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Update on Minnesota’s Most Recent Legislative Session

Major Legislative Changes Impacting Minnesota Employers

Minnesota’s legislature has been hard at work implementing new rules and obligations for employers, with changes to various laws that impact the workplace. In addition to amendments to the Minnesota Human Rights Act, Earned Sick and Safe Time, Paid Family and Medical Leave, and pay transparency laws, there have been additional updates that employers need to be aware of.

One significant change is the amendments to the Pregnancy Accommodation and Pregnancy and Parental Leave Laws, which will take effect on August 1, 2024. These amendments clarify the obligations of employers when an employee takes leave for pregnancy accommodation or under the pregnancy and parental leave law. Employers must maintain the employee’s insurance coverage during the leave period, but can require the employee to continue paying their share of the premiums. Additionally, time taken off for prenatal care appointments cannot be counted against the employee’s leave entitlement.

Another important development is the new Restrictive Covenant Law, signed into law by Governor Tim Walz on May 17, 2024. This law voids non-compete and non-solicitation provisions in contracts between a company and its customers, prohibiting companies from restricting customers from hiring or soliciting their employees. Existing agreements that violate this law must be disclosed to employees, and the law will take effect on July 1, 2024.

Governor Walz also signed legislation amending the Gratuities Law, requiring that tips or gratuities received through electronic payment be credited to employees in the same pay period and distributed in full in the next scheduled pay period. This amendment will come into effect on August 1, 2024.

Furthermore, the Minnesota legislature has provided employers with an alternative method for drug, alcohol, and cannabis testing through oral fluid testing, effective August 1, 2024. This alternative testing method must meet certain requirements and procedures outlined in the law.

Additionally, new rules and remedies have been introduced to target the misclassification of employees, with increased damages and penalties for non-construction employers who misclassify workers as independent contractors. These changes will take effect on July 1, 2024.

The powers of the Minnesota Department of Labor and Industry have also been expanded, allowing for greater investigation and remediation of complaints. Employers should be prepared for changes in how the department conducts investigations and addresses violations.

Overall, these updates reflect the ongoing efforts to ensure fair and equitable treatment in the workplace, and employers should stay informed and compliant with these new laws and regulations.

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