Minnesota Employment Law 2026

2.1 Wage and Hour Rights

Minnesota maintains comprehensive wage and hour protections under the Minnesota Fair Labor Standards Act, codified in Minnesota Statutes Chapter 177.

Minimum Wage Requirements

Current Minnesota Minimum Wage (2026):

According to Minnesota Department of Labor and Industry:

“Minnesota’s minimum-wage rate will be adjusted for inflation Jan. 1, 2026, to $11.41 an hour for all employers in the state. The 90-day training wage for workers under age 20 will increase to $9.31. These rates reflect a 2.5% increase.”

Source: Minnesota Department of Labor and Industry
Published: December 2025
Available at: https://www.dli.mn.gov/news/minimum-wage-rate-adjusted-inflation-jan-1-2026
Date verified: January 15, 2026

Statutory Authority: The minimum wage is established under Minnesota Statutes § 177.24, Subdivision 1.

According to Minnesota Statutes § 177.24, Subdivision 1(a):

“Every employer must pay each employee wages at a rate of at least” the amounts specified, which are adjusted annually for inflation.

Source: Minnesota Statutes § 177.24
Official text: https://www.revisor.mn.gov/statutes/cite/177.24
Last amended: 2024

2026 Minnesota Minimum Wage Rates:

Standard Rate: $11.41 per hour for all employers
Effective date: January 1, 2026
Statutory authority: Minnesota Statutes § 177.24

Training Wage: $9.31 per hour
Applies to: Workers under age 20 during first 90 consecutive days of employment
Effective date: January 1, 2026

Anti-Displacement Protection: Minnesota Statutes § 177.24, Subdivision 1(b) prohibits employers from taking “any action to displace an employee, including a partial displacement through a reduction in hours, wages, or employment benefits, in order to hire an employee at the wage authorized” under the training wage provision.

Annual Inflation Adjustments: Minnesota Statutes § 177.24, Subdivision 1(c) requires the Commissioner of Labor and Industry to annually adjust minimum wage rates for inflation.

The statute specifies: “No later than August 31 of each year, the commissioner shall determine the percentage increase in the rate of inflation, as measured by the implicit price deflator, national data for personal consumption expenditures as determined by the United States Department of Commerce, Bureau of Economic Analysis during the 12-month period immediately preceding that August.”

Minimum wage increases are capped at the lesser of:

• 5 percent, rounded to the nearest cent, or
• The percentage increase in inflation, rounded to the nearest cent

New rates take effect each January 1.

No Tip Credit Permitted: Minnesota law prohibits tip credits against minimum wage.

According to Minnesota Statutes § 177.24, Subdivision 2:

“No employer may directly or indirectly credit, apply, or utilize gratuities towards payment of the minimum wage set by this section or federal law.”

Source: Minnesota Statutes § 177.24, Subd. 2
Official text: https://www.revisor.mn.gov/statutes/cite/177.24

Minnesota law requires employers to pay tipped employees the full minimum wage. Employees retain all tips received.

Local Minimum Wage Ordinances:

Minneapolis Minimum Wage (2026): Minneapolis has enacted a higher minimum wage for work performed within city limits.

According to City of Minneapolis:

“On January 1, 2026, the minimum wage hourly rate will be $16.37” for all employers.

Source: City of Minneapolis, Minimum Wage
Available at: https://minimumwage.minneapolismn.gov/
Effective date: January 1, 2026
Verified: January 15, 2026

St. Paul Minimum Wage (2026): St. Paul has similarly enacted local minimum wage requirements.

According to City of St. Paul Ordinance Chapter 224:

“Effective January 1, 2026, the City’s minimum wage hourly rate will be:

• $16.37 for macro and large businesses (101+ employees)”

“Effective July 1, 2026, the minimum wage hourly rate will be:

• $16.37 for small businesses (6-100 employees)”

Source: City of St. Paul, Minimum Wage Ordinance
Citation: St. Paul Legislative Code Chapter 224
Available at: https://www.stpaul.gov/departments/human-rights-equal-economic-opportunity/labor-standards-enforcement-and-education/minimum-wage
Verified: January 15, 2026

Applicability: Local minimum wage ordinances apply to hours worked within city boundaries. Under Minnesota law, employers are required to comply with the law providing the highest wage rate applicable to the employee.

Interaction with Federal Minimum Wage: The federal minimum wage under the Fair Labor Standards Act is $7.25 per hour.

Source: Fair Labor Standards Act, 29 U.S.C. § 206(a)(1)
Official text: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section206

Because Minnesota’s state minimum wage exceeds the federal rate, Minnesota law requires employers to pay the higher state rate for employees covered by both state and federal law.

Overtime Requirements

Minnesota Overtime Law:

Minnesota requires overtime pay for hours worked beyond 48 hours in a workweek.

According to Minnesota Statutes § 177.25, Subdivision 1:

“No employer may employ an employee for a workweek longer than 48 hours, unless the employee receives compensation for employment in excess of 48 hours in a workweek at a rate of at least 1-1/2 times the regular rate at which the employee is employed.”

Source: Minnesota Statutes § 177.25
Official text: https://www.revisor.mn.gov/statutes/cite/177.25
Verified: January 15, 2026

Federal Overtime Law:

The Fair Labor Standards Act requires overtime pay after 40 hours per workweek.

According to 29 U.S.C. § 207(a)(1):

“Except as otherwise provided in this section, no employer shall employ any of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, for a workweek longer than forty hours unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed.”

Source: Fair Labor Standards Act, 29 U.S.C. § 207(a)(1)
Official text: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section207
DOL guidance: https://www.dol.gov/agencies/whd/overtime

Application of Overtime Laws:

Employees covered by both Minnesota and federal overtime laws are entitled to overtime pay calculated under whichever law provides the greater benefit.

For most employees:

• Federal law (40-hour threshold) provides overtime pay first
• Minnesota law (48-hour threshold) may provide additional overtime compensation after 48 hours if the employee works that many hours

Overtime Rate Calculation: Minnesota and federal law require overtime pay at one and one-half times (1.5×) the employee’s regular rate of pay.

Regular rate of pay includes:

• Hourly wages
• Salary (divided by hours worked)
• Non-discretionary bonuses allocated to workweeks
• Shift differentials and premiums included in regular rate calculations

Overtime Exemptions:

Minnesota Statutes § 177.23 establishes categories of employees exempt from state overtime requirements, including:

• Executive, administrative, and professional employees meeting specific criteria
• Outside sales employees
• Certain computer professionals
• Agricultural employees under certain circumstances

Source: Minnesota Statutes § 177.23
Available at: https://www.revisor.mn.gov/statutes/cite/177.23

Federal law provides additional exemptions under 29 C.F.R. Part 541.

Source: Fair Labor Standards Act Exemptions, 29 C.F.R. § 541
Available at: https://www.ecfr.gov/current/title-29/subtitle-B/chapter-V/subchapter-A/part-541

Employers are required to properly classify employees as exempt or non-exempt based on job duties and compensation. Misclassification can result in liability for unpaid overtime wages.

Meal and Rest Break Requirements

Minnesota law requires employers to provide rest breaks and meal breaks to employees.

Effective January 1, 2026, significant changes took effect regarding break requirements.

Rest Break Requirements:

According to Minnesota Statutes § 177.253:

“An employer must permit each employee who is working for four consecutive hours or more to take a paid rest break of at least 15 minutes in duration, or sufficient time to use the nearest convenient restroom, whichever is longer, within each four consecutive hours of work.”

Source: Minnesota Statutes § 177.253
Effective date: January 1, 2026
Official text: https://www.revisor.mn.gov/statutes/cite/177.253
Verified: January 15, 2026

According to Minnesota Department of Labor and Industry, published January 2026:

“New requirements for Minnesota’s meal and rest breaks law take effect Jan. 1, 2026. The updated law clarifies that employers must generally allow employees to take:

• A paid rest break that is at least 15 minutes for every four consecutive hours worked.
• An unpaid meal break that is at least 30 minutes when working six or more consecutive hours.”

Source: Minnesota Department of Labor and Industry
Available at: https://www.dli.mn.gov/news/new-minimum-wage-rates-changes-meal-and-rest-break-laws-take-effect-jan-1-2026
Date: January 2026
Verified: January 15, 2026

Rest Break Details:

• Frequency: At least one rest break within each four consecutive hours worked
• Duration: Minimum 15 minutes, or time sufficient to use the nearest convenient restroom, whichever is longer
• Payment: Rest breaks are paid time under Minnesota law
• Timing: Minnesota law requires breaks to be provided within each four-hour period of work

Meal Break Requirements:

According to Minnesota Statutes § 177.254:

“An employer must permit each employee working six or more consecutive hours sufficient time to eat a meal. The time to eat a meal may be unpaid if the employee is completely relieved from duty for the meal period.”

Source: Minnesota Statutes § 177.254
Effective date: January 1, 2026
Official text: https://www.revisor.mn.gov/statutes/cite/177.254

Meal Break Details:

• Frequency: One meal break for each period of six or more consecutive hours worked
• Duration: Minimum 30 minutes
• Payment: May be unpaid if employee is completely relieved of duty
• Complete Relief from Duty: Minnesota law requires employee to be free to leave the worksite and engage in personal activities

If an employee is required to remain at the workplace or perform any duties during a meal break, Minnesota law requires the time to be compensated as paid work time.

Federal Law on Breaks:

Federal law does not require employers to provide meal or rest breaks.

According to U.S. Department of Labor, Wage and Hour Division:

“Federal law does not require lunch or coffee breaks. However, when employers do offer short breaks (usually lasting about 5 to 20 minutes), federal law considers the breaks as compensable work hours that would be included in the sum of hours worked during the work week and considered in determining if overtime was worked.”

Source: U.S. Department of Labor
Available at: https://www.dol.gov/general/topic/workhours/breaks
Verified: January 15, 2026

Where Minnesota law requires breaks, employers are required to comply with state requirements.

Final Paycheck Requirements

Minnesota law establishes specific timelines for payment of wages upon termination or resignation.

Termination by Employer:

According to Minnesota Statutes § 181.13:

“When any employee…is discharged from such employment, the wages or commissions earned and unpaid at the time of such discharge shall become immediately due and payable upon demand of the employee.”

Source: Minnesota Statutes § 181.13
Official text: https://www.revisor.mn.gov/statutes/cite/181.13

According to Minnesota Department of Labor and Industry:

“A terminated employee’s paycheck must be paid within 24 hours of the employee’s demand for wages.”

Source: Minnesota Department of Labor and Industry
Available at: https://www.dli.mn.gov/business/employment-practices/employment-termination
Verified: January 15, 2026

Voluntary Resignation:

According to Minnesota Statutes § 181.14:

“Whenever any such employee quits or resigns employment…all wages or commissions earned and unpaid at the time such employee quits shall become due and payable within the period set out in the next following standard payment date.”

Minnesota law requires this payment to occur no later than 20 days following separation.

Source: Minnesota Statutes § 181.14
Official text: https://www.revisor.mn.gov/statutes/cite/181.14

Extension for Employees with Fiduciary Responsibility:

Minnesota Statutes § 181.14 provides a 10-day extension when “the discharged or quitting employee was entrusted with money or property during employment.”

Payment of Accrued Vacation and Benefits:

Minnesota law does not require employers to provide paid vacation or paid time off. When employers do provide such benefits:

Vacation Pay: Company policy determines when vacation pay becomes due. If earned vacation time accrues and the employer’s policy does not contain a clear forfeiture provision, unused vacation time may be considered earned wages payable upon termination.

Sick Leave and Other Benefits: Sick leave and other discretionary benefits are payable per the employer’s written policy.

Disputes Over Final Pay: Employees who do not receive proper final payment may file wage claims with the Minnesota Department of Labor and Industry.

2.2 Earned Sick and Safe Time (ESST)

Minnesota requires employers to provide earned sick and safe time (ESST) to employees.

Statutory Authority: ESST requirements are codified in Minnesota Statutes §§ 181.9445 to 181.9448.

Source: Minnesota Statutes §§ 181.9445-181.9448
Available at: https://www.revisor.mn.gov/statutes/cite/181.9445
Effective date: January 1, 2024
Verified: January 15, 2026

Employer Coverage:

According to Minnesota Statutes § 181.9445, Subdivision 2:

“‘Employer’ means a person or entity that employs one or more employees and includes the state and its political subdivisions.”

Minnesota law requires all employers with one or more employees to provide ESST.

Source: Minnesota Statutes § 181.9445, Subd. 2

Employee Eligibility:

According to Minnesota Statutes § 181.9445, Subdivision 3:

“‘Employee’ means a person who is employed by an employer…and who the employer anticipates will work at least 80 hours for the employer in a year in Minnesota.”

Source: Minnesota Statutes § 181.9445, Subd. 3

Eligible employees include:

• Full-time employees
• Part-time employees
• Temporary employees
• Seasonal employees (except certain hospitality workers as defined in statute)

Independent contractors are not covered.

Accrual Requirements:

According to Minnesota Statutes § 181.9446, Subdivision 1:

“An employee accrues a minimum of one hour of earned sick and safe time for every 30 hours worked up to a maximum of 48 hours of earned sick and safe time in a year, unless the employer selects a higher limit.”

Source: Minnesota Statutes § 181.9446, Subd. 1
Available at: https://www.revisor.mn.gov/statutes/cite/181.9446

Accrual Details:

• Rate: 1 hour of ESST per 30 hours worked
• Annual maximum accrual: 48 hours (unless employer provides more)
• Accrual year: Determined by employer (calendar year, fiscal year, or other 12-month period)
• Carryover: Employees may carry over up to 80 hours of unused ESST to the following year

Payment Rate:

According to Minnesota Department of Labor and Industry:

“Sick and safe time must be paid at the same base rate an employee earns when they are working.”

Source: Minnesota Department of Labor and Industry
Available at: https://www.dli.mn.gov/sick-leave
Verified: January 15, 2026

Base Rate Definition: For hourly employees: the hourly rate the employee would have earned had they worked instead of taking ESST For salaried employees: the same rate guaranteed to the employee had they not taken ESST

Permitted Uses of ESST:

According to Minnesota Statutes § 181.9446, Subdivision 2, employees may use ESST for:

“(1) the employee’s mental or physical illness, injury, or other health condition; the employee’s need for medical diagnosis, care, or treatment of a mental or physical illness, injury, or other health condition; or the employee’s need for preventive medical or health care;

(2) a family member’s mental or physical illness, injury, or other health condition; a family member’s need for medical diagnosis, care, or treatment of a mental or physical illness, injury, or other health condition; or a family member’s need for preventive medical or health care;

(3) absence due to domestic abuse, sexual assault, or stalking of the employee or employee’s family member, provided the absence is to: (i) seek medical attention related to physical or psychological injury or disability caused by domestic abuse, sexual assault, or stalking; (ii) obtain services from a victim services organization; (iii) obtain psychological or other counseling; (iv) seek relocation or take steps to secure an existing home due to domestic abuse, sexual assault, or stalking; or (v) seek legal advice or take legal action, including preparing for or participating in any civil or criminal legal proceeding related to or resulting from domestic abuse, sexual assault, or stalking;

(4) 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; and

(5) when it has been determined by the health authorities having jurisdiction or by a health care professional that the employee’s or employee’s family member’s presence in the community would jeopardize the health of others because of the employee’s or family member’s exposure to a communicable disease, whether or not the employee or family member has actually contracted the communicable disease.”

Source: Minnesota Statutes § 181.9446, Subd. 2
Official text: https://www.revisor.mn.gov/statutes/cite/181.9446

Amendments effective 2024 added subdivision (6):

“(6) making arrangements for or attending a funeral service or memorial, making arrangements following a family member’s death, or grieving the death of a family member.”

Covered Family Members:

“Family member” includes:

• Child (biological, adopted, foster, stepchild, legal ward, or child of employee standing in loco parentis)
• Adult child
• Spouse
• Sibling
• Parent
• Mother-in-law and father-in-law
• Grandchild
• Grandparent
• Stepparent
• Legal guardian

Source: Minnesota Statutes § 181.9445, Subd. 4

Notice Requirements:

Minnesota law requires employers to provide employees notice of ESST rights:

• At the start of employment
• In English and the employee’s primary language if not English
• In employee handbooks (if employer provides handbooks)

Minnesota Department of Labor and Industry provides model notices employers may use.

Source: Minnesota Department of Labor and Industry, ESST Notice
Available at: https://www.dli.mn.gov/sick-leave

Employer Record-Keeping:

Minnesota law requires employers to include on each employee’s earning statement:

• Total ESST hours accrued and available for use
• Total ESST hours used during the pay period

Anti-Retaliation Protections:

According to Minnesota Statutes § 181.9447, Subdivision 3:

“An employer shall not discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise retaliate or discriminate against an employee for exercising or attempting to exercise any right guaranteed under sections 181.9445 to 181.9448.”

Source: Minnesota Statutes § 181.9447, Subd. 3
Available at: https://www.revisor.mn.gov/statutes/cite/181.9447

Local ESST Ordinances:

Cities of Bloomington, Minneapolis, and St. Paul have local ESST ordinances. Minnesota law requires employers to comply with the law most favorable to employees.

Source: Minnesota Department of Labor and Industry
Available at: https://www.dli.mn.gov/sick-leave-FAQs

2.3 Minnesota Paid Family and Medical Leave

Effective January 1, 2026, Minnesota’s Paid Family and Medical Leave program provides wage replacement and job protection for eligible employees taking leave for qualifying reasons.

Statutory Authority: Minnesota Paid Leave is codified in Minnesota Statutes Chapter 268.

Source: Minnesota Statutes Chapter 268
Available at: https://www.revisor.mn.gov/statutes/cite/268
Effective date: January 1, 2026

Program Administration: The Minnesota Department of Employment and Economic Development (DEED) administers the Paid Leave program.

Official website: https://paidleave.mn.gov/
Verified: January 15, 2026

Employee Eligibility:

According to Minnesota Department of Employment and Economic Development:

“To qualify for MN Paid Leave payments, you must meet all of the following:

• Work at least 50% of the time from a location in Minnesota
• Have earned a minimum of $3,700 in the past year
• You have a qualifying event
• A healthcare or service provider confirms the need for leave”

Source: Minnesota Paid Leave, How Paid Leave Works
Available at: https://pl.mn.gov/individuals/how-paid-leave-works
Published: October 2025
Verified: January 15, 2026

Types of Leave:

Medical Leave: Up to 12 weeks per benefit year for:

• Employee’s own serious health condition
• Pregnancy, childbirth, or recovery
• Medical treatment or recovery from injury or surgery
• Ongoing treatment for chronic conditions

Family Leave: Up to 12 weeks per benefit year for:

• Bonding with new child (birth, adoption, or foster placement) within 12 months of placement
• Caring for family member with serious health condition
• Qualifying exigency related to family member’s military service
• Safety leave related to domestic violence, sexual assault, or stalking

Combined Maximum: 20 weeks total per benefit year (cannot exceed 12 weeks in each category)

Source: Minnesota Statutes Chapter 268

Qualifying Event Requirements:

Minnesota law requires all qualifying events to:

• Last at least seven consecutive days (or seven days total for intermittent conditions)
• Be certified by health care provider or authorized professional

Benefit Payments:

According to Minnesota Paid Leave:

“Paid Leave pays part of your normal pay,” generally ranging from 55% to 90% of weekly wages depending on income level.

Source: Minnesota Paid Leave
Available at: https://pl.mn.gov/individuals/how-paid-leave-works

Maximum weekly benefit: Capped at state average weekly wage

Job Protection:

Employees are protected from termination and entitled to return to same or equivalent position after taking Paid Leave, provided they meet minimum service requirements.

Job protection eligibility: Begins after 90 days of employment

Premium Funding:

The program is funded through premiums on wages.

2026 Premium Rate: 0.88% of taxable wages

• Employers pay minimum 50% (0.44%)
• Employees pay maximum 50% (0.44%)

Source: Minnesota Paid Leave
Available at: https://pl.mn.gov/employers/how-paid-leave-works
Verified: January 15, 2026

Relationship to Other Leave Laws:

Minnesota Paid Leave may run concurrently with:

• Federal Family and Medical Leave Act (FMLA)
• Minnesota Parental Leave (Minnesota Statutes § 181.941)
• Earned Sick and Safe Time

Employers cannot require employees to use accrued paid time off before or during Paid Leave, but employees may voluntarily supplement benefits with PTO.

Anti-Retaliation Protections:

Minnesota Statutes Chapter 268 prohibits retaliation against employees for:

• Requesting Paid Leave information or benefits
• Filing applications for Paid Leave
• Taking Paid Leave
• Opposing practices the employee believes violate Paid Leave requirements

Employer Notice Requirements:

Minnesota law requires employers to:

• Post workplace notices about Paid Leave rights
• Provide notice of premium deductions on pay statements
• Designate Paid Leave Administrator with DEED

Source: Minnesota Department of Employment and Economic Development
Available at: https://paidleave.mn.gov/