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After two years of monumental changes to Minnesota's labor and employment law landscape, 2025 was calm by comparison. Nevertheless, there were several important legislative changes enacted in 2025 that will affect Minnesota employers and their employees.
The June 10, 2025 Special Legislative Session
Following a one-day special session of the Minnesota Legislature on June 10, 2025, Governor Tim Walz signed several pieces of legislation impacting employers within the state.
Rest and Meal Breaks
The Legislature amended Minn. Stat. §§ 177.253 and 177.254 in several important ways. First, effective January 1, 2026, an employer must provide an employee with a rest break of at least 15 minutes or enough time to use the nearest restroom—whichever is longer—for each consecutive four hour period the employee works 1. Second, and also effective January 1, 2026, an employer must provide an employee who works six consecutive hours with an unpaid meal break of at least 30 minutes 2. Third, if an employer fails to provide an employee with these required rest or meal breaks, the employer is liable to the employee for the withheld rest or meal time at the employee's regular rate of pay, plus an additional equal amount as liquidated damages. This penalty provision also takes effect on January 1, 2026.
Earned Sick and Safe Time
The Legislature also made relatively minor changes to Minnesota's Earned Sick and Safe Time Law ("ESST"; Minn. Stat. § 181.9447, subds. 2-4, and Minn. Stat. § 181.9448, subd.1(j)). With one exception noted below, these changes took effect on July 1, 2025.
First, an employer may require an employee who has an unforeseeable need for ESST leave to give notice of that need "as reasonably required by the employer" 3. Second, an employer may require an employee to provide reasonable documentation concerning the need for ESST leave when the employee uses leave for two consecutive scheduled workdays 4. Third, while an employer cannot require an employee to find a replacement worker to cover the hours the employee uses as ESST leave, the Legislature amended the ESST law to clarify that the employee can voluntarily trade or attempt to trade shifts with replacement workers to cover those hours. Fourth, and effective January 1, 2026, an employer may voluntarily advance ESST leave to an employee before that leave accrues and based on the employee's anticipated hours worked for the remaining portion of the accrual year. If the employee works more hours than expected in that portion of the accrual year, the employer must provide additional ESST to the employee to make up the difference.
Increased Unemployment Penalties
The Legislature increased the penalties for employers who make misrepresentations to Minnesota's Department of Employment and Economic Development ("DEED"), i.e., the agency that administers the state's unemployment insurance program. As of October 1, 2025, if an employer makes a false statement to DEED or knowingly fails to disclose a material fact in order to assist an applicant in fraudulently obtaining unemployment benefits, to prevent an applicant from receiving benefits (or to reduce the amount of benefits an applicant can recover), or to avoid the employer's tax obligations, the employer will be liable for a penalty of $500 or 100% of the amount tied to the violation, whichever is greater (increased from 50% of the amount tied to the violation).
Other Changes to Minnesota Employment Laws
Medical Cannabis Law
Minnesota's Medical Cannabis Law (Minn. Stat. § 342.57) prohibits an employer from discriminating against an employee or prospective employee on the basis of that person's enrollment in a cannabis registry program, and also generally prohibits an employer from taking adverse action against an employee for a positive drug test for cannabis or its metabolites. These prohibitions do not apply if an employer's compliance would violate state or federal law or cause the employer to lose a monetary or licensing-related benefit under federal law.
Effective May 24, 2025, this law was amended to expand and clarify its protections. Specifically: (a) those protections now apply to employees enrolled in a Tribal medical cannabis program; (b) an employer is now required to provide at least 14 days' notice to an employee before taking an adverse action against the employee because the employer's compliance with the law's provisions would violate state or federal law or cause the employer to lost a monetary or licensing-related benefit under federal law; (c) an employer is now prohibited from retaliating against an employee for asserting his or her rights, or pursuing his or her remedies, under Minn. Stat. § 342.57; (d) the civil penalty for violating Minn. Stat. § 342.57, subds. 3-5 has been increased from $100 to $1,000; and (d) an employee now has the option of seeking injunctive relief in response to a violation or anticipated violation of Minn. Stat. § 342.57, subds. 3-6a.
Paid Family and Medical Leave
Effective June 15, 2025, the Legislature made a minor change to the Paid Leave Law (Minn. Stat. § 268B.14, subd. 7). This amendment capped the annual payroll premium rate at 1.1% of taxable wages paid to each employee 5. The effective date of the paid leave law itself remains unchanged (i.e., January 1, 2026).
Footnotes
1 Prior to the amendment, employers were required to provide employees with "adequate time" to use the nearest restroom.
2 Prior to the amendment, employers were required to provide employees who worked eight consecutive hours with "sufficient time" to eat a meal.
3 Prior to the amendment, employees were required to provide employers with notice of their need for ESST leave "as soon as practicable" if the need was unforeseeable.
4 Prior to the amendment, employers could require such documentation when employees used leave for three consecutive scheduled work days.
5 Prior to the amendment, the premium rate was capped at 1.2% of taxable wages paid to each employee.
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