MN ESST: Amendments to Minnesota's Safe and Sick Time Act 2024

MN ESST: Amendments to Minnesota’s Safe and Sick Time Act 2024

Minnesota’s Earned Sick and Safe Time (ESST) Act has been amended for 2024, introducing new rules and adjustments that Minnesota employers must follow as part of mandatory compliance.

These changes are one small piece of a broader movement to ensure that workers across the state have access to paid leave for health and safety reasons, offering critical support to families and individuals alike.

This guide explains what the Minnesota Safe and Sick Time Act entails, what amendments have been made, and how employers can effectively maintain state compliance using Mosey.

What Is the Minnesota Safe and Sick Time Act?

The Minnesota Safe and Sick Time Act (ESST) was created to ensure that employees across the state can accrue paid time off for illness, injury, medical appointments, or safety concerns, such as instances of domestic violence or stalking. It also allows employees to take time off to care for family members facing similar circumstances.

The law originally went into effect to provide employees in both public and private sectors, regardless of business size, the ability to earn one hour of paid sick and safe time for every 30 hours worked, up to 46 hours a year.

The ESST was designed with flexibility in mind, allowing employees to use the accrued time as needed and helping them manage their personal and family health and safety. The law covers part-time and full-time workers, providing legal protections when they need time off to manage their medical care or preserve their safety.

Recent amendments to the ESST have clarified and expanded the program’s provisions to increase its acceptable use cases and encourage employers to fully adhere to it.

What Are the Additional Penalties for ESST Violations?

Under this sick and safe time law, employers are required to provide employees with the necessary ESST. If employers don’t meet their ESST compliance obligation, they must compensate employees for the ESST they were required to provide and may also be required to provide cash damages.

Recordkeeping responsibilities have also become more strict. Employers who do not maintain accurate ESST records are liable for 48 hours of ESST that they failed to provide. They may also be required to provide cash damages that an employee incurred as a direct result of the violation.

What Is the Rate of Pay for ESST?

The amendments also clarify how employees should be paid for ESST. Instead of “hourly rate,” the term “base rate” is now used, which refers to the pay the employee would receive during the leave period. For those paid by commission or piecework, the base rate must not be less than the applicable minimum wage.

Additional pay like commissions, bonuses, tips, gratuities, and holiday premiums are excluded when calculating ESST. Since additional compensation is performance-based, and holiday premiums are based on compensation for the inconvenience, there’s no reasonable way to calculate and compensate for pay outside of standard wages.

What Are the Increments of ESST Use?

Initially, employers were required to provide ESST in the smallest increments tracked by the employer’s payroll system, which created challenges for detailed tracking platforms.

The amendment now clarifies that employers don’t need ESST to be taken in increments of time as small as 15 minutes. However, they also can’t require that employees’ use of it be in increments exceeding four hours.

How Do the Amendments Affect Earnings Statements and ESST Tracking?

These amendments ease the requirement of tracking ESST on earnings statements at the end of each pay period.

Employers now have the option to provide the information through a “reasonable system,” such as an online platform where employees can view their available and used ESST. If this is the chosen method, employees must have access to an employer-owned computer to review and print their records.

Employers are required to store ESST tracking records for at least three years. They must also be easy to access in the event that the Department of Labor and Industry (DLI) wants to audit them. Full, current, and accurate records need to be delivered within 72 hours of an audit request.

What Is the Expanded Definition of an Employee?

The 2024 amendments redefine “employee” to include those expected to work at least 80 hours per year for the employer and remove a previous waiting period before using accrued ESST. Additionally, exemptions for certain firefighters, state officials, and temporary farm workers have been introduced, while flight crew members are no longer exempt.

The most important part of this distinction is that an employee doesn’t need to have worked 80 hours in a year to qualify for ESST; an employer only needs to anticipate that their work hours will exceed 80. Employees can use ESST as soon as they receive it and may not need to work 80 hours before they reach eligibility.

How Do the Amendments Encourage Employers To Exceed Minimums?

Employers with more generous paid time off (PTO) policies must ensure they comply with the ESST minimum standards. The amendments clarify that if an employer offers more PTO than the ESST requirement, it must meet or exceed the Act’s protections. Employers also cannot impose more restrictive usage terms on PTO policies that include sick and safe time.

The goal is to motivate employers to do more than the bare minimum for compliance. While employers are required to comply with ESST rules, the state of Minnesota doesn’t want sick time or paid time off to begin and end with ESST. Employers aren’t required to do more, but they’re encouraged to explore more generous leave policies.

What Are the Expanded Use Cases for ESST?

New reasons for using ESST have been added, including attending funerals or dealing with financial matters following a family member’s death. However, public emergency responders, such as firefighters and public safety officers, cannot use ESST for weather-related events when their duties require responding to them.

Under ESST, the term “family member” includes almost all individuals who could reasonably be considered family, including family-in-law. Employees can designate one person per year outside of their family to be considered family for the purposes of ESST.

How Does It Leave the Door Open for Policy Changes?

The Department of Labor and Industry has legal standing to create new rules, enhance or interpret existing rules, and expand ESST requirements.

At this time, the Department hasn’t released any concrete expansion plans, but they want employers to know that change is always possible. Employers should stay vigilant and adjust policies as further guidance emerges.

How Does The Act Interact With Federal Sick and Medical Leave Laws?

The Minnesota Safe and Sick Time Act operates in conjunction with federal laws such as the Family and Medical Leave Act (FMLA) and the Fair Labor Standards Act (FLSA).

However, there are other distinctions employers should recognize:

Family and Medical Leave Act (FMLA)

The FMLA is a federal law that allows eligible employees to take up to 12 weeks of unpaid leave per year for personal illness, to care for a family member, or for other qualifying reasons, such as the birth or adoption of a child. The key difference is that the FMLA provides unpaid leave, whereas Minnesota’s ESST provides paid sick and safe time.

Employers must comply with both laws. Employees who qualify for both FMLA and ESST can use their accrued ESST time to receive pay while on FMLA leave. In this sense, ESST complements FMLA by providing financial support during an employee’s federally protected time off.

Fair Labor Standards Act (FLSA)

The FLSA sets standards for minimum wage, overtime pay, and recordkeeping. While the FLSA does not specifically address sick leave, employers must ensure that their wage and hour practices comply with both federal and state laws when employees use their ESST.

For instance, non-exempt employees must still receive appropriate overtime pay if applicable, and paid ESST hours must be reflected in the employee’s wage calculations.

Workers’ Compensation

While workers’ compensation is a separate system, employees injured on the job can use ESST for appointments related to their recovery, health condition, health care, preventive care, or for time off before their workers’ compensation benefits begin.

Employers should make sure that ESST is appropriately coordinated with workers’ compensation claims to avoid confusion or errors in payroll.

How To Abide by the Minnesota Safe and Sick Time Act

Employers in Minnesota should take proactive steps to ensure full compliance with the amended ESST law in 2024. These steps include:

Update Policies and Employee Handbooks

One of the first steps is to update any company policies or employee handbooks to reflect the amendments to ESST law. This includes confirming that employees are informed about their right to accrue and use ESST, that policies include the expanded definition of family members, and that clarity on accrual and carryover limits is provided.

Maintain Accurate Records

Employers are required to maintain records of employees’ accrual of sick and safe time hours and use of ESST. Make sure your timekeeping and payroll systems are updated to track ESST hours accurately. Employers should also be able to provide employees with their total number of ESST hours at any time upon request, as required by the law.

Post Required Notices

Minnesota law requires employers to display notices informing employees of their rights under the ESST law. These notices should be placed in visible locations like break rooms or common areas.

Additionally, ensure that all employees, including those working remotely, receive notices electronically or by mail.

Avoid Requesting Unnecessary Documentation

Under the 2024 amendments, employers cannot demand excessive documentation from employees who request ESST, especially in cases involving personal safety. Reasonable documentation can be requested if it doesn’t heavily infringe upon the safety or privacy of a worker.

For instance, employers should not require employees to provide a detailed account of the circumstances surrounding their safe leave due to sexual assault, domestic abuse, or domestic violence. Keep documentation requests reasonable and sensitive to employee privacy.

Improve Your Compliance With Mosey

Mosey’s compliance management platform allows employers to track state-specific requirements and provides resources to simplify compliance tasks. Focus on managing your business while Mosey works in the background to keep you on track. Schedule a demo with Mosey to learn how we can optimize your business.

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