don’t need to reside in Minnesota to be eligible for ESST. Hours worked within Minnesota are what count towards accrual. Conversely, employees based in Minnesota but working out-of-state are not covered by Minnesota’s ESST law for their out-of-state hours.
ESST and Emergency Responders/Elected Officials
Volunteer and paid-on-call emergency responders, as well as elected officials, are not mandated to receive ESST under the law.
Applicability to the Construction Industry
Yes, ESST applies to the building and construction industry, but there’s an exception. Requirements can be waived through collective bargaining agreements with construction trades labor organizations, provided the waiver specifically mentions the ESST law.
Waivers for Non-Construction Employers
No, the waiver provision is specifically for the building and construction industry and does not extend to other sectors, even if they are represented by a construction trades labor organization.
Accruing ESST Hours: Rules and Details
When Does ESST Accrual Begin?
Employees start accruing ESST from their very first day of employment. There’s no waiting period.
Accrual Before 80 Hours Worked?
Yes, accrual begins immediately upon starting work, not after working 80 hours.
What Does “Accrual” Mean?
Accrual is the process of accumulating ESST hours over time as an employee works. For every 30 hours worked, an employee earns one hour of ESST, up to at least 48 hours per year.
Examples:
- Someone working 30 hours a week for 28 weeks accrues 28 hours of ESST (840 hours worked / 30 = 28 hours ESST).
- Someone working 40 hours a week for 3 weeks accrues 4 hours of ESST (120 hours worked / 30 = 4 hours ESST).
Defining the “Year” for ESST Purposes
A “year” can be any consistent 12-month period defined by the employer and clearly communicated to employees. Common options include calendar year, tax year, fiscal year, or the employee’s anniversary year. Regardless of the year definition, all employees must start accruing by January 1, 2024, or have 48 hours front-loaded by that date.
Limits on ESST Accrual
Employers can cap annual accrual at 48 hours and total accrual (including carryover) at 80 hours. They can choose to set higher limits but not lower.
Example:
- If an employee has accrued 30 hours by year-end and the cap is 80, those 30 hours carry over. If they then accrue 48 more in the next year, they reach 78. They can accrue 2 more before hitting the 80-hour cap, after which they must use some hours to accrue more.
ESST Accrual for Salaried/Exempt Employees
Exempt employees are generally assumed to work 40 hours per week for ESST accrual unless there’s clear evidence their regular week is less.
Overtime and ESST Accrual
Yes, ESST accrues on all hours worked, including overtime, unless the employee is exempt from overtime pay.
Accrual During Paid Leave?
No, ESST hours do not need to accrue when an employee is not working, such as during vacation or sick leave.
Frequency of ESST Calculation
Employers can calculate and record ESST hours with the same payroll frequency they typically use (weekly, bi-weekly, monthly, etc.).
Partial ESST Hours
Employers don’t have to credit partial ESST hours. They can credit in 30-hour blocks (one ESST hour) or choose to credit partial hours, as long as the accrual rate is at least one hour per 30 hours worked.
Examples:
- An employee working 10 hours bi-weekly might accrue one hour of ESST every three pay periods, or accrue 0.33 hours bi-weekly.
- An employee working 75 hours bi-weekly could be credited 2.5 hours of ESST bi-weekly.
Accrual with Multiple Employers
Yes, ESST accrues separately at each job an employee holds.
On-Call Time and ESST Accrual
ESST must accrue for all “hours worked.” Whether on-call time counts as “hours worked” is fact-specific and depends on the restrictions on the employee’s freedom during on-call time. Payment for on-call time alone doesn’t automatically make it “hours worked.” Employers should seek legal counsel for clarity on this.
ESST Accrual for Work in Multiple States
ESST accrues for hours worked in Minnesota only, for employees expected to work at least 80 hours annually in Minnesota.
Carryover of Unused ESST
Yes, unused ESST hours must carry over to the next year, capped at 80 hours total accrual, unless the employer uses specific front-loading options.
Example:
- 30 unused ESST hours at year-end must carry over to the next year, allowing the employee to accrue up to 48 more in the second year.
Front-Loading vs. Accrual and Carryover
“Front-loading” is an alternative to accrual, where employers provide a lump sum of ESST at the start of each year, potentially simplifying record-keeping and eliminating carryover.
Options:
- Accrual and Carryover: Standard accrual (1 hour per 30 worked), up to 48 hours annually, carryover allowed, max 80 hours total accrual.
- Front-Loading with Payout and No Carryover: Provide at least 48 hours at the start of each year, pay out unused hours at year-end. No carryover.
- Front-Loading with No Payout and No Carryover: Provide at least 80 hours at the start of each year. No payout of unused hours, no carryover.
Example:
- An employer might front-load 48 hours initially and pay out unused hours yearly, or front-load 80 hours and not pay out unused time, simplifying administration and eliminating carryover tracking.
Front-Loading for Part-Time Employees
Yes, front-loading is permissible for both part-time and full-time employees, as long as the front-loaded amount meets the requirements (48 hours with payout or 80 hours without).
Differentiating Between Employee Types
Employers can differentiate between part-time and full-time employees regarding ESST policies, as long as all employees receive at least the minimum benefits required by law and the policies don’t discriminate based on protected characteristics.
Front-Loading Before Jan 1, 2024
If an employer’s accrual year started before January 1, 2024, leave time already provided can count towards front-loading obligations, provided the leave policy covers all ESST-eligible reasons as of January 1, 2024.
Example:
- A school district front-loading 80 hours of PTO at the start of a school year in September 2023 meets its January 1, 2024 obligation.
Counting Pre-Jan 1, 2024 Accrued Hours
Yes, for accrual systems, hours accrued before January 1, 2024, can count towards the 48-hour annual maximum. For front-loading, the full 48 or 80 hours must be provided at the start of the accrual year, regardless of whether it starts on January 1, 2024.
Prorating Front-Loaded ESST
No, the law doesn’t allow prorating front-loaded hours for partial-year or part-time employees. Employers must provide at least 48 hours annually or use the accrual system. However, new employees can start on accrual and switch to front-loading in the next accrual year.
Payout and Transfer of ESST Hours
Payout of Unused ESST Upon Termination
Employers are not required to pay out unused ESST when an employee leaves, but they may choose to do so. Accrued ESST remains if an employee transfers within the same employer.
Reinstatement of ESST Upon Rehire
If an employee returns to the same employer within 180 days, previously accrued ESST hours must be reinstated.
Reinstatement After Payout
If ESST was paid out upon termination, reinstatement isn’t required upon rehire within 180 days. However, if no payout occurred, reinstatement is mandatory.
ESST and Workplace Ownership Changes
In ownership changes, retained employees keep their accrued ESST. Employees terminated by the old owner but rehired by the new one within 30 days also retain their ESST.
ESST Transfer Between Divisions
No, ESST cannot be paid out and restarted when an employee moves to a different division within the same company. ESST hours remain with the employee.
Employee-to-Employee ESST Transfers
The law doesn’t prohibit policies allowing employees to donate ESST hours to coworkers.
Utilizing ESST Hours
When Can Employees Start Using ESST?
Employees can use ESST as soon as it is accrued. There is no waiting period after accrual to use the time.
Notice Requirements for ESST Use
For foreseeable ESST use, employers can require up to 7 days’ advance notice. For unforeseeable needs, notice should be given as soon as practical. Employers with notice policies must have them in writing and provide them to employees; otherwise, they cannot deny ESST use for lack of notice.
Examples:
- For a sudden illness, an employee doesn’t need to adhere to a 24-hour advance notice policy but should notify the employer as soon as possible.
- For a pre-scheduled appointment, failing to provide 7-day notice as per a written policy can lead to denial of ESST use.
Denying ESST Use for Lack of Notice
Yes, if an employer has a written notice policy (up to 7 days for foreseeable use) and has provided it to employees, they can deny ESST use if the policy is not followed for foreseeable absences.
Documentation Requirements for ESST Use
Employers can require reasonable documentation only for ESST use exceeding three consecutive scheduled workdays. If an employee can’t get documentation, a written statement from the employee confirming the qualifying reason for ESST is generally sufficient.
Example:
- For a four-day absence due to illness, documentation can be requested. If unavailable (e.g., no doctor visit), an employee’s written statement is acceptable.
Documentation After Calendar Days vs. Workdays
Documentation can be required after more than three consecutive scheduled workdays are missed, not just calendar days.
Explicit Request for “Sick and Safe Time”
No, employees don’t need to specifically ask for “sick and safe time.” Any communication indicating a need for time off for a qualifying reason should suffice.
Requiring Specific Details for ESST Use
No, employers cannot demand specific details about the reason for ESST use, including medical conditions. For absences over three workdays, reasonable documentation can be requested, but not detailed medical specifics.
Employee Responsibility to Find Shift Coverage
No, employers cannot require employees to find replacements as a condition of using ESST.
Minimum/Maximum ESST Usage Increments
Employees can use ESST in the same time increments they are paid, but employers are not obligated to grant leave in increments smaller than 15 minutes. Employers cannot mandate usage increments larger than four hours.
Examples:
- An employee paid in 30-minute increments can request ESST in 30-minute increments, but the employer isn’t required to grant increments under 15 minutes.
- For a two-hour appointment, an employer can’t force an employee to take a four-hour (half-day) leave if two hours is sufficient.
- For salaried employees, employers can require ESST use in up to four-hour (half-day) increments.
PTO Policies and ESST Compliance
If a PTO policy is as generous as ESST and covers all ESST-qualifying reasons, it meets ESST requirements, even if employees can choose to use PTO for vacation instead of sick time.
Using ESST with Other Protected Leave
Yes, ESST use can coincide with other protected leaves under state or federal laws. ESST law does not limit other employee protections.
Mandatory ESST Use
No, employees are not required to use ESST, but they may choose to do so for eligible reasons.
Impact of ESST Use on Attendance Policies
Employers cannot penalize employees under attendance policies or point systems specifically for using ESST.
ESST Use During Non-Work Hours
No, ESST is paid leave from scheduled work. If an employee is not scheduled to work, they cannot use ESST for that time.
Employer-Initiated Closures and ESST Use
ESST use for employer closures is limited to closures due to weather or declared public emergencies. Closures for other reasons do not necessitate ESST use under the law, though employer PTO policies might cover such situations.
Definition of Public Emergency for ESST
A public emergency is a declared emergency at the state level (Minnesota Statutes section 12.03) or a declared local emergency (Minnesota Statutes section 12.29).
ESST Use for Essential Personnel During Emergencies
During weather events or public emergencies, most employees can use ESST if the workplace closes. However, essential personnel required to work during such events (like emergency and corrections personnel, firefighters, peace officers, 911 dispatchers, correctional guards, and certain public employees with commercial driver’s licenses) cannot use ESST if their duties require them to work during such times, especially if they have been given notice of ineligibility. Minimum staffing requirements may also restrict ESST use during emergencies.
Employee Illness Logs and ESST
Yes, employer requests for information related to employee illness logs (as per health regulations) are still permissible and not restricted by ESST limitations on documentation requests.
ESST Pay Rates
Required Pay Rate for ESST
Employees using ESST must be paid at their base rate of pay. For hourly employees, it’s the regular hourly rate. For salaried employees, it’s their guaranteed salary rate. For employees paid solely by commission, piecework, or other non-hourly/salary basis, the rate must be at least the applicable minimum wage (local, state, or federal, whichever is highest).
Base rate excludes: commissions, shift differentials, overtime, extra pay for weekends/holidays, bonuses, and tips.
Wage Rate at Time of Accrual vs. Use
ESST is paid at the base rate applicable to the shift when the leave is taken, not when it was accrued.
Multiple Pay Rates
For employees with multiple hourly rates, ESST is paid at the rate they would have earned for the period they took leave.
Base Rate for Non-Hourly/Salary Pay
For commission, piecework, or other non-hourly/salary pay, the base rate is at least the highest applicable minimum wage.
Compensation for Missed Tips
No, employers are not required to compensate for missed gratuities while an employee is on ESST leave.
Overtime Pay for ESST Hours
No, employers are not required to pay overtime rates for ESST hours, even if the missed work would have resulted in overtime pay.
Fixed Stipends and ESST Pay
If an employee’s fixed compensation is not reduced for missed work, additional base rate payment for ESST-covered absences is not required.
Recordkeeping and Employee Notification
Employer Recordkeeping Responsibilities
Employers must provide employees with:
- The total ESST hours available for use.
- The total ESST hours used in that pay period.
This information must be provided each pay period, possibly on earnings statements or via electronic systems (online portals, timekeeping software), with computer access provided during work hours for electronic formats.
Required Employee Notices
Yes, employers must notify employees of their ESST rights, including:
- Entitlement to ESST.
- Accrual amount.
- Accrual year.
- Terms of ESST use.
- Any written notice policies for ESST use.
- Prohibition of retaliation for ESST requests or use.
- Right to file complaints or civil actions for ESST denial or retaliation.
Notices must be in English and the employee’s primary language. The DLI provides sample notices, but employers can create their own as long as all required information is included.
Methods of Providing ESST Notice
Notices must be provided effectively, at least as effectively as:
- Posting notices at all work locations.
- Providing paper or electronic copies to all employees.
- Posting on web-based or app-based work platforms.
Employee handbooks must also include ESST information.
Timing of ESST Notice
Notices must be given at the start of employment or by January 1, 2024 (the law’s effective date), whichever is later.
Other Employer Obligations
Staffing Agency Responsibilities
Unless contracted otherwise, staffing agencies are responsible for ESST obligations for temporary employees.
Confidentiality of Employee Medical Information
Yes, employers must keep health and safety information obtained due to ESST confidential, unless employee consent or legal requirement dictates disclosure. Medical records must be kept separate from personnel files.
Insurance Coverage During ESST Use
Employers must maintain group insurance coverage during ESST use as if the employee were not on leave, with the employee continuing to pay their share of premiums.
ESST Record Retention
Yes, employers must keep all ESST records for three years, readily available for DLI inspection within 72 hours.
Employee Remedies for ESST Violations
Employees can seek civil remedies for ESST violations, potentially recovering unpaid ESST, liquidated damages (equal to the unpaid amount), and in cases where exact hours are unclear, 48 hours per year of non-compliance plus liquidated damages.
Complaints Regarding ESST
Employee Options for ESST Violations or Retaliation
Employees can contact the Minnesota Department of Labor and Industry (DLI) to file a complaint or pursue a civil lawsuit.
Filing Complaints with DLI
Complaints can be submitted to DLI’s Labor Standards Division at 651-284-5075 or [email protected].
Anonymous Complaints
Anonymous complaints are possible, but providing contact information can aid DLI in follow-up. ESST requirements are statutory.
Understanding Minnesota’s Earned Sick and Safe Time law is not just about adhering to regulations; it’s about fostering a supportive and compliant workplace. Just as it’s important to know what time it is in Minnesota, it’s equally vital to be on time with your compliance responsibilities regarding ESST. By staying informed and implementing these guidelines, employers and employees in Minnesota can ensure they are both on the clock and on the right side of the law.
