The Minnesota Department of Labor and Industry (DLI) has concluded comment periods for its new Earned Sick and Safe Time (ESST) rules. While final rules and the statement of need and reasonableness have not yet been drafted, a draft of proposed rules 5200.1200 has been posted on the DLI’s website. Here is a quick reference summary:
Definitions (5200.1200): Draft rules clarify terms like “accrual year,” “qualifying purpose,” and “work day.”
Establishment of Accrual Year (5200.1201):
Employers can define the accrual year, but if it is different than a calendar year:
- Employers must clearly communicate what accrual year is being used and provide timely written notice before making any subsequent changes to the accrual year.
- Changes cannot reduce an employee’s accruals.
Determining Hours Worked (5200.1202):
- The 50% rule:
- Employees working more than 50% of their time in Minnesota will earn ESST on all hours worked regardless of work location.
- Employees working less than 50% of their time in Minnesota will earn ESST only on hours worked in Minnesota.
- Remote work location is the state from which the employee works remotely.
- Indeterminate shifts: ESST hours deducted will be depend on how the employee’s shift is covered or if there are similarly situated employees working the shift.
Accrual Credits and Increments (5200.1203):
- ESST accruals must be credited by the end of each pay period, but employers are not required to credit employees in increments of less than 1 hour.
- Employees who are rehired within 180 days of separation are entitled to reinstatement of up to 80 hours of previously accrued ESST.
Accrual Advancing (5200.1204):
- Employers may advance ESST hours based on anticipated hours of work in the accrual year. However, any ESST accruals in excess of the advanced amount must be timely credited to the employee.
- Employers must be clear on the method used (accrual or advancement) and provide employees with written notice of any change to that method prior to the start of the next accrual year.
Employee Use (5200.1205):
Employers cannot require employees to use ESST, however, the ESST protections only apply to those absences used for a qualifying ESST purpose and designated as ESST.
Employee Misuse (5200.1206):
- An employer may require documentation for a pattern of misuse of ESST, such as:
- Routine use immediately before or after a weekend, vacation or holiday.
- Routine use of less than 30 minutes at start of shift.
- ESST cannot be denied based on previous misuse or suspicion of misuse.
More generous employer sick and safe policies (5200.1207):
Only absences for an ESST-covered reason are eligible for the more generous ESST provisions allowing use other employer provided paid time off.
Employer Takeaways:
- Clearly designate your accrual method and calendar and notify employees of any changes in writing.
- Monitor employee work locations and duties to ensure proper accrual calculations.
- Align your payroll systems with the crediting requirements.
- Review your attendance/leave policies for consistency with misuse provisions.
- Make sure your leave policies clarify when legal protections apply.
Minnesota’s ESST law introduces new administrative and legal complexities. Wiley Reber Law can assist your organization with ESST and other paid leave provisions to ensure policies and procedures meet legal requirements while aligning with your organization’s operational needs. Contact Wiley Reber Law for tailored legal advice that works for your workplace.