Over a year after Minnesota’s Earned Sick and Safe Time (ESST) law went into effect in January 2024, Minnesota’s Department of Labor and Industry (DLI) recently published proposed permanent rules (the Proposed Rules) that, if adopted, will regulate the ESST law. Although the rules are not yet final, they offer insights for employers on DLI’s interpretation of the ESST law.
Certain Employees Accrue ESST When Working Outside of Minnesota
As a reminder, under the Minnesota ESST law, employees accrue one hour of ESST for every 30 hours worked, up to 48 hours annually. The Proposed Rules explain that an employee’s hours worked outside of Minnesota count towards accrual as long as the employer anticipates the employee will work more than 50% of their hours for the employer inside of Minnesota per accrual year. If the employer anticipates that the employee will work 50% or less of their hours in Minnesota during the accrual year, then only the employee’s hours worked in Minnesota will count toward accrual of ESST. If the employee begins the accrual year without the expectation of working in Minnesota for more than 50% of their work time, but the expectation of working in Minnesota increases during the year to more than 50% of worked time, then the employer must allow the employee to accrue hours beginning on the date of the change in circumstances. Under the Proposed Rules, an employee who is teleworking is considered to be working in the state from which they telework.
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