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1 Thank you for downloading Agent 77 s STATE EMPLOYMENT REGULATIONS FOR MINNESOTA. This form is provided to you as is. As provided, we believe it meets the requirements needed for state compliance, as applicable, at the time you download it. Any substantive change to the contents of this document may result in potential legal liability for you and your company. Agent 77, Inc. accepts no liability or responsibility for any of our documents that have had the contents altered beyond simply filling in the appropriate blanks and/or replacing place holder text and adding your company logo and information. This document is provided to you with the understanding it is not a legal or accounting opinion and should not be construed as such, and that Agent 77, Inc. is not engaged in the business of rendering legal or accounting services. If you need specific advice on any legal or accounting issue, the services of a competent professional should be sought. Please see for more information. This and all documents downloaded from our website are Copyright 2004, 2005, 2006, 2007, 2008, 2012, 2013 Agent 77, Inc. Reminder: Agent 77 s license prohibits you from copying and distributing this STATE EMPLOYMENT REGULATIONS FOR MINNESOTA to anyone outside of your company. Doing so is a violation of this license and will result in the revocation of your subscription and/or prosecution under federal copyright laws as well as possible civil litigation. Please see for a copy of the current license agreement. Minnesota Regs

2 What s New Minnesota minimum wage rose from $5.15 per hour to $6.15 per hour on August 1, Also, the training minimum wage also rose from $4.25 to $4.90 per hour on that date Minnesota employers are required to pay employees in transitory employments within 24 hours of the work being completed, of the employee's discharge or of the employee quitting Minnesota employees or their family members who have been victims of a crime must be granted sufficient unpaid leave to attend court proceedings or to answer a subpoena or the request of a prosecutor to attend court Minnesota employees who have been victims of domestic abuse must be granted sufficient unpaid leave to seek relief under the Minnesota Domestic Abuse Act. Also, victims of harassment must be granted sufficient unpaid leave to seek a restraining order Employees subject to isolation or quarantine for a communicable disease are protected from being terminated, disciplined, threatened or discriminated against Minnesota requires that employers grant up to 10 days of unpaid leave to employees who have an immediate family member killed or injured while on active military duty Minnesota requires that employers grant up to 1 day of unpaid leave to employees who have an immediate family member that has been mobilized to active military duty to attend the sendoff or return ceremony New sections added on Breastfeeding Rights, Drug Testing, Smoking in the Workplace and Employment Reference Liability Protection New section added on employee s rights to view their employment records As of July 24, 2008 Minnesota s minimum wage is below the federal minimum and most employees must be paid the federal minimum of $6.55 per hour As of July 24, 2009 Minnesota s minimum wage is still below the new federal minimum and most employees must be paid the federal minimum of $7.25 per hour Changes were made to the following sections: Discrimination, Jury Duty, Bone Marrow and Organ Donor Leave, Military Leave, Job Reference Liability, Smoking, Payment of Wages, Jury Duty, Voting, Child Labor and Family Leave. The following section was added: New Hire Reporting Changes were made to the following section: State Continuation of Benefits Changes were made to the following section: Payment of Wages Minnesota Regs

3 Introduction Employment laws vary from state to state with some being more employee-friendly than others. Federal regulations set minimum standards of worker protections that all employers of a given size must meet. Individual states, however, are free to grant workers additional or expanded rights or protections above this federal minimum. Virtually all employers in the U.S. are subject to federal employment regulations. Only the smallest, strictly local employers are not subject to federal regulations. If an employer does any of the following, they are participating in interstate commerce and are subject to federal employment regulations: Production of goods for commerce, such as transportation or communication Use of mail over state lines Interstate communications using the telephone Use of the Internet over state lines Interstate communications using electronic mail Make purchases from out-of-state vendors Sell to customers in other states This summary of employment regulations does not include information for those few employers not subject to the federal minimum employment regulations. Many states have regulations for public employers that are different than those for employers in the private sector. This document also does not include information on regulations (federal and state) that apply only to public sector employers. In this document we summarize the workplace regulations and worker protections available in Minnesota. Although not an exhaustive list, it covers the major topics small to mid-sized employers must deal with on a regular basis. Covered areas include: Wage, hour and overtime rules (including child labor and break rules); Leaves of absence (family leaves, voting time and jury duty); Discrimination and harassment regulations; and State rules on continuation of benefits. The federally mandated, but state run new-hire reporting requirements are covered under a separate document, available for download from Libretto or from the Agent 77 store. The following Quick View table summarizes these regulations. This is followed by a more detailed description of these regulations. Please be sure to read both carefully to understand your responsibilities under Minnesota and federal law. Also, see the resources section below for reference websites and Libretto tools that can help you comply with these regulations. Minnesota Regs 1 of 11

4 QUICK VIEW OF STATE EMPLOYMENT REGULATIONS FOR MINNESOTA Topic Minimum Wage Overtime Payment of Wages Work Hours and Breaks Child Labor Voting Time Minnesota Regulation $7.25 / hour Training minimum for employees under 20 years old in the first 90 days of employment is $4.90 / hour No tip credit is allowed Some localities have a higher minimum Non-exempt employees must be paid at least 1.5 times their regular rate for hours worked over 40 in a given week Employees must be paid at least monthly. Final paychecks must include any accrued vacation if vacation pay is provided under company policy Final paychecks must be delivered no later than the following payday for voluntary terminations and within 24 hours of the last day of employment for dismissals Minnesota requires employers to pay transitory employees within 24 hours of the work being completed, of the employee's discharge or of the employee quitting. Prohibition against certain deductions are detailed below. Employees working at least 8 contiguous hours must be given sufficient time to eat a meal, if this is less than 20 minutes it must be paid Employees must be given time to use the nearest bathroom at least once every 4 hours Employers must provide nursing mothers break time and a private place to express breast milk Employers employing minors under 18 must keep proof of age on file Federal and Minnesota law prohibit minors in certain occupations. See the U.S. Department of Labor and the Minnesota Department of Labor & Industry for information on these prohibitions (contact information is in the reference section). See the details section below for restrictions on hours minors may work Enough time to vote Pay may not be deducted Minnesota Regs 2 of 11

5 QUICK VIEW OF STATE EMPLOYMENT REGULATIONS FOR MINNESOTA Military Leave Family Leave Bone Marrow/Organ Donor Leave Employers must grant up to 5 years of military leave Employee must be reinstated to same or equivalent position after completion of military leave Employers may not terminate or threaten to terminate any employee called to military service Special benefit rules apply for military leave Employers must grant up to 10 days of unpaid leave to employees who are immediate family members of an active duty member of the military who has been injured or killed Employees with an immediate family member called to active military duty must be granted up to 1 day of unpaid leave (in a calendar year) to attend send-off or return ceremonies Employers with 21 or more employees: Must grant up to 6 weeks of unpaid family medical leave to employees who have worked at least half time for the past 12 months Leave must be granted for birth or adoption of a child Employee must be reinstated to same or equivalent position after completion of leave Benefits must be maintained during leave, although employee may be required to pay entire premium Employers with 50 or more employees: Must grant up to 12 weeks of unpaid family medical leave to employees who have completed a year of service or 1250 hours Leave must be granted for birth or adoption of a child, serious medical condition of the employee, to care for a family member with a serious medical condition, qualifying exigency for military leave and illness/injury of covered service member for military leave. Employee must be reinstated to same or equivalent position after completion of leave Benefits must be maintained during leave Companies must provide up to 16 hours of leave in a given school year for employees to attend school conferences or activities. This leave is unpaid but employees may choose to use accrued paid vacation or personal leave Employees must be allowed to use accrued sick leave to care for a sick child Posting requirements apply. Companies must provide up to 40 hours of paid leave for employees to donate organ or bone marrow. Minnesota Regs 3 of 11

6 QUICK VIEW OF STATE EMPLOYMENT REGULATIONS FOR MINNESOTA Jury Duty, Witness and Crime Victim Leave Breastfeeding Rights Smoking in the Workplace Drug Testing Job Reference Liability Personnel Records New Hire Reporting Discrimination and Harassment Continuation of Benefits Leave for jury duty or to act as a witness is required, but is unpaid Employee must be reinstated to same position after completion of jury duty Employees who are victims or witnesses of crime must be granted sufficient unpaid leave to attend court proceedings or to answer a subpoena or the request of a prosecutor to attend court Employees who are victims of harassment must be granted sufficient unpaid leave to seek a restraining order Employees who have been victims domestic abuse must be granted sufficient unpaid leave to seek relief under the Minnesota Domestic Abuse Act Employers must provide nursing mothers break time (concurrent with other breaks if possible) and a private place to express breast milk. Minnesota prohibits smoking in indoor public spaces, including places of employment. For exceptions, see below. Posting requirements apply. Employers may require a pre-employment drug test or implement an annual, reasonable suspicion, or post-accident drug test, provided that they have a written policy including a notice given to applicants and employees. Employers who give out information in writing about current or former employees are protected from civil suit, unless the information can be shown to be false Employers are required to provide, on request of a former employee, a letter describing the exact cause for termination. Employees have the right to examine their personnel records once every six months while employed and once a year after leaving employment. In addition, employees may request a copy of their personnel records and may dispute, in writing, any information contained in the records. Employers must report information on new hires/rehires within 20 days of hire. Minnesota prohibits employers from discriminating based on national origin, race or color, religion or creed, age (over 18), physical or mental disability, marital status, public assistance status, membership or activity in a local commission, isolation or quarantine for a communicable disease, actual or perceived sexual orientation, sex (including sexual harassment, pregnancy, childbirth, and other pregnancy-related conditions) or legal conduct during non-working hours. Details and contact information are listed below. Minnesota Regs 4 of 11

7 Wage, Hour and Overtime Rules Employers are subject to the federal minimum wage, hour and overtime rules through the Fair Labor Standards Act. This act specifies that businesses that do at least $500,000 in gross revenue, as well as all health care facilities and schools are subject to the federal rules. Also, employers involved in interstate commerce are subject to the federal rules. Minimum Wage Minnesota minimum wage is $7.25 per hour. A special training minimum wage of $4.90 per hour may be used in the first 90 days of employment for employees under 20 years old. Minnesota does not allow employers to take a tip credit for their tipped employees; all employees must be paid at least the minimum wage. Be aware that certain local governments in Minnesota have a higher minimum wage for employees in their jurisdictions. Be sure to contact your city or county government to see if there are any local minimum wage rules for your business. Finally, both federal and Minnesota regulations allow employers to apply for licenses to pay sub-minimum wages to certain disabled persons. Please contact the U.S. Department of Labor or the Minnesota Department of Labor & Industry for more information on applying for these licenses. (Contact information for both are listed in the reference section below.) Overtime Minnesota has the same overtime rules as the federal government. That is, for any hours worked over 40 in a given week, non-exempt employees must be paid at least one and onehalf times their regular pay. Like the federal rules Minnesota exempts certain employees from minimum wage and overtime rules. Excluded employee classes include: executive, administrative, professional, outside salespeople, and computer professionals. (Use Libretto s FLSA Resource Package for help in determining whether a given employee is exempt). Minnesota also permits exemptions for certain small employers not involved in interstate commerce. See the Minnesota Department of Labor & Industry web site for a list of these exemptions. Payment of Wages Minnesota law requires that employees be paid at least monthly, on a regular payday established and published for all employees. Minnesota requires that a terminating employee be paid for any accrued vacation in addition to all wages earned when vacation pay is provided under an employment agreement or company policy. When an employee leaves voluntarily, final paychecks must be delivered no later than the next payday, but no more than 20 days after separation. When an employee is terminated involuntarily, final the final paycheck must be delivered within 24 hours of the last day of employment. Deductions from the final paycheck may not be made without the employee's written consent, unless required by law. Employers shall not make deductions, directly or indirectly, from the wages due and earned by any employee, who is not an independent contractor, for lost or stolen property, damage to property, or to recover any other claimed indebtedness running from employee to employer. Minnesota also requires employers to pay transitory employees within 24 hours of the work being completed, of the employee's discharge or of the employee quitting. If the wages are not paid, the employer must also pay reasonable expenses of the employee to remain in Minnesota Regs 5 of 11

8 camp or elsewhere away from home while awaiting payment. In addition, if the wages are not paid within two days after termination for any cause, the employer must pay two times the amount of the employee's average daily earnings from the time of termination until payment is made in full. Pay statements may be provided electronically if employees have access to an employer's computer during their regular working hours to review and print their statements. Work Hours and Breaks Minnesota requires employees working 8 contiguous hours to have sufficient time to eat a meal. A federal trial court has interpreted a sufficient amount of time to mean an uninterrupted 30-minute meal period. the meal break is not at least a 20 minutes it must be paid. Also, employers are to give employees enough time to use the nearest bathroom every four hours. Child Labor Minnesota child labor law requires all employers employing minors under the age of 18 to have proof of age on file (a copy of a birth certificate, driver s license, or age certificate issued by a school). Employers who employ minors less than 16 years of age are subject to strict limits for hours worked per day and per week for their minor employees: More than 8 hours per day; More than 40 hours per week; On school days during school hours; nor During the school year, federal law restricts hours to no later than 7:00 PM, no more than 3 hours a day and not more than 18 hours a week. Daily hours of work may not be before 7:00 AM or after 9:00 PM. Employers who employ minors 16 and 17 years of age who have not graduated from high school are subject to the following limits for hours worked per day and per week. These employees may NOT work: Before 5:00 AM on a school day, nor After 11:00 PM on any day preceding a school day except with written permission from a parent or guardian when these hours may be expanded to 11:30 PM and 4:30 AM. Both federal and Minnesota law prohibits minors from working in hazardous or certain other occupations. Please contact the U.S. Department of Labor or the Minnesota Department of Labor & Industry for more information on restricted occupations for minor employees. Leaves of Absence Bone Marrow and Organ Donor Leave Employers who employ 20 or more employees must also grant employees up to 40 hours of paid leave to donate and organ or bone marrow. This is above and beyond any other leave or benefits an employee has accrued. It is not permitted to retaliate against any employee requesting this leave. Minnesota Regs 6 of 11

9 Voting Time Employees must be granted the time necessary to appear at a polling place, cast a ballot and return to work. This time off may not be deducted. Jury Duty, Witness and Crime Victim Leave Employers must provide paid leave for employees to attend jury duty or to act as a witness, Also, employers may not terminate or threaten to terminate any employee called to jury duty, and employees must be restored to their position within the company as if they had been on furlough. Minnesota also requires that employers grant their employees who have been victims or witnesses of a crime sufficient unpaid leave to attend court proceedings or to answer a subpoena or respond to the request of a prosecutor to attend court. Leave must also be extended to employees when spouses or next of kin are victims of a crime. Minnesota requires that employers grant their employees who have been victims of domestic abuse sufficient unpaid leave to seek relief under the Minnesota Domestic Abuse Act. Employees must give their employers 48 hours advanced notice of the need to take leave except in cases of immanent danger to the employee or their children. Employers must keep confidential any information collected for the reason for the leave. Also, employees who are victims of harassment must be granted sufficient unpaid leave to seek a restraining order. Employees covered by FLSA exemptions serving on a jury must be paid their full salary (minus jury stipend) or risk losing their exemption status. Military Leave Federal law provides that employees must be granted up to 5 years of military leave and must be restored to their position (or an equivalent position) within the company as if they had been on furlough. Also, employers may not terminate or threaten to terminate any employee called to military service, Please see Libretto s White Paper on USERRA for more details on military leave. Employers must grant up to 10 days of unpaid leave to employees who have an immediate family member killed or injured while on active military duty. Employees must give their employers as much advanced notice as possible before taking this leave. Employers may substitute any days of paid leave (such as bereavement leave) available to the employee for the unpaid leave. Also, employees with an immediate family member called to active military duty must be granted up to one (1) day of unpaid leave (in a calendar year) to attend send-off or return ceremonies. Immediate family members include spouses, children, parents, grandparents and siblings. Unless it would unduly disrupt an employer's operations, employers with 20 or more employees must grant unpaid leave to employees who work at least 20 hours per week for time spent providing services as members of the state civil air patrol by request of, and under the authority of, the state or political subdivisions of the state. Private sector employees who engage in active service in the military forces in times of emergency are entitled to leave and reinstatement in the same manner and to the same extent as is granted to public officers and employees of the state. Employees may not be terminated within one year of reinstatement. Minnesota Regs 7 of 11

10 Family Leave Minnesota s Parental Leave Act requires employers with 21 or more employees to grant up to 6 weeks of unpaid leave to employees who have been employed at least half time for the past 12 months. This leave must be granted for the birth or adoption of a child. The minimum period for adoption leave is four (4) weeks. After completion of the leave the employee must be reinstated to the same or an equivalent position (as regards to salary, benefits and seniority). Also, benefits, such as health care coverage, must be maintained during leave, although the employee may be required to pay the entire premium. Also, the federal Family Medical Leave Act (FMLA) requires employers with 50 or more employees to grant up to 12 weeks of unpaid family medical leave to employees who have completed a year of service or 1250 hours. This leave must be granted for the birth or adoption of a child, serious medical condition of the employee, to care for a family member with a serious medical condition, qualifying exigency for military leave and illness/injury of covered service member for military leave. After completion of the leave the employee must be reinstated to the same or an equivalent position (as regards to salary, benefits and seniority). Also, benefits, such as health care coverage and retirement benefits, must be maintained during leave. All employers must offer employees the opportunity to take up to 16 hours of leave in a 12- month calendar year to attend school conferences or activities. This leave is unpaid, however an employee may choose to use available paid vacation or personal time for this leave. If possible, this time must be scheduled so to not unduly interrupt the employer s operations. Minnesota requires that employees be able to use any accrued sick leave to attend a sick child. The Division of Labor Standards will provide employers with appropriate posters. Other Employment Regulations Breastfeeding Rights Minnesota requires employers to make a reasonable effort to provide a private place near the workplace (not a toilet stall) for a nursing mother to express breast milk. Employers must also provide reasonable unpaid break (concurrent with the break time listed above where possible) to a nursing mother for the purpose of expressing breast milk, unless doing so would seriously disrupt operations. Drug Testing Employers may require a pre-employment drug test after an offer has been extended, and that all applicants are so tested and that the entire cost of the test is the responsibility of the employer. In addition, employers may implement a drug test as part of an annual fitness for duty physical exam, random drug testing for employees in safety-sensitive positions, drug tests for reasonable suspicion of violation of stated employment drug policy, or a postaccident drug test, provided that they have a written policy including a notice given to applicants and employees. This policy must include information on consequences of a positive test, the right to not take the test (and the consequences of refusal), and the appeal process (including the right of the employee to request and pay for a second test). Minnesota Regs 8 of 11

11 Smoking in the Workplace Minnesota prohibits smoking in spaces that are available to the general public and in places of employment, licensed child or adult day care center or group home and in any health care facility. Exceptions include designated smoking areas, private function halls and any other private place of business not generally available to the public. Private employers may implement a smoking ban in their workplace if they so choose. No smoking signs must be posted in areas where smoking is prohibited. Job Reference Liability Employers who limit information given out about current or former employees to dates of employment, wage history, job description and duties, job training provided to the employee, and any acts of violence, harassment or other illegal acts are protected from civil suit by the former employee, unless the information can be shown to be false and the disclosing employer knows (or should have known) it to be false. With the current or former employee's written permission, evaluations, disciplinary actions and the reason for termination may also be disclosed. (Information on any acts of violence, harassment or other illegal acts, evaluations, disciplinary actions and the reason for termination must be in writing and a copy must be sent to the employees current or last known address.) Also, employers are required to provide (in 10 working days), on request of a former employee, a letter describing the exact cause for termination, provided the request is made within 15 days of termination. It is unlawful for any employer to seek to prevent a discharged employee, or one who has voluntarily left its employ, from obtaining employment elsewhere. Personnel Records Upon written request, employees have the right to review their personnel file once every six months while employed and once per year after they leave employment (as long as the records are maintained). Employers must arrange this review within 7 business days of the written request (or 14 days if the records are out of state). An employer representative may be present during this review. Employees also have the right to request, in writing, a copy of their records, free of charge. Employees who dispute anything in their personnel record may ask that that the employer change the information. If the employer chooses not to accept the changes, the employee has the right to submit a written position paper (up to five pages) that becomes part of the employee s permanent record and must be provided to anyone receiving a copy of the disputed portion of the record. Employers may not retaliate against employees seeking these rights, and employees may seek redress in civil court if any of these rights are denied. Certain records, such as employment references and investigatory information is not available to the employee. Employers with 20 or more employees are required to provide written notice to a job applicant upon hire, and to an employee upon termination, of the rights and remedies provided in the Minnesota Personnel Records Statute. New Hire Reporting Employers must report new/rehired employees' address, SSN, date of birth, employer's name, address and FEIN within 20 days of hire on federal form W-4 or Minnesota's state website - Minnesota New Hire Reporting Center. Minnesota Regs 9 of 11

12 Discrimination and Harassment Minnesota prohibits discrimination or harassment based on: National origin or ancestry Race or color AIDS or AIDS-related virus Religion or creed Age (18-70) Mental or physical disability Marital status Public assistance status Military service Membership or activity in a local commission Genetic testing results Isolation or quarantine (up to 21 days) for a communicable disease believed to be caused by bioterrorism or new or previously controlled or eradicated agents or toxins Actual or perceived sexual orientation, Sex (including sexual harassment, pregnancy, childbirth, and other pregnancyrelated conditions), or Lawful conduct off-site during non-working hours (smoking, alcohol consumption, etc.). Additionally, employers with 15 or more employees are subject to the federal law GINA, which prohibits discrimination based on genetic testing. Employers with more than 50 permanent, full-time employees must make reasonable accommodation for the known disability of a qualified employee or applicants, unless such accommodation would cause an undue hardship. Employers must provide pregnant employees with the same benefits as provided to other employees who are not pregnant, but who are otherwise similar to the pregnancy employee in their ability to work. Whistle blowing is protected. State Continuation of Benefits Benefits requirements change frequently. Currently continuation coverage apply to employers with two (2) to nineteen (19) employees. Eligible employees have the right to continue coverage for up to 18 months (36 months for dependents). The following link will provide current information from the Minnesota Department of Health: Minnesota Regs 10 of 11

13 Resources/Posters Minnesota Department of Labor and Industry United States Department of Labor Department of Human Rights Minnesota New Hire Reporting Center Related Libretto Products FLSA Resource Package (for help in determining overtime exempt / non-exempt status) Overtime Guidelines Break Period Guidelines Family Medical Leave of Absence Policy Military Leave of Absence Policy Jury Duty-Witness Leave Policy Voting Time Policy Prohibited Harassment and Nondiscrimination Policy & Employee Acknowledgement Drug & Alcohol Testing Policy & Release Forms Guidelines on Smoking In the Workplace Guidelines on Verification of Employment and Providing References COBRA Continuation Coverage Policy General Notice of COBRA Continuation Coverage Rights COBRA Continuation Coverage Election Information: Notice And Form New Hire Reporting for Minnesota Minnesota Regs 11 of 11

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