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Takeaways
- Minimum wage increases at the state, Minneapolis, and St. Paul levels will require multi-jurisdictional employers to reassess payroll practices.
- New rules on meal and rest breaks significantly expand employee protections and reduce employer flexibility.
- Paid Family and Medical Leave planning must begin now, with critical notice, premium, and plan-selection deadlines approaching in late 2025.
Minnesota saw several changes to labor and employment laws take effect in 2025, with additional changes anticipated for 2026.
Minnesota Minimum Wage Changes:
New State Minimum Wage – Minn. Stat § 177.24
- Effective January 1, 2025, Minnesota's state minimum wage increased to $11.13 per hour for all workers regardless of employer size.
City of Minneapolis, Minnesota Minimum Wage
- Effective January 1, 2026, the minimum wage in the Minneapolis city area will increase to $16.37 for any employee who performs at least two hours of work in a calendar week within the City of Minneapolis, regardless of employer size.
St. Paul, Minnesota Minimum Wage
- Effective January 1, 2026, the minimum wage rate in the St.
Paul city area will increase as follows:
- City of St. Paul and large business (101+ employees) – $16.37
- Small business (6-100 employees) – $16.37
- Micro businesses (5 employees or less) – $14.25
Changes to Employee Work Breaks – Minn. Stat. § 177.253; Minn. Stat. § 177.254
Effective January 1, 2026, Minnesota employers must allow:
- Each Minnesota employee a rest break of at least 15 minutes or enough time to utilize the nearest convenience restroom, whichever is longer, within each four consecutive hours of work. This is a change from "adequate time" to "utilize the restroom."
- Each Minnesota employee working six or more consecutive hours a meal break of at least 30 minutes. This is a change from "eight or more consecutive hours" and "sufficient time to each a meal."
Pay Transparency – Min. Stat. § 181.173
Effective January 1, 2025, Minnesota employers with more than 30 employees are required to disclose pay range and benefits in job postings, including the starting salary range, a general description of benefits, and other compensation (including health or retirement benefits). An employer that does not plan to offer a salary range must list a fixed pay rate.
Minnesota Earned Sick and Safe Time ("ESST") Changes:
- Effective January 1, 2025, if a Minnesota employer provides employees with paid time off that is more than the amount required under the ESST law for absences due to personal illness or injury, the additional paid time off must meet the same requirements as the ESST hours, other than the ESST accrual requirements.
- 2025 Special Session Changes:
- Employers are permitted to establish reasonable advance notice expectations when employees need unplanned ESST, replacing "as soon as practicable" language with "reasonable required." Minn. Stat. § 181.9447 (Subd. 2).Employers are able to require reasonable documentation from employees of the need for ESST when the employee uses leave for two consecutive scheduled workdays. This is a change from the previously three consecutive scheduled workdays. Minn. Stat. § 181.9447 (Subd. 3),
- Employees are expressly permitted to voluntarily seek or trade shifts with a replacement worker to cover ESST hours. Minn. Stat. § 181.9447 (Subd. 4).
- Effective January 1, 2026, Minnesota employers may advance ESST to an employee based on anticipated hours, but if the advanced amount is less than what the employee would have accrued based on actual hours worked, the employer must grant additional ESST to make up the difference.
Minnesota's Paid Family and Medical Leave Program – Minn. Stat. Chapter 268A
Effective January 1, 2026, the Minnesota Paid Leave Act ("MPL") will offer payments and job protections to people who need time away from work for their own health or to care for a family member. MPL covers all Minnesota employers (apart from federal government and tribal entities) and nearly all employees. Those employees who meet the requirements will be eligible to take up to 12 weeks of paid medical leave, 12 weeks of paid family leave, and those employees in need of both family and medical leave within a single benefit year may qualify for up to 20 weeks of paid leave with employees continuing to receive payment of between 55% and 90% of their regular wages (with a maximum weekly benefit set at the state average wage currently at $1,423 per week).
Ahead of the effective date, Minnesota employers are required to decide between state or private equivalent plans, apply for small employer assistance as necessary, and set up employee MPL accounts. By December 1, 2025, at the latest, Minnesota employers must communicate with employees, provide written notice of MPL rights, obtain signed acknowledgments of the notice, post required workplace posters, and include MPL details in updated handbooks. Additionally, employers need to prepare for upcoming premium payments (at a rate of 0.88 of the employee's wages shared equally by the employer and employee) due April 30, 2026 (which will be based on wage detail reports submitted by the employer from January 1, 2026, to March 31, 2026).
Minnesota Medical Cannabis Law – Minn. Stat. § 342.57
Effective May 24, 2025, Minnesota employers may not discriminate against a person in hiring, termination, or any term or condition of employment based on that employee's / candidate's: (1) enrollment in the state's cannabis registry program; (2) enrollment in a tribal medical cannabis program; or (30 a positive drug test for cannabis, unless using or impaired by medical cannabis at work, during working hours, or while operating the employer's machinery or vehicles, unless a failure to do so would violate federal or state law or regulations or cause an employer to lose a monetary or licensing-related benefit under federal law or regulations.
Amendments to the Minnesota Anti-Discrimination Ordinance
Effective August 1, 2025, the state of Minnesota expanded its Civil Rights Ordinance, making it unlawful to discriminate in employment based on justice-impacted status, housing status, height and weight, or any combination of other protected characteristics.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
