Employer Alert: New Earned Sick and Safe Time Statute Goes into Effect January 1, 2024
This year, the Minnesota legislature passed new Earned Sick and Safe Time (“ESST”) laws. Effective January 1, 2024, Minnesota employers must provide paid leave to employees who work in the state. The law provides up to 48 hours of paid leave per year for covered employees and the time can be taken for various reasons, including when the employee is sick, to care for a sick family member, or seek assistance if they or a family member experienced domestic abuse.
Who is a covered employer?
Any individual or business with one or more employees in Minnesota.
Who is a covered employee?
An employee is eligible for ESST if they work 80 hours or more annually for an employer in Minnesota and are not an independent contractor. The law covers part-time and temporary employees, but excludes independent contractors and individuals employed by an air carrier as a flight deck or cabin crew member, provided certain requirements are met.
What are eligible reasons for using Earned Sick and Safe Time?
Employees may use ESST for any of the following reasons:
- The employee’s mental or physical illness, injury, or other health condition, need for medical diagnosis, care, or treatment of a mental or physical illness, injury or health condition, or preventive medical or health care;
- Care of a family member with a mental or physical illness, injury, or other health condition, medical or who needs medical diagnosis, care, or treatment of a mental or physical illness, injury, or other health condition, preventive medical or health care;
- Absence related to employee’s or family member’s need to seek medical attention related to physical or psychological injury or disability caused by domestic abuse, sexual assault, or stalking. This includes seeking relocation, taking steps to secure an existing home due to domestic abuse, seeking legal advice or taking legal action resulting from domestic abuse, sexual assault, or stalking, obtaining services from a victim services organization, and obtaining psychological or other counselling;
- Closure of the employee’s place of business due to weather or other public emergency or an employee’s need to care for a family member whose school or place of care has been closed due to weather or other public emergency;
- The employee’s inability to work or telework because the employer prohibits work because of health concerns related to the potential transmission of a communicable illness related to a public emergency, or employee is seeking or awaiting the results of a diagnostic test for, or a medical diagnosis of, a communicable disease or the employee’s employer has requested a test or diagnosis; and
- When it is determined by the health authorities having jurisdiction or by a health care professional that the presence of the employee or family member of the employee in the community would jeopardize the health of others because of the exposure of the employee or family member of the employee to a communicable disease, whether or not the employee or family member has actually contracted the communicable disease.
How do employees accrue Earned Sick and Safe Time?
Employees earn 1 hour of ESST for every 30 hours worked, up to a maximum of 48 hours in a given year. Employers may choose to provide more hours. Employees may carryover their unused, accrued ESST from one year to the next, subject to an 80-hour maximum cap (unless the employer agrees to a higher amount).
ESST hours are calculated based on the hours worked. Exempt employees are presumed to work 40 hours a week for the purposes of ESST accrual. The amounts accrued and available for use, in addition to the amounts used each pay period, must be listed on the employee’s earnings statement or paystub.
When can employees begin using Earned Sick and Safe Time?
An employee can begin using ESST as soon as it is accrued. There is no waiting period. This contrasts with the Bloomington, Duluth, Minneapolis, and St. Paul ordinances, which each allow for a 90-calendar day usage waiting period.
Are there alternatives to the accrual method?
Yes, in lieu of permitting the carryover of accrued but unused ESST, an employer can frontload ESST by either:
- Providing 48 hours of ESST to an employee, and it is made available for immediate use at the start of each year. Any unused ESST hours are paid out at the end of the accrual year at the employee’s hourly rate.
- Providing a minimum of 80 hours of ESST to an employee, and it is made available for immediate use at the start of each year. Any ESST hours the employee did not use are not paid out at the end of the accrual year.
How does frontloading impact the carryover of unused ESST?
Employers who use the frontloading approach are not required to allow employees to carry-over unused ESST at the end of the year.
Are there any notice requirements for employers?
Yes, employers will need to notify employees in writing, at the start of employment or on January 1, 2024, whichever is later, of their ESST rights. Minnesota’s Department of Labor provides a sample notice on their website that can be used by employers.
Are there any record-keeping requirements for employers?
Yes, at the end of each pay period, employers must provide each employee with an earning statement, either in writing or by electronic means, that includes, among other statutorily required content, the total number of ESST hours accrued and available for use, and the total number of ESST hours used during the pay period. Employers must retain records documenting hours worked by employees and hours of ESST taken by employees.
Employers cannot retaliate against employees
Employers may not discharge, discipline, penalize, interfere with, or otherwise retaliate against an employee for asserting ESST rights, for requesting ESST leave, or for pursuing associated remedies. Further, employers may not factor in any employee’s use of ESST into any attendance point system.
What should employers do to prepare?
Employers should review existing sick leave and paid time off policies and either implement new policies or revise existing policies to ensure compliance with the new ESST law. The same should be done for all related attendance, conduct, anti-retaliation, and discipline policies and practices. Legal consultation is advised for specific questions and scenarios, ensuring effective and compliant navigation through these transitions. In addition, legal counsel can assist in the review and revision of sick leave and paid time off policies.
Parker Daniels Kibort has one of the top labor and employment practices in the State of Minnesota. For more information on this topic or for help with related inquires, contact the Parker Daniels Kibort labor and employment team at 612.355.4100.
