Minnesota: A Final Reminder of the New Laws Effective January 1, 2026

By Martin D. Kappenman and Francis P. Rojas - Peters & Kappenman, P.A.

December 17, 2025

As of January 1, 2026, Minnesota employers will need to comply with the following new laws.

•    Meal and Rest Breaks
    o    The law has changed from “adequate time” to a rest break to be at least fifteen (15) minutes.  Minnesota employers must provide one rest break for every four (4) hours worked.
    o    The law has changed from “sufficient time” to eat a meal to at least thirty (30) minutes.  Additionally, a meal break now needs to be provided if an employee works six (6) or more consecutive hours.

Recommended Action: Employers should update their break policies and handbooks.

•    Earned Sick and Safe Time 
    o    Employers are now permitted to require documentation from employees if they are absent two (2) or more consecutive days. Previously it was three (3) days. 
    o    Employers are now permitted to advance pro-rated number of hours as long as they top-up the employees if they underestimate the hours.  This was not allowed previously.  For example, Adam starts work on June 1.  His employer anticipates he will work 900 hours during the remainder of the year and advances him 30 hours of ESST. Adam ends up working 930 hours, so his employer must provide him another hour of ESST.
    o    ESST now covers employees who are “reasonably anticipated” to work 80 hours a calendar year.  Previously, ESST required employees to work the 80 hours.

Recommended Action: Employers should update their attendance policy, ESST/PTO policy, and handbooks.

•    Minimum Wage 
    o    The minimum wage in Minnesota will increase from $11.13 per hour to $11.41 per hour.  An updated minimum wage poster can be found here: dli.mn.gov/posters.
    o    The minimum wage in Minneapolis and St. Paul will increase to $16.37 per hour.  Employers in Minneapolis and St. Paul must display the corresponding Labor Poster, which can be found here: 2026 Minneapolis Poster and 2026 St Paul Poster.

Recommended Action: Employers should update the posters in the breakrooms and/or disseminate the posters to their workers. Employers should also update their payroll for minimum wage increases.

•    Minnesota Paid Family and Medical Leave (PFML) 
    o    The Minnesota Paid Leave law (Chapter 59 - MN Laws) will take effect on January 1, 2026.  This law creates a state-administered mandatory paid family and medical insurance program and will be administered by the Minnesota Department of Employment and Economic Development (DEED). 
    o    Under this law, employees would be eligible for 12 weeks of paid leave to care for a family member with a serious health condition, to bond with a new baby or child, or when the employee’s own serious health condition prevents them from working.  Additionally, an employee may use the leave to support a family member called to active duty or if the employee or a family member is facing a significant personal safety issue.  If the employee needs both types of leave in the same benefit year, the employee may qualify for up to 20 weeks in total.

•    Not all employees are covered under PFML.  
    o    Self-employed individuals and contractors are not covered by the Minnesota Paid Leave. However, they may opt-in for paid leave benefits.
    o    There is a seasonal worker exception for those “who are employed no more than 150 days during any consecutive 52-week period in hospitality by an employer whose average receipts during any six months of the preceding calendar year were not more than 44% of ties average receipts for the other six months of the year.”
    o    Applicants are ineligible for PFML benefits if they are incarcerated or receiving unemployment benefits for any portion of a typical workweek.

•    Premium Rate 
    o    The premium rate will be 0.88 percent and can be split between employer and employee contributions. Employers will contribute 50% of the total premium, although they may choose to pay up to 100%. 
    o    NOTE: The premium rate for small employers will be 0.66%, which can be split between the employer and the employee.  The maximum contribution that can be deducted from the employee is 0.44%.

•    PFML Protections 
    o    An employer cannot retaliate against an employee for requesting or obtaining PFML. An employer cannot obstruct or interfere with an employee’s application for PFML. 
    o    An employee must be returned to the same position they held when the leave started, with equivalent benefits, pay, and other terms and conditions of employment.  If during the leave, the employee experiences a layoff or if the employee’s position is eliminated, the employee is not entitled to reinstatement in the former or comparable position.  In such circumstances, the employee retains all rights under the layoff and recall system, including in a system detailed by a collective bargaining agreement, as if the employee had not taken the leave.

•    Minnesota employers must display the PFML poster, which can be found here: PFML Poster.

Recommended Action: Employers should have provided the PFML notice to employees by December 1, 2025. If the employer is seeking the seasonal hospitality designation, the employer should have provided written notice to the current seasonal employees by December 1, 2025.  Employees should update their handbook in order to be compliant with the new PFML law.
 
If you have not already, now is the time to update your handbook with the appropriate ESST and PFML language and notices.  Peters & Kappenman can assist with this process.

www.pklaborlaw.com