Minnesota Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2026)

Minnesota’s Paid Family and Medical Leave program is live. It launched January 1, 2026, and is administered by DEED. The Minnesota paid family and medical leave 2026 program covers nearly all private employers in the state, regardless of company size.

Eligible employees can take up to 12 weeks of medical leave and up to 12 weeks of family leave per benefit year. The combined cap is 20 weeks. Employees qualify by earning at least $3,900 in the prior year and working at least 50% of their time in Minnesota.

The program replaces a portion of the employee’s wages at 55% to 90% of their regular wages, scaled by income. The maximum weekly benefit is $1,423.

PFML employer obligations

The payroll premium is 0.88% of taxable wages. Employers pay at least 50%; employees pay up to 50%. Small employers (30 or fewer employees with an average wage under 150% of the statewide average) pay a reduced rate of 0.66%, with the employer share set at 0.22%.

The first premium payment covers January 1 through March 31, 2026. It is due April 30, 2026. Use the DEED premium calculator to estimate your liability before that date.

Required employer actions: post the PFML workplace poster in all languages spoken by five or more employees, provide written notice to each employee, obtain signed acknowledgment, and update the employee handbook.

For a specialty sub with 25 field workers averaging $30 per hour over 40-hour weeks, the weekly PFML employer share works out to roughly $165. Factor that into your 2026 labor cost model.

PFML equivalent plan option

Employers can opt out of the state PFML program by offering a private plan that provides equal or better benefits. Submit the request to DEED by February 15 for a plan starting April 1. Application fees range from $250 (fewer than 50 employees) to $1,000 (500+ employees).

The private plan cannot charge employees a premium above what they’d pay under the state program (capped at 0.44% of taxable wages).

Minnesota’s Earned Sick and Safe Time (ESST) law covers employees who work at least 80 hours in a year for the same employer. Workers accrue 1 hour of paid leave for every 30 hours worked. For details, visit the Minnesota ESST page at DLI.

Minnesota earned sick and safe time (ESST) now allows employers to require documentation after 2 consecutive missed scheduled workdays (down from 3 under the July 1, 2025 SF 17 amendment). Employers cannot demand a specific type of document or disclosure of the underlying medical condition.

ESST pay is calculated at the base rate, not any premium shift rate. Funeral leave is now also covered under ESST. Employees may voluntarily swap shifts during ESST leave but employers cannot require them to find a replacement.

While Minnesota law does not require employers to provide vacation days, many offer it as a perk. Employers can implement accrual or roll-over systems, allowing employees to earn vacation days based on payroll frequency or carry over unused vacation days.

However, some employers may adopt a use-it-or-lose-it policy, where unused vacation days must be used by a certain date.

Bereavement leave is now covered under ESST. Minnesota does not mandate a separate bereavement leave law, but employers must allow ESST use for that purpose.

Minnesota law does not require employers to provide holiday leave. Employers are not obligated to offer paid or unpaid leave for holidays unless specified in employment contracts or company policies.

Employers must excuse employees from work for jury duty. Employees cannot be penalized for attending jury service.

Employees have the right to take time off to vote during elections without penalty.

Minnesota ESST covers paid leave for employees dealing with domestic abuse, sexual assault, or stalking.

Minnesota law does not require employers to provide emergency response leave, such as for firefighters or first responders.

However, state employees who are certified Red Cross volunteers are entitled to 15 days of paid leave to participate in specialized disaster relief services.

Minnesota grants paid leave for organ and bone marrow donation, allowing employees to take up to 40 hours of paid leave for each organ donation and a similar amount for bone marrow donation, with the combined length of leave determined by the employee, subject to employer agreement

Minnesota grants paid school leave, allowing employees to take up to 16 hours of leave within a 12-month period to attend school conferences or related activities for their child, provided these events cannot be scheduled during non-work hours.

Minnesota offers up to 15 days of paid leave for employees who are members of the National Guard or other military reserves, allowing them to take time off without loss of pay or benefits while engaged in training or active service.

Minnesota now has three active minimum wage tiers. Construction contractors working across the state must track all three:

• State: $11.41/hour for all employers statewide (effective January 1, 2026)
• Minneapolis: $16.37/hour for all employers (Minneapolis minimum wage 2026), effective January 1, 2026. Applies to any employee performing at least 2 hours of work within Minneapolis city limits in a calendar week. Source: Minneapolis Civil Rights Department
• St. Paul (st. Paul minimum wage 2026): $16.37 for employers with 101+ employees as of January 1, 2026; $16.37 for employers with 6–100 employees as of July 1, 2026; $14.25 for micro employers (1–5 employees) as of July 1, 2026. Source: St. Paul Minimum Wage Ordinance, Ch. 224

The compliance risk for construction contractors: a crew that works in Minneapolis on Monday and in Bloomington on Tuesday in the same pay week owes the Minneapolis rate for Monday’s hours. Pay the wrong rate, and you face back-pay liability plus liquidated damages. Track the job site location on your time records, not just the employee’s home office.

Workers with disabilities who hold a permit issued by the Minnesota Department of Labor and Industry can be paid below the minimum wage. The rate reflects their productivity compared to non-disabled peers in similar roles.

The 90-day training wage for workers under 20 is $9.31/hour as of January 1, 2026. This applies only during the first 90 consecutive days of employment. After that, the full $11.41 rate applies.

• Disabled employees with a state-issued DLI permit
• Minors under 14 years old (except acting, newspaper delivery from age 11, and agricultural work from age 12 with parental consent)

Minnesota is an at-will employment state, meaning employers and employees can terminate the employment relationship at any time, for any reason, as long as it is not discriminatory or in violation of public policy.

However, employees cannot be terminated based on their membership in a protected class, and courts often ensure non-compete agreements balance the employer’s interests with the employee’s right to earn a living.

Minnesota is NOT a right-to-work state. Private-sector unions in Minnesota can negotiate union security clauses under the National Labor Relations Act (NLRA). A union security clause can require employees to pay union dues or fees as a condition of continued employment.

What Minnesota does prohibit is discrimination based on union membership status. That is an anti-discrimination protection, not a right-to-work law. For construction contractors managing both union and non-union crews, this distinction matters. If workers are covered by a collective bargaining agreement that includes a union security clause, those workers may be required to pay dues or fees regardless of their personal preference.

Employers may conduct background checks and drug testing in Minnesota, but procedures must comply with state and federal law. Pre-employment drug testing is allowed as part of a written policy.

As of August 1, 2024, employers may use oral fluid (saliva) testing in addition to urine testing. Oral fluid tests typically detect cannabis use within the prior 48 hours. This is a useful tool for construction employers enforcing zero-tolerance policies because it narrows detection to near-impairment windows, reducing exposure under the Lawful Consumable Products Act (which prohibits adverse action for off-duty cannabis use).

Minnesota enforces equal employment opportunity laws, prohibiting discrimination in hiring, firing, or other employment decisions based on race, gender, age, disability, sexual orientation, or other protected classes.

Minnesota labor laws also protect employees from workplace harassment and ensure safe working conditions.