Major Changes and Amendments to Minnesota’s Employment Laws: What Employers Need to Know
Minnesota’s legislature has been hard at work providing new rules and obligations for employers, with amendments and additions to various laws that will impact businesses across the state. From changes to pregnancy accommodation and leave laws to new restrictions on non-compete agreements, here is a breakdown of the major updates that employers need to be aware of.
One of the key changes coming into effect on August 1, 2024, is the amendments to the state’s pregnancy accommodation and pregnancy and parental leave laws. These amendments clarify the requirements for maintaining employee insurance coverage during leave and ensure that time off for prenatal care appointments does not count against an employee’s leave entitlement.
Another significant development is the new law voiding non-compete and non-solicitation provisions in contracts between companies and customers, effective July 1, 2024. This law aims to protect customers’ rights to hire or solicit employees and requires companies with existing agreements to notify employees of the changes.
In addition, a new law regarding shared gratuities will require employers to credit tips received by credit card or electronic payment to employees in the same pay period and distribute them in full by the next scheduled pay period. This law will take effect on August 1, 2024.
Employers will also have the option to conduct alternative drug, alcohol, and cannabis testing using oral fluid testing starting August 1, 2024. This method allows for on-the-spot testing and requires employers to follow specific procedures when administering the tests.
Furthermore, new rules and remedies have been introduced to target the misclassification of employees, with increased damages and penalties for employers found to have misclassified workers. These laws will go into effect on July 1, 2024, and aim to prevent employers from improperly classifying workers as independent contractors.
Lastly, the powers of the Minnesota Department of Labor and Industry have been expanded to investigate complaints and order appropriate relief for violations. Employers should be prepared for changes in how investigations are conducted and the potential remedies that may be imposed.
Overall, these updates to Minnesota’s laws will have a significant impact on employers and businesses operating in the state. It is crucial for employers to stay informed and ensure compliance with the new regulations to avoid any potential legal issues.
