On July 6, 2026, the Minnesota Department of Labor and Industry (“DLI”) issued new Earned Sick and Safe Time (“ESST”) rules. A link to the new rules can be found here, and FAQs about the rules can be found here.
The new rules resolve several questions that have emerged since the ESST statute became effective in 2024. Among other things, they clarify that employers must designate and communicate a 12-month ESST accrual year to employees, or the calendar year will apply by default. The rules also establish that employers may change their accrual year or accrual method. However, advance written notice is required, and a change negatively affecting an employee’s ability to accrue ESST is prohibited.
The rules also provide additional guidance regarding employee eligibility and the administration of ESST. Employers must determine in “good faith” whether an employee is expected to work at least 80 hours in Minnesota during the year and therefore qualifies for ESST. Importantly, ESST applies to any employee who works 80 hours, even if previously expected to work below that threshold. DLI further clarifies how ESST should be credited each pay period, addresses the treatment of exempt employees and employees working indeterminate-length shifts, and establishes requirements for employers that advance ESST, including when additional leave must be provided if an employee ultimately works more hours than anticipated. The rules also confirm that employees rehired within 180 days...
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