Employers now have more clarity on how to apply the Minnesota Earned Sick and Safe Time (ESST) statute, thanks to new rules recently adopted by the Minnesota Department of Labor and Industry (DLI). The rules, which took effect on July 6, 2026, provide additional guidance to assist employers and employees covered by the law. Below is an overview of the top takeaways from the new ESST rules.
Quick Background on Minnesota’s ESST Law
An employer that has at least one employee, including part-time and temporary employees, who is anticipated to work at least 80 hours in a year in Minnesota is required to provide each covered employee with one hour of paid leave for every 30 hours worked (up to at least 48 hours per year) and permit them to use the ESST for certain qualifying reasons. Under the ESST law, an employee begins to accrue ESST when employment commences and may use ESST as it is earned (in other words, there is not a 90-day or other waiting period for use of accrued ESST).
DLI enforces the ESST law and is authorized to adopt rules to carry out its purpose. After a period of public comment which began in 2024, the DLI recently adopted and released the final rules, and also published FAQs about the new rules. You can find a full version of the adopted rules here, though the final rules have yet to be officially published.
Top Employer Takeaways From DLI’s New ESST Rules
1. An employer may change its accrual year but must beware of a new default rule.
If an employer does...
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