Minnesota has enacted legislation (Senate Bill 3035) that will require employers to provide earned sick and safe time (ESST) to employees effective January 1, 2024.
What you need to know
- An employee is eligible for ESST if they work at least 80 hours in a year in Minnesota.
- Employees are entitled to begin accruing ESST on January 1, 2024, or their date of hire, whichever is later. An employee earns one hour of ESST for every 30 hours worked and can earn a maximum of 48 hours each year unless the employer agrees to a higher amount.
- Employees exempt from overtime should accrue based on the assumption they work 40 hours per week. If the employee’s normal work week consists of less than 40 hours, they should accrue based on the number of hours that comprise their normal work week.
- Employers must typically permit employees to carry over accrued but unused ESST into the following year. However, employers may cap total accrual at 80 hours.
- In lieu of allowing carryover into the following year, employers may choose to frontload ESST to employees at the start of the year that meets or exceeds the requirements below:
- 48 hours: If employer pays out accrued but unused time to an employee at the end of a year at the same hourly rate as the employee typically earns for employment; OR
- 80 hours: If employer does not pay out accrued but unused time to an employee at the end of a year at the same hourly rate (or greater) as the employee typically earns for employment.
- ESST must be paid at the same hourly rate as an employee earns when they are working.
- Employers are not required to pay employee for unused paid sick leave upon the employee’s termination, resignation, retirement, or other separation from employment.
- Wage statements must include the total number of ESST hours accrued and available for use as well as the amount of ESST hours used during the pay period.
- Employers that provide paid sick leave under a paid time off policy or other paid leave policy that may be used for the same purposes and under the same conditions as the law requires, and that meets or exceeds, and doesn’t otherwise conflict with, the minimum standards and requirements provided by the law aren’t required to provide additional paid sick leave.
Please note: Earned sick and safe time local ordinances already exist in the cities of Bloomington, Duluth, Minneapolis, and St. Paul, Minnesota. Employers are responsible for following the earned sick and safe time requirements most favorable to their employees.