Minnesota’s legislature had a busy year, with special attention paid to the state’s employment laws. All of the new laws below took effect on January 1, 2024, and apply to all employers, unless otherwise noted.

Salary History Inquiry Ban

Employers (and employment agencies) aren’t allowed to ask about or consider an applicant’s pay history, from any source. If an applicant volunteers this information without prompting, an employer can confirm and use it to support a higher wage or salary than it originally offered or intended to offer.

Action Item

Ensure that pay history questions are removed from applications and that those involved in the hiring process know not to ask, encourage, or prompt applicants to share this information.

Gender Identity Protection

The state has modernized its definition of gender identity as a protected class in employment, and while it was previously included within the definition of sexual orientation (dating back to 1993), it’s now recognized as its own category.

Action Item

If your equal employment opportunity or other anti-discrimination policies don’t yet include gender identity specifically, add it by January 1.

Earned Sick and Safe Time Reminder

As we reported back in June, employees will begin to accrue Earned Sick and Safe Time (ESST) on January 1, 2024. For more information, review ESST details on our previous article. The Minnesota Department of Labor and Industry also provides resources and FAQs for employers here. The required poster is available here.

Local Sick Leaves: Resistance is Futile

As you may be aware, four localities in Minnesota—Minneapolis, St. Paul, Duluth, and Bloomington—have had their own sick leave ordinances for several years. But as with any combination of local, state, or federal laws that cover the same topic, the most generous law (almost always) wins. Now that the state has its own safe and sick leave, employers in these four locations will need to coordinate their policies with the state requirements.

Of those four localities, Bloomington and St. Paul have recently amended their sick leave ordinances to better align with the new state law, and Minneapolis has indicated that it will follow suit and do so as well. Duluth, on the other hand, is taking steps to rescind its sick leave ordinance, paving the way for employers in that locality to only have to comply with the state’s ESST. We will continue to update you if and when important details change.

Action Item

Employers in these localities should review the new state law and update their policy as needed to ensure they’re providing the most generous benefits required by either local or state law.

Minimum Wage Increases

On January 1, 2024, the minimum wage in Minnesota will increase as follows.

Statewide

The state minimum wage for employers with annual gross revenue of $500,000 or more will increase to $10.85 per hour. For employers with less than $500,000 in annual gross revenue, the minimum wage will be $8.85 per hour.

Minneapolis

The minimum wage in Minneapolis for employers with 101 or more employees and franchises of any size will increase to $15.57 per hour. (The current minimum wage for employers with 100 or fewer employees remains in place until July 1, 2024.)

St. Paul

The minimum wage in St. Paul for employers with 10,001 or more employees will increase to $15.57 per hour. (The current minimum wage rates for all other employers remain in place until July 1, 2024.)

Let us exceed  your expectations. Contact our experts at (888) 388-1040 for questions on the Minnesota Employment law updates.