As of January 1, 2024, employers in Minnesota are mandated to provide paid leave to all eligible employees.
The eligibility requirements are broad, as any employee who has worked a minimum of 80 hours in a year and is not an independent contractor qualifies for earned sick and safe time (ESST). This includes temporary and part-time employees.
Eligible employees begin accruing ESST on their first day of employment. They earn one hour of sick and safe time for every 30 hours worked, with the ability to accumulate at least 48 hours each year. Sick and safe time must be compensated at the same hourly rate as regular work hours.
For full details of the mandate, review the employment practices outlined by the Minnesota Department of Labor and Industry (DLI).
What This Means for You as an Employer
At the end of each pay period, employers are obligated to accurately track and report earned sick and safe time hours for every eligible employee. This includes:
- Total number of sick and safe time hours accrued and available for use
- Total number of sick and safe time hours used in the pay period
Employers are not required to provide this information in pay stubs; instead, they can use “an electronic system where employees can access this information.”
Minnesota employers are required to retain these records for three years. All this recordkeeping can be daunting—especially when you consider that recordkeeping violations will be subject to a penalty of up to $10,000 per failure, according to Mercer.
If employers have not properly automated their scheduling, absence tracking, and documentation processes, the mandate can be stressful for several reasons beyond the fine:
- Compliance complexity: Ensuring compliance with the intricate requirements of the mandate, including tracking accruals, managing usage, and providing appropriate notifications, can be challenging and time-consuming for employers.
- Administrative burden: The mandate adds an additional layer of administrative tasks for employers, such as accurately recording sick and safe time hours, updating policies and employee handbooks, and generating reports to demonstrate compliance.
- Financial impact: Providing paid leave to employees under the mandate can increase labor costs for employers, especially for small businesses or those operating on tight budgets.
- Operational disruptions: Managing employee absences due to sick or safe time can disrupt workflow and productivity, particularly for businesses with limited staffing or tight deadlines. Finding adequate coverage and maintaining business operations can be challenging for already strapped teams.
Ensure ESST Compliance With Indeavor
Indeavor’s automated scheduling software simplifies the process of tracking ESST. The solution is purpose-built for creating employee schedules that comply with state and federal regulations. Indeavor provides a comprehensive solution for tracking ESST by offering a user-friendly platform that automates the workflows with your pre-defined rules.
This saves time, reduces errors, and ensures compliance for employers while empowering employees with easy access to their rightful entitlements.
Automated Tracking
Indeavor’s system adeptly monitors assigned and actual work hours for employees, providing the essential data needed to calculate—and, most importantly, forecast—earned sick and safe time in compliance with applicable laws and regulations.
Customized Policies
The platform allows employers to set up customized sick and safe time policies tailored to their specific needs and requirements, including accrual rates, maximum limits, and usage conditions.
Real-Time Monitoring
Employers can monitor sick and safe time accruals and usage in real-time through intuitive reports, enabling them to stay informed, make data-driven decisions, and forecast anticipated absenteeism rates.
Seamless Integration
Indeavor seamlessly integrates with existing HR and payroll systems, streamlining data management and reducing administrative overhead associated with tracking ESST.
Employee Self-Service
Indeavor Engage offers self-service capabilities for employees, allowing them to view their accrued sick and safe time, submit requests, and track usage through a user-friendly portal, enhancing transparency and engagement. To fill sudden gaps in the schedule, employees can use Indeavor Engage to volunteer for extra shifts or swap shifts with the affected employee taking their earned time off.
Indeavor is committed to helping employers avoid preventable fines and employees enjoy their important earned leave. If you’re a Minnesota business looking to streamline recordkeeping, book a demo or give us a call today!
