On February 8, 2023, the Minnesota Supreme Court issued its first significant decision interpreting the state’s employment discrimination law, the Minnesota Human Rights Act (MHRA), in three years. In a ruling that will likely be hailed as a victory by employees and employers alike, the supreme court clarified the law on several issues.
Minnesota’s 2023 legislative session is off to a hot start and turning out to be an important one for Minnesota employers and companies doing business in Minnesota. Currently, there are four noteworthy bills that employers should keep an eye on as they progress through the Minnesota Legislature.
On February 1, 2023, Minnesota governor Tim Walz signed a law to prohibit discrimination based on hair texture and hair styles, adding Minnesota to the growing list of states to enact such legislation, commonly referred to as the “CROWN Act.”
Several state and local minimum wage rates will increase in 2023, with a majority of the changes effective on January 1, 2023. The following chart lists state and certain major locality minimum wage increases for 2023—and future years, if available—along with the related changes in the maximum tip credit and minimum cash wage for tipped employees.
Every year, the commissioner of the Minnesota Department of Labor and Industry announces the inflation-adjusted minimum wage rate.
On June 2, 2022, Minnesota Governor Tim Walz signed House File (H.F.) 4065 into law, a measure that provides clarity regarding hemp-derived consumables stemming from the Agriculture Improvement Act of 2018, also known as the 2018 Farm Bill.
Remote work has exploded since the COVID-19 pandemic began, with some employers hiring employees to work remotely anywhere in the United States. With the recent economic downturn, layoffs are beginning to occur, and for the first time a significant number of remote employees may be included in layoffs. Layoffs of remote employees present unique legal hazards for employers.
On June 6, 2022, after a year of public meetings and feedback, the Bloomington City Council unanimously approved an ordinance that will require employers in the city to provide paid sick and safe leave to most workers.
Several state and local minimum wage rates will increase in the latter half of 2022, with most of these changes effective on July 1, 2022. Increases to minimum wage rates for nonexempt employees and tipped employees in Florida will occur later in the year, on September 30, 2022.
On June 7, 2022, the Minnesota Department of Labor and Industry (MNDOLI) issued its long-awaited approved employer notice regarding requirements under the Frontline Worker Pay Law.
As expected, the Minnesota Department of Labor and Industry recently provided an update regarding the new Frontline Worker Pay Law by distributing a fact sheet and a set of answers to frequently asked questions (FAQs).
On April 29, 2022, Minnesota Governor Tim Walz signed Senate File (S.F.) No. 2677 into law, replenishing the state unemployment coffers and authorizing payments to various frontline workers. This new law requires Minnesota employers to provide notice to eligible frontline workers regarding potential additional benefits available to them.
The Minnesota Legislature, currently in regular session until mid- to late May 2022, has drafted various bills that may impact Minnesota employers and employees. Notably, some of the major bills under consideration (or already enacted) include a hair antidiscrimination bill, a measure extending the COVID-19 presumption of workers’ compensation eligibility for certain healthcare workers, and a proposal to restrict noncompete agreements.
On February 4, 2022, Governor Tim Walz signed House File (H.F.) 1203 into law, which extends the presumption that certain frontline healthcare workers contracted COVID-19 at work if they test positive. The prior presumption had expired on December 31, 2021.
On January 13, 2022, in Waters v. Day & Zimmermann NPS, Inc., the First Circuit Court of Appeals became the third federal appellate court to address the application of the Supreme Court of the United States’ decision in Bristol-Myers Squibb Co. v. Superior Court of California to Fair Labor Standards Act (FLSA) collective actions. Unlike the Sixth Circuit Court of Appeals and the Eighth Circuit Court of Appeals, however, the First Circuit concluded that a federal court does have personal jurisdiction over claims asserted by nonresident opt-in plaintiffs. The First Circuit’s decision thus creates a split among federal appeals courts and raises the prospect that the Supreme Court will ultimately have to resolve the issue.
On January 12, 2022, just one week after issuing mask mandates, Minneapolis Mayor Jacob Frey and St. Paul Mayor Melvin Carter issued executive orders mandating that places of public accommodation serving food and drinks indoors require persons to furnish proof of vaccination or negative PCR or antigen tests. Then, on January 13, 2022, and January 14, 2022, respectively, Mayor Carter and Mayor Frey each issued additional emergency regulations amending their January 12, 2022, orders.
Minnesota’s Occupational Safety Administration (MNOSHA) adopted the federal Occupational Safety Health Administration’s (OSHA) COVID-19 Vaccination and Testing Emergency Temporary Standard (ETS) on January 3, 2022, and began enforcing the rules on January 10, 2022. Yesterday, the Supreme Court of the United stayed the enforcement of the ETS and remanded the case to the Sixth Circuit Court of Appeals, which will now consider the merits of the case.
As the mayors of Minneapolis and St. Paul did last week, Duluth’s mayor, Emily Larson, issued an indoor mask mandate, effective January 13, 2022, due to the spread of the COVID-19 Omicron variant.
On January 3, 2022, Minnesota’s Occupational Safety and Health Administration (MNOSHA) adopted the federal Occupational Safety and Health Administration’s (OSHA) COVID-19 Vaccination and Testing Emergency Temporary Standard (ETS) published on November 5, 2021.
As companies returned to work following the holidays, changes to Minnesota’s nursing mothers statute and pregnancy accommodations law (Minn. Stat. § 181.939) went into effect on January 1, 2022. Minnesota employers may want to take a moment to make sure their policies and practices are up to date.
On Wednesday, January 5, 2022, Mayor Jacob Frey of Minneapolis and Mayor Melvin Carter of St. Paul, Minnesota, issued indoor mask mandates for their cities due to the rapid spread of the COVID-19 Omicron variant, which currently accounts for approximately 68 percent of cases in Minnesota (and rising).
In 2022, while the federal minimum wage will remain at $7.25 per hour for non-tipped employees and $2.13 per hour for tipped employees, several states’ minimum wage rates will increase. The chart below lists the state (and certain major locality) minimum wage rate increases for 2022—and future years if available—along with the related changes in the maximum tip credit and minimum cash wage for tipped employees.
In a November 30, 2021, order, a federal judge sitting in Louisiana entered a nationwide preliminary injunction against the Biden administration’s Centers for Medicare and Medicaid Services’ (CMS) interim final rule entitled “Medicare and Medicaid Programs; Omnibus COVID-19 Health Care Staff Vaccination.” The effect of the order is that CMS must immediately “cease all implementation or enforcement of the [CMS] Rule” in the remaining 40 states not covered by an earlier November 29, 2021, order from a federal judge sitting in Missouri that prevented implementation and enforcement of the CMS rule in only 10 states.
On August 11, 2021, the Minnesota Supreme Court issued a decision of significance to any owner or manager of residential properties in Minnesota that employs live-in caretakers or property managers. The court confirmed that such businesses and their live-in employees may enter into agreements that include the payment of rent credits toward employees’ wages, as long as those agreements comply with certain legal requirements.
States have been busy when it comes to marijuana laws. Before the mid-2010s, employers tended not to worry about state marijuana laws because of marijuana’s illegal status under federal law. However, those days are over, and state marijuana legalization laws continue to affect how employers can run their workplaces.
Hospitality and event center workers received additional job rights protection under a new ordinance passed by the Minneapolis City Council. The new ordinance requires employers to recall those workers, if and when they are needed in reverse order of seniority. Ordinance No.2021-12, entitled “Hospitality Worker Right to Recall,” seeks to minimize the impact on affected employees in an industry particularly hard-hit by the COVID-19 pandemic and to stabilize the workforce.
On March 12, 2021, Minnesota Governor Tim Walz dialed back Minnesota’s COVID-19–related restrictions by issuing Emergency Executive Order (EO) 21-11, “Adjusting Limitations on Certain Activities and Taking Steps Forward.” Most provisions of the executive order went into effect on March 15, 2021, and relate to activities outside of the home, including relaxing restrictions on specific businesses (e.g., restaurants, bars, indoor gyms, and entertainment venues).
In November 2020, voters in five states (Arizona, Mississippi, Montana, New Jersey, and South Dakota) voted in favor of legalizing medical and/or recreational marijuana. Since then, there have been several developments within the marijuana legalization world that employers may want to keep an eye on as they move forward in 2021.
Minnesota employers will be heading back to the drawing board to revise their handbook disclaimers. The Minnesota Supreme Court now requires specific language in policies that set out the terms and conditions for payment of certain employee benefits such as payouts of vacation and paid time off (PTO).
Several states’ minimum wage rates will increase in 2021. The following chart lists the state (and certain major locality) minimum wage increases for 2021—and future years, if available—along with the related changes in the maximum tip credit and minimum cash wage for tipped employees.
