resources

2023 Minnesota Legislative Updates

July 13, 2023

Minnesota's 2023 Omnibus Jobs Act contains several labor code updates as well as new workers' rights protections. Learn more about how your organization can stay compliant.
Alert

At A Glance

The Minnesota Governor has signed into law the Omnibus Jobs Act that includes:

Effective July 1, 2023

  • Non-compete agreements generally void in employment agreements
  • Expanded protections and accommodations for pregnant and nursing employees
  • New requirements for certain permissible deductions from wage payments

Effective August 1, 2023

  • Prohibition on certain mandatory employer-sponsored meetings

Effective January 1, 2024

  • Mandated paid sick leave
  • State-sponsored reasonable accommodation fund created
  • Notice requirements for agriculture and food processing workers
  • Expanded workplace posters

What is included in Minnesota's 2023 Omnibus Jobs Act?

On May 24, 2023, Minnesota’s governor signed into law the Omnibus Jobs Act that touches on many areas of the state labor code and significantly increases workers' rights and protections within the state. There are multiple effective dates for the different requirements.

Non-Compete Agreements Generally Void in Employment Agreements

Effective July 1, 2023, This bill declares non-compete agreements void and unenforceable under general circumstances but carves out exceptions related to the sale or dissolution of a business. The new law applies to new contracts and agreements created on or after the effective date.

New Requirements for Certain Permissible Deductions from Wage Payments

An update to the existing list of permissible deductions will become effective July 1, 2023 and require payroll deductions be made for certain charitable organizations. Employers will be required to make deductions for nonlabor organizations when requested by five or more employees.

Expanded Protections and Accommodations for Pregnant and Nursing Employees

Effective July 1, 2023 employers are required to make additional accommodations for nursing mothers and other lactating employees, as well as for pregnant employees.
The legislation expands existing protection for nursing mothers and lactating employees by removing language limiting reasonable paid breaks to the first twelve months after a birth and removing the requirement that the breaks for expressing milk must run concurrently with existing breaks provided to the employee.

New pregnancy accommodations include the opportunity for transferring to a different position, temporary leave of absence, as well as longer and more frequent breaks. Pregnancy accommodation provisions have been expanded to employers with one or more employees; the previous threshold was fifteen employees.

Expanded Workplace Posters

With the above laws being passed, there comes new notice and poster requirements employers will need to follow. Click here to view agency provided notice and posters.

  • Earned Sick and Safe Time (Effective Date: January 1, 2024)
  • Veterans’ Benefits and Services (Effective Date: January 1, 2024)
  • Nursing Home Workers Rights and Employer Obligations (Effective Date: May 24, 2023)
  • Employer-sponsored Meetings or Communication Rights (Effective Date: August 1, 2023)

Prohibition on Certain Mandatory Employer-Sponsored Meetings

Effective August 1, 2023 employers are prohibited from requiring employee participation in meetings or communications related to religion, unionization, or political matters and prohibits employers from taking adverse action against any employee who does not attend such meetings or refuses such communications.

This new law creates a posting requirement and penalties for violation.

State-Sponsored Reasonable Accommodation Fund Created

Available for employers of 500+ employees, a state-sponsored reasonable accommodation fund has been created to reimburse employers for costs associated with providing reasonable accommodations to applicants or employees with disabilities.

The capped costs of $30,000 per eligible employer in a fiscal year, as well as other caps for reasonable accommodations that are one-time only, are available to eligible employers through the earlier of June 30, 2025 or when the appropriated funds are exhausted. More information on the administration of this fund will be made available by September 30, 2023 from the Minnesota Employment and Economic Development Commissioner.

Mandated Earned Sick and Safe Leave

Effective January 1, 2024 Minnesota will require employers with one or more employees located in MN to provide Earned Sick and Safe Leave (ESSL) to all employees, including part-time and temporary employees, performing work for their employer within the state of Minnesota for at least 80 hours in a year.

  • Employees will accrue one hour for every 30 hours worked and may accrue up to 48 hours of ESSL in the 12-month benefit period.
  • The benefit period may be calendar year, employee anniversary, or some other annual date selected by the employer.
  • Employees may carry over any accrued, unused ESSL into the new 12-month benefit period, but employers may cap the amount of accrued leave to 80 hours. Employees may use ESSL as they accrue it.

The new law creates penalties for violations and a new workplace poster available here. See Minnesota Earned Sick and Safe Leave for more details.

Notice Requirements for Agriculture and Food Processing Workers

At the start of employment, agricultural and food processing employers must provide notice of rights and duties both in person and through written material. Under the existing law, the notice could have been provided either person to person or in writing. The update includes penalty provisions for violation of this notice requirement. This goes into effect May 24, 2023.

Next Steps

Additional resources, and any additional information made available, will be ready for Paylocity clients in the Paylocity Knowledge Base, PEAK.

Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.

011002000114a-compliancedashboard-fullwidth

Keep Up With Compliance

Between constantly changing employment laws and updates to the Affordable Care Act (ACA), keeping your workplace compliant can be a time-consuming and costly challenge. Eliminate the stress and stay up to date with our Compliance Dashboard. View compliance alerts and get a bird’s eye view of what you need to do to avoid fines and penalties.

 

Manage HR Compliance