2024 Minnesota Legislative Update for Employment Law

A number of changes to Minnesota employment laws were proposed and considered in the most recent legislative session. Below is a summary of the laws that have been changed to date. Additional changes are forthcoming, and we will continue to update you as the laws are passed.

Pay Ranges Required in Job Postings Starting January 1, 2025

Effective January 1, 2025, employers with 30 or more employees at one or more sites in Minnesota, and third parties that recruit for these employers, must include the following information in job postings:

• Minimum and maximum annual starting salary or hourly range of compensation.
  • The range may not be open ended.
  • If there is not a range, a fixed pay rate must be listed.
  • Must be based on a “good faith estimate.”
• General description of all benefits and other compensation, including health or retirement benefits.

These requirements apply to “any solicitation intended to recruit job applicants for a specific available position,” including electronic and hard copy postings, that include qualifications for desired applicants.

Pregnancy and Parenting Leaves: Employers Must Continue Benefits; Prenatal Appointments Do Not Count Toward 12-Week Leave

Employers are required to maintain coverage under group insurance policies, group subscriber contracts and, health plans for any employee and their dependents during the employee’s pregnancy or parenting leave “as if the employee was not on leave.” Employers may no longer shift the full cost of benefits to the employee during the employee’s pregnancy or parenting leave. The employee remains responsible for their share of the benefit costs.

The 12-week entitlement to pregnancy and parenting leave may not be reduced by any paid or unpaid leave the employees takes for prenatal care medical appointments.

Expansion of Minnesota Human Rights Act

The following protected classes received updated definitions, making it unlawful to discriminate on the following grounds:

• “Disability” previously included any person who (1) has a physical, sensory, or mental impairment which materially limits one or more major life activities; (2) has a record of such an impairment; or (3) is regarded as having such an impairment. It now also includes (4) any person who has an impairment that is episodic or in remission and would materially limit a major life activity when active.
• “Family Status” now means the condition of one or more minors having legal status or custody with (1) the minor’s parent(s) or the minor’s legal guardian(s) or (2) the designee of the parent(s) or guardian(s) with the written permission of the parent(s) or guardian(s). Familial status also means residing with and caring for one or more individuals who lack the ability to meet essential requirements for physical health, safety, or self-care because they are unable to receive and evaluate information or make or communicate decisions. The protections also apply to any person who is pregnant or is in the process of securing legal custody of an individual who has not attained the age of majority.
• “Discrimination” now includes harassment generally, not just sexual harassment.

Religious associations, corporations, and societies organized for private profit are not prohibited from taking action consistent with the protections and privileges in the U.S. and Minnesota Constitutions. However, the exemption does not extend to secular business activities unrelated to the religious or educational purposes for which the entity is organized.

Changes were also made relating to the procedure for handling complaints under the statute, statutes of limitation, and remedies.

Oral Fluid (Saliva) Now Permitted Form of Drug Testing

Oral fluid testing (analyzing a saliva sample) is now a permitted form of drug, alcohol, and cannabis testing as long as it complies with the procedures and requirements outlined in the statute. This includes using tests that detect drugs, alcohol, cannabis, or their metabolites in levels at or above the threshold detection levels. The testing must still be conducted pursuant to a written testing policy.

Oral fluid testing does not require the services of a testing laboratory, or the customary chain-of-custody procedures. Because it can be administered on-site and with near-immediate results, employers should consider adopting appropriate procedures for managing the tests.

Employees must be informed of the test result at the time of the test. If the test is positive, inconclusive, or invalid, the employee has 48 hours to request alternative testing through a laboratory at the employer’s expense. If the laboratory test indicates a positive result, the employee may request a confirmatory retest at the employee’s expense, similar to the existing process.

Ban on Non-Solicitation Covenants in New Service Contracts

Effective July 1, 2024, service providers (businesses or people who perform work for a customer) may not enter into a contract prohibiting their customers from soliciting or hiring their employees, independent contractors, or others who perform work for the service provider. This applies to any provision that restricts, restrains, or in any way prohibits the customer from directly or indirectly soliciting or hiring those individuals. Provisions that violate this restriction are void and unenforceable, and service providers are required to notify their employees of any covenants that violate this restriction.

The ban does not apply to workers who perform professional business consulting for computer software development and related services who seek employment through a service provider with the intent of being hired by the customer at a later date.

The ban only applies to agreements entered into on or after July 1, 2024. Agreements containing these provisions that were entered into before July 1, 2024, are not affected.

Wage Payments of Gratuities Paid through Electronic Payments

The Minnesota Fair Labor Standards Act was modified to clarify that gratuities received through credit card, debit, charge, or other electronic payment shall be credited to the pay period when it was received, and the “full amount of the gratuity indicated in the payment” must be distributed to the employee no later than the next scheduled pay period.

Earned Sick and Safe Time Modifications Presented to the Governor

Several significant changes are proposed to the Earned Sick and Safe Time law that went into effect on January 1, 2024. We will send an alert once they are signed into law.