The Minnesota Labor Law Guide

Minimum wage is the lowest hourly pay rate that employers are legally obligated to pay employees. The federal minimum wage is a wage baseline, but different states, cities, and regions can adopt their own rates. 

As of 2024, the tipped minimum wage amount varies depending on business size, industry, and employee age.

$10.85 for most employees who:

• Work for large businesses (101-10,000 employees, annual gross revenues of $500,000 or more) 

$8.85 amount applies to: 

• Small employers (enterprises with annual gross revenues of less than $500.000)

• Employees aged 18 and 19 for the first 90 consecutive days of employment

• Employees who are 17 and younger 

• Employees who work for hotels, motels, lodging establishments, and resorts working under the authority of summer work or travel exchange visitor (J) non-immigrant visa

Cities that have higher minimum wage:

• Minneapolis- $15.57 per hour for all employers regardless of size as of 2024.

• St. Paul - $15.19 per hour for macro businesses as of 2024.

  • The rate for micro businesses (five or less employees) is based on a percentage increase of the state minimum wage divided by two.

Starting January 1st, 2025, the minimum wage will be $11.13 for most employees.

Cities and training wages will change effective January 1st, 2025:

• Minneapolis- $15.97 per hour

• St. Paul- $15.97per hour (for large and macro businesses)

• St. Paul-$15.00 per hour (for small businesses)

• Training wage- $9.08 per hour

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Minnesota does not allow tip credits against the minimum wage. Therefore, tipped employees are required to be paid minimum wage for all the hours they work.

Under the Minnesota Fair Labor Standards Act, employers must pay overtime for all hours worked above 48 per workweek. Overtime pay must be at least 1.5 times the employee’s regular pay rate. 

*The only exception is if the employee is exempt under Minnesota Statutes 177.23, subdivision 7.

Minnesota wage and hour laws generally require employers to provide nonexempt employees who work four consecutive hours or more with bathroom breaks and enough time to eat a meal. 

If the break is less than 20 minutes, it must be paid. Time to use the nearest restroom must be provided every four consecutive hours of work. 

In addition, nonexempt employees who work eight or more consecutive hours must be permitted sufficient time to eat a meal. A bona fide meal period is generally 30 minutes or more, but a shorter period may be adequate under special conditions.

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Vacation leave
Minnesota PTO law does not require employers to provide paid or unpaid vacation leave. State law allows employers to determine their own PTO policies. 

Paid Sick Leave
As of January 1, 2024, Minnesota employers must provide their employees with at least one hour of paid sick leave for every 30 hours worked, up to at least 48 hours of accrued EST a year. 

Starting January 1, 2025, the protections under Minnesota’s Earned Sick and Safe Time (ESST) law has been amended as it related to Paid Time Off policies. If a business has a Paid Time Off policy, or other paid leave over and above the amount required under the ESST law, and if that time can be used for personal illness or injury, then the additional PTO or paid leave must meet the requirements of the ESST law (other than accrual requirements) if the time is used for an ESST related purpose. Employers should review their PTO and paid leave policies to ensure that requirements around notice, documentation, retaliation, and replacement employees meet ESST law requirements.

Holidays
In Minnesota, employers aren’t required to offer paid holidays. If an employer wants to offer paid or unpaid holiday leave to their employees, it is at their discretion and should be noted in the employee manual and contract.

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Minnesota’s Child Labor Standards Act outlines when minors of certain ages can and cannot work. According to the law, “if employers are covered by state and federal requirements, both laws must be followed.”

Employers who fail to comply with this law's restrictions can be subject to penalties under Minnesota Statutes §181A.12. 

Minors who are younger than 14 years old cannot be employed. The only exceptions are:

• If they are at least 11 years old and working as a newspaper carrier

• If they are at least 12 years old and working in agriculture – with a parent or guardian's consent

• If they are at least 11 years old and working as a youth athletic program referee – with a parent or guardian's consent

Under federal law for employers with annual sales or revenue of $500,000 or more, minors under 16 cannot work after 7 PM, more than 3 hours per day, or more than 18 hours per week during the school year. 

Under state law for all employers, minors under 16 cannot work before 7 AM, after 9 PM (unless they work for a newspaper carrier), work more than 40 hours a week, or more than 8 hours for every 24 hours unless they work in agricultural operations. 

Under state law, for all employers, minors 16 and 17 years old cannot work after 11 PM on school days or before 5 AM on school days. Hours can be expanded to 1130 PM-430 AM with written permission from a parent or guardian. 

Minors are prohibited from working under these occupations and conditions:

• Establishments that serve liquor 

• Working with hazardous materials

• Working with assistance with materials like explosives, power-driven machinery, or meat saws.

• Working on construction sites

Hiring
It is considered illegal for employers to act on discriminatory employment practices before a job applicant is hired under the Minnesota Human Rights Act. 

It is illegal to attempt to get information that has to do with their protected class. 

Employers are prohibited from getting information by an application form, job interview, physical exam/health history, or third parties such as agencies. 

However, there are exemptions listed here under the Minnesota Statue §363A.20.

Firing
Minnesota employers have the right to terminate employees at-will for nearly any reason or for no reason at all, as long as the reason is not illegal.