Understanding Minnesota's Earned Sick and Safe Time Law: What Employers Need to Know

Minnesota's earned sick and safe time (ESST) law went into effect on January 1, 2024, and it’s a major update every employer in the state needs to understand. In plain terms? From sick days to school closures, employees face real-life disruptions. Minnesota’s earned sick and safe time law means you’re now legally responsible for helping them manage those moments, without risking your compliance. Whether you're running a small business or managing a large team, here’s what you need to know to stay compliant and support your workforce.

What Is Minnesota's Earned Sick and Safe Time Law?

The Earned Sick and Safe Time law applies to employers with workers who put in at least 80 hours per year in Minnesota. Those employees are entitled to paid time off for everything from a cold to a doctor’s visit to helping a family member in crisis. 

The law is part of Minnesota’s broader initiative to promote workplace health, economic security, and flexibility for families. It's separate from the Paid Family and Medical Leave (PFML) law, which takes effect in 2026.

The ESST law follows the lead of several local ordinances already in place in cities like Minneapolis, St. Paul, and Duluth. However, this new statewide law creates a consistent baseline of benefits across Minnesota, which is particularly important for businesses that operate in multiple cities.

2025 Updates to Minnesota Earned Sick and Safe Time (ESST) Law

As of January 1, 2025, Minnesota made several key updates to the ESST law to improve clarity and expand protections. Here’s what’s new:

1. Paid Leave Reclassification

Any paid leave—PTO, vacation, etc.—counts as ESST if it’s used for a qualifying reason.

2. Bereavement Leave Coverage

ESST can now be used for bereavement-related purposes, including making funeral arrangements, attending services, or managing financial/legal matters after a death in the family.

3. Time Increment Clarification

Employees can take time in increments consistent with how they’re paid. No need to allow less than 15 minutes or require more than four hours at a time. 

4. Reasonable Documentation

You can request reasonable documentation for absences lasting more than three scheduled workdays. That includes a doctor’s note or a written statement. 

5. Base Rate of Pay Defined

Employees must be paid their standard rate—whether that’s hourly, salaried, or commission-based.

6. Streamlined Notice Requirements

You no longer need to list ESST balances on each pay stub. Instead, provide the info at the end of each pay period through a reasonable system. 

Why This Law Matters to Employers

This law isn’t just about compliance—it’s about culture. Giving your employees the time to care for themselves or family members builds trust and improves retention.

But we get it: navigating new laws takes time. That’s why it's smart to align your policies now, before audits or penalties come into play.

How to Update Your Policy to Meet Minnesota ESST Requirements

Updating your policy doesn’t have to be complicated. Here’s where to start:

• Compare your current leave offerings to Minnesota ESST requirements. If your PTO already covers ESST-eligible reasons and meets accrual minimums, you may be in good shape.

• Revise your handbook to explain how Minnesota earned sick and safe time works and when employees can use it.

• Make your request process clear. Whether employees notify you in person or through software, document the steps.

Minnesota ESST Employer Responsibilities

Minnesota employers have several obligations to remain compliant:

1. Provide Notices

• Inform employees about their rights in writing at the start of employment. 

• Display a poster in a conspicuous location at the workplace or distribute it electronically if the workplace is remote. 

2. Track Accrual and Usage

• Maintain records of ESST accrued and used for each employee for at least three years. 

• Provide balances at the end of each pay period through a system (not necessarily on pay stubs). 

3. Protect Against Retaliation

• It is unlawful to discipline, discharge, or otherwise retaliate against an employee for using ESST or asserting their rights under the law. 

4. Sync With Local Ordinances

• Employers in cities like Minneapolis and St. Paul may already be complying with local sick and safe time ordinances. The state law sets a floor—not a ceiling—so local requirements may still apply if they are more generous.

Take a look at this checklist to make sure your ESST policy is compliant. 

Penalties for Noncompliance

Failure to comply with the ESST law can result in investigations, fines, and penalties. The Minnesota Department of Labor and Industry (DLI) has enforcement authority and can impose penalties for violations. Fines can range from hundreds of dollars to $10,000 per violation for repeated or willful violations. 

Penalties may include compensatory damages for the employee, administrative fines, and orders to cease noncompliant practices. Additionally, noncompliance could impact employee trust and public reputation.

Need Help Navigating ESST?

At KeyLin Advisors, we specialize in simplifying payroll and compliance for Minnesota businesses. Whether you're updating systems or still wrapping your head around the rules, we're here to guide you with clarity and confidence.

Let’s make compliance one less thing to worry about. Reach out today to get started.