Minnesota has enacted detailed new recordkeeping requirements for employers, effective July 1, 2019, and wage theft protections for employees, effective August 1, 2019.
Articles Discussing General Issues In Minnesota Labor & Employment Law.
Minnesota Wage Theft Bill with New Employer Requirements Takes Effect August 1
In one of the most significant pieces of legislation affecting employers in many years, the Minnesota Legislature passed, and Governor Walz signed, the Jobs and Economic Development Omnibus bill that includes new wage theft protections for employees and new requirements for employers. The wage theft bill is one of the few pieces of bipartisan employment legislation that survived the 2019 legislative session. The law constitutes a very significant change in wage payment requirements and enforcement. It includes increased civil enforcement and recordkeeping requirements for employers, as well as new criminal penalties for intentional wage theft. These changes will go into effect on August 1, 2019.
Non-Minneapolis Employers Must Comply With Minneapolis Paid Sick Leave Law, Appeals Court Rules
Minneapolis’ Sick and Safe Ordinance extends to any employee who performs at least 80 hours of work per benefit year in the City of Minneapolis, even if his or her employer is not located within the city’s limits, the Minnesota Court of Appeals has held. Minnesota Chamber of Commerce v. Minneapolis, No. A18-0771 (Apr. 29, 2019). This significant ruling stretches Minneapolis-imposed requirements to non-Minneapolis employers, including — in some instances — requiring them to provide paid time off to their employees.
The Battle over the Minneapolis Sick and Safe Time Ordinance Continues: Court Holds the Law Applies to Employers Outside City Limits
On April 29, 2019, the Minnesota Court of Appeals overturned a state district court ruling and found that the Minneapolis Sick and Safe Time Ordinance (SST Ordinance) applies to employers outside the City limits. Previously, an injunction prohibited Minneapolis from enforcing the SST Ordinance against employers that did not have facilities within the City. Unless this decision is appealed to the Minnesota Supreme Court within 30 days—which is likely—the injunction will be dissolved and all employers will have to provide protected sick and safe time to employees who work at least 80 hours a year in the City, regardless of where the employer has facilities.
Minnesota Supreme Court Reverses Course: Employees May Assert Claims Both for Workers’ Compensation Benefits and for Disability Discrimination
The Minnesota Supreme Court in Daniel v. City of Minneapolis overruled itself, and 30 years of precedent, by holding the Minnesota Workers’ Compensation Act’s exclusivity provision does not bar disability discrimination claims for the same injury. A summary of the facts of the case follows, along with takeaways for employers.
Twins Once More: Saint Paul Passes $15 Minimum Wage Ordinance
On November 14, 2018, the Saint Paul City Council passed, and Mayor Melvin Carter signed into law, an ordinance that will raise the minimum wage in Saint Paul, Minnesota to $15 an hour starting as early as 2022 for large businesses operating within city limits. Long a priority of Mayor Carter, the increased Saint Paul minimum wage is now more closely aligned with that of its twin city, Minneapolis.
Triplets? Duluth Joins Twin Cities in Enacting Paid Sick and Safe Time Law
After considerable fact-finding efforts and numerous amendments, Duluth, Minnesota enacted Minnesota’s third paid sick and safe time law. Employers with Minnesota operations may not find three to be a magic number because—while parts of the new law are similar to those in Minneapolis and St. Paul—Duluth’s law breaks from the pack on various issues. Fortunately, because the law will not take effect until January 1, 2020, employers have more time to determine whether and how Duluth’s standards interact with existing policies and procedures. Below we answer the most common paid sick and safe time questions employers have when a new law is enacted, and note key differences between Duluth’s law and those already in effect in the Twin Cities.
Court Confirms Minneapolis Sick Leave Ordinance Not Enforceable Against Employers Based Outside of City
Last week, a court upheld the Minneapolis paid sick leave ordinance, but ruled that it is only enforceable against employers within the city’s limits. Minneapolis’s paid sick leave ordinance was passed in 2016 and was immediately challenged by the Minnesota Chamber of Commerce, which argued that the Minneapolis ordinance conflicts with state law and cannot be enforced against employers who do not have a physical presence in the city. That challenge resulted in a temporary injunction of the ordinance against employers located outside of the City of Minneapolis, but employers located within the city had to comply and offer the mandated paid sick leave. Now, the court has made the temporary injunction permanent. Employers should keep their eye on the status of the Minneapolis paid sick leave law to see if the City appeals the court’s decision or amends the ordinance in a way to cover more employees working in Minneapolis for employers that don’t have a physical presence in the city.
Consider This – Minnesota Court Of Appeals Again Requires Proof Of Additional Consideration For Non-Compete Agreements For Existing Employees
In October and November of this past year, we wrote about two Minnesota court decisions – Mid-America Business Systems v. Sanderson et al., Case No. 17-3876 (Dist. Minn. Oct. 6, 2017) and Safety Center, Inc. v. Stier, Case No. A17-0360 (Minn. App., Nov. 6, 2017) — that addressed the adequacy of consideration that is provided in exchange for entry into a non-compete agreement.
Minnesota Court Of Appeals Reaffirms That A Non-Compete Must Be Part Of A Job Offer To A Prospective Employee
Last month, this Blog highlighted a Minnesota decision evaluating the consideration required for non-compete agreements entered into after the commencement of employment. As that decision held, such agreements must be supported by valuable consideration over and above continued employment.
Alert for Minnesota State Government Contractors Filing Pay Equity Certifications
Most businesses entering into contracts in excess of $500,000 with the state of Minnesota are required to obtain an Equal Pay Certificate from the Minnesota Department of Human Rights (MDHR) as a condition of doing business with the state. The required elements of an application for certification are set forth in section 363A.44 of the Minnesota statutes.
Minneapolis and Saint Paul Sick and Safe Leave Ordinances Effective July 1
The Minneapolis Sick and Safe Leave Ordinance and the Saint Paul Earned Sick and Safe Time Ordinance will go into effect on July 1, 2017, as scheduled.
Preliminary Rules Released for Minneapolis and Saint Paul Sick Leave Ordinances
The City of Minneapolis and the City of Saint Paul have issued their preliminary rules regarding their respective safe and sick leave ordinances, which are scheduled to go into effect on July 1, 2017. These preliminary rules provide additional clarity and guidance on how the ordinances will be interpreted and applied.
Court Limits Reach of Minneapolis Mandatory Sick and Safe Leave Law
A Minnesota state district court recently issued a temporary injunction preventing Minneapolis from enforcing its Sick and Safe Time Ordinance (the “Ordinance”), which is scheduled to go into effect July 1, 2017, against any employer “resident outside the geographic boundaries” of Minneapolis until after a hearing on the merits or further court order. It is unclear from the court’s ruling which employers are “resident outside” of Minneapolis, although simply having an employee work some of his or her time within the city limits is likely not sufficient to subject an employer to the Ordinance. An appeal of the court’s order is expected, but for now, the other requirements of the Ordinance remain intact.
Minneapolis Amends Recently Enacted Paid Sick Leave Law
Minneapolis, Minnesota has amended the Minneapolis Sick and Safe Time Ordinance less than four months after it was enacted.1 The amendments come on the heels of neighboring St. Paul adopting its own paid sick leave law,2 and bring the Minneapolis Ordinance more in line with St. Paul’s requirements concerning frontloading, payment of employees when on leave, tracking accrual of available paid sick time, and recording required information.