Minnesota Labor Law Guide

Minnesota has a mix of industries contributing to its economic growth, like healthcare, technology, manufacturing, agriculture, and finance. Minnesota has a highly educated and skilled workforce, supported by a strong education system. Minnesota provides various incentives for businesses, including tax credits, grants, and loans.

Minnesota State Labor Laws

Minimum Wage

$10.59

Overtime Wage

$1.5x Regular Wages

Meal Breaks

Not mandated

Rest Breaks

Paid if 20 minutes or less

Minimum Wage Mandates

The minimum wage in the state of Minnesota is $10.59 per hour for large employers (those employing 100 or more workers) as of January 2023. It will increase to $10.85 per hour in January 2024. 

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Minimum wage for small employers is $8.63 per hour, which will increase to $8.85 per hour in January 2024.

The city of Minneapolis has its own minimum wage. As of January 2023, the minimum wage in Minneapolis for large employers is $15.19 per hour. It will increase to $15.57 on January 1, 2024 for large employers and on July 1, 2024 for all employers.

Read more about minimum wage laws in Minnesota and other US states.

Overtime Rules

Minnesota has its own state overtime rules. The federal labor rules are also applicable in the state. The employers must follow the rules that are most favorable to the employees.

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Non-exempt employees in In Minnesota are generally entitled to overtime pay at a rate of 1.5 times their regular hourly rate for hours worked above 48 hours in a workweek. Under federal law, overtime is typically required for hours worked beyond 40 in a workweek.

Exempt employees are not eligible for overtime pay. Exempt employees are typically salaried employees who meet specific criteria related to their job duties and salary.

Meal and Rest Breaks

Minnesota does not have any state laws that require employers to provide meal or rest breaks to employees. Therefore, the employers in Minnesota need to follow the federal regulations regarding meal and rest breaks as outlined in the Fair Labor Standards Act (FLSA).

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The FLSA does not require employers to provide meal breaks. However, if an employer gives 30-minutes or longer meal breaks during which time the employee is completely relieved of duties, then the meal break is typically unpaid.

The FLSA also does not mandate rest breaks. However, short breaks up to 20 minutes during the workday are generally considered paid work time.

If you employ young workers, you will need to follow federal laws that govern young employees. The law requires employers to provide meal and rest breaks to young employees. 

Paid Leaves and time off rules in the state of Minnesota

Minnesota does not have a statewide mandatory paid leave law applicable to all private employers. However, there are certain provisions and requirements related to unpaid leave and specific types of leave in the state.

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  • Family and Medical Leave Act (FMLA): Covered employers in Minnesota, as in the rest of the United States, must comply with the federal FMLA, which provides eligible employees with up to 12 weeks of unpaid leave in a 12-month period for certain qualifying reasons, including the birth or adoption of a child, serious health conditions, or the need to care for a family member with a serious health condition.
  • Minnesota Parental Leave Act (MPLA): The MPLA requires employers with 21 or more employees to provide eligible employees with up to 12 weeks of unpaid leave for the birth or adoption of a child.
  • The cities of Minneapolis and St. Paul have enacted ordinances requiring employers to provide paid sick leave to employees who work within those cities. The requirements vary, but generally, employees accrue paid sick time based on hours worked.
  • Some employers outside of Minneapolis and St. Paul may also be subject to the state’s Earned Sick and Safe Time (ESST) law, which requires employers to provide earned sick and safe time to eligible employees.
Exempt vs. Non-Exempt Classification

Minnesota follows federal guidelines in classifying employees as exempt or non-exempt from minimum wage and overtime provisions under the Fair Labor Standards Act (FLSA).

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Exempt Employees:

  • Salary Basis Test: Exempt employees are typically paid on a salary basis, meaning they receive a fixed salary that is not subject to reduction based on the quality or quantity of work performed.
  • Salary Level Test: Exempt employees must earn a minimum salary to qualify for exemption. The minimum salary for exemption is $684 per week.
  • Duties Test: Exempt employees must perform specific job duties that fall into one of the FLSA’s exempt categories, such as executive, administrative, professional, or certain computer-related duties.

Non-Exempt Employees:

  • Hourly Pay: Non-exempt employees are typically paid on an hourly basis and are entitled to overtime pay for hours worked beyond 40 hours in a workweek.
  • Overtime Pay: Overtime pay for non-exempt employees is generally calculated at 1.5 times their regular rate of pay for each hour worked beyond 40 hours in a workweek.
  • Employers must keep accurate records of non-exempt employees’ hours worked, wages paid, and other related information.
Equal Pay Act

Minnesota has its own state-specific Equal Pay Act, which is designed to address and remedy wage disparities based on gender. The Minnesota Equal Pay Act (MEPA) seeks to ensure equal pay for equal work and prohibits wage discrimination based on gender. Here are key points regarding the Minnesota Equal Pay Act:

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  • Equitable Work: The law requires that men and women be paid equally for comparable work. This is not limited to identical job titles, but extends to work that is substantially similar in skill, effort, responsibility, and working conditions.
  • Employers are prohibited from discriminating against employees in terms of wages or other compensation based on gender.
  • The law prohibits employers from retaliating against employees for asserting their rights under MEPA.
  • Employers are required to maintain records of job classifications and wage rates, job evaluations, and other materials that explain the basis for wage differentials.
  • Employees who believe they have been subjected to wage discrimination in violation of MEPA have a private right of action and may file a civil lawsuit against their employer.
Rules for hiring and firing employees in the state of Minnesota

Minnesota has its own rules and regulations about hiring and firing of employees. These regulations cover various aspects, including anti-discrimination laws, at-will employment, background checks, and final pay requirements.

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These laws are in addition to the applicable federal laws. Employers must comply with both the state and federal laws in the state of Minnesota.

  • At-Will Employment: Minnesota follows the doctrine of at-will employment. Under this, the employment relationships can be terminated by either party at any time, with or without cause, and with or without notice.
  • While at-will employment allows for termination without cause, the laws protect employees from termination for illegal reasons, such as discrimination, retaliation, or in violation of public policy.
  • Minnesota has robust anti-discrimination laws that prohibit discrimination in employment based on various protected characteristics, including race, color, creed, religion, national origin, sex, marital status, familial status, disability, age, or status with regard to public assistance.
  • Employers must comply with state and federal laws when conducting background checks on potential employees. The Minnesota Human Rights Act places certain limitations on the use of criminal history information in employment decisions.
  • Employers may choose to use employment contracts to establish the terms and conditions of employment. It’s important to clearly outline the terms and obligations of both the employer and employee.
  • Equal Employment Opportunity (EEO). Employers should provide equal employment opportunities to all individuals regardless of their protected characteristics, and hiring decisions should be made based on merit and job-related criteria.
  • Work Eligibility Verification: All employers in Minnesota are required to verify the work eligibility of employees through the Form I-9 process in compliance with federal immigration laws.
  • Employers are prohibited from terminating employees based on protected characteristics, such as race, gender, age, disability, or other factors covered by anti-discrimination laws. Retaliation against employees exercising their legal rights is also prohibited.
  • Final Paychecks: Minnesota law requires employers to pay an employee’s final wages, including any unused vacation pay, on the next regularly scheduled payday.
  • Unemployment Compensation: Terminated employees may be eligible for unemployment benefits through the Minnesota Department of Employment and Economic Development (DEED).
  • Employees generally have the right to inspect their own personnel records within a reasonable time after making a request.
  • WARN Act: The federal Worker Adjustment and Retraining Notification (WARN) Act may apply to employers with 100 or more employees, requiring them to provide advance notice of plant closings or mass layoffs.

It is important for employers to remain well-informed about changes in employment laws and to seek guidance from legal professionals to ensure compliance with the latest regulations. It’s advisable to establish clear and meticulously documented employment policies and procedures to aid employers in complying with the labor laws.

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