2024 Minnesota Employment Law Update: Key FAQs for Companies on Legislative Changes

Background Screening | September 9, 2024

As we move through 2024, Minnesota’s employment landscape is evolving with several key legislative changes that employers need to be aware of. At PlusOne Screening Solutions, we’re committed to keeping you informed about important updates that could impact your business and employment screenings.  

The areas that these changes have affected: 

• • Pre-Employment Drug testing 

• • Salary Postings 

• • Restrictive employment covenants 

• • Access to personnel files 

• • Sick and safe time 

• • Paid family & medical leave 

• • Independent contractor misclassification 

• • Pregnancy accommodations 

• • Employees’ rights posters 

Below is a summary of the notable changes regarding the latest Minnesota employment laws. 

1. 1. Pre-Employment Drug testing

Starting August 1, 2024, employers can utilize “oral fluid drug testing” for pre-employment drug tests. This method uses saliva to quickly and accurately test for drugs, alcohol, and cannabis. If the initial oral fluid test is positive, inconclusive, or invalid, applicants have 48 hours to request a confirmatory test at a testing laboratory, with costs covered by the employer. Additional re-tests can be requested, however, must be paid for by the applicant. 

1. 2. Salary Postings

Beginning January 1, 2025, employers with 30 or more employees must include a “good faith estimate” of the salary range in all job postings. This estimate should reflect the minimum and maximum salary or hourly rate for the position and include a general description of benefits. If an employer chooses not to provide a salary range, a fixed pay rate may be listed instead. 

1. 3. Restrictive Employment Covenants

Effective July 1, 2024, service providers can no longer enforce restrictive covenants that prevent customers from hiring or soliciting their employees. Providers who had such covenants before this date must notify their employees that these provisions are now void. Exceptions apply to certain business consultants in the computer software development field who have future employment agreements with customers. 

1. 4. Access to personnel files

All private employers, regardless of size, must now provide access to personnel records if requested in good faith. This requirement extends to all employers and maintains existing protections and restrictions as outlined in Minnesota Statutes sections 181.960 – 181.966. 

1. 5. Minnesota’s Sick and Safe Time law

Amendments to the Sick and Safe Time law include increased employer liability for insufficient or inaccurate sick time provisions to include liquidated damages in an equal amount to the time the employee should have been provided. Employers must provide the correct amount of sick and safe time, maintain records for three years, and allow usage in increments from fifteen minutes to four hours. New reasons for using sick time now include funeral arrangements and addressing financial or legal matters related to a family member’s death. Employers are no longer required to specify sick and safe time on pay statements but must use a reasonable system to track and report it. 

1. 6. Minnesota Paid Family and Medical Leave law

Significant changes include an increase in the payroll tax rate from 0.77% to 0.88%, effective January 1, 2026. Employers with 30 or fewer employees may benefit from reduced premium rates if their average wage is 1.5 times the state’s average wage. Employers must cover at least 25% of the premium, while employees pay the remainder through wage deductions. 

1. 7. Misclassification of independent contractors

Effective July 1, 2024, individuals responsible for misclassifying independent contractors can face personal liability, including compensatory damages and penalties up to $10,000 per violation. The definition of “contractor” has been extended to include all “construction employees,” requiring employers in the construction industry to carefully review and adjust their worker classification practices. 

1. 8. Minnesota’s Pregnancy Accommodation Law

Changes now require employers to maintain insurance coverage for employees on leave due to pregnancy, childbirth, or related health conditions. This coverage must include group insurance policies or health care plans for both the employee and their dependents, provided the employee continues to pay their share of the premiums. 

1. 9. Employees’ Rights Posters

Employers must display a new educational poster, created by the Department of Labor and Industry, which outlines employees’ rights regarding employer-sponsored meetings or communications about religious or political matters. When available, the poster must be available in English and the five most common languages spoken in Minnesota. 

Conclusion 

Staying informed about these legislative changes is crucial for employers to ensure compliance and maintain a smooth operation. By adapting to these new laws, you not only ensure compliance but also contribute to a fair and supportive working environment. Stay proactive and updated to effectively manage your workforce and minimize legal risks. 

PlusOne Screening Solutions is here to support you in navigating these changes and we can assist with employment background screening services. 

If you would like to learn more about our background screening services, reach out to us today. We look forward to hearing from you.   

Contents are provided for information purposes only and should not be construed as legal advice. Users are reminded to seek legal counsel concerning their obligations and use of PlusOne Screening Solutions services.