HF 3882

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 02/28/2024 05:57pm

A bill for an act
relating to employees; modifying earned sick and safe time; authorizing rulemaking;
amending Minnesota Statutes 2023 Supplement, sections 177.27, subdivision 4;
177.50, by adding subdivisions; 181.032; 181.9445, subdivisions 4, 5; 181.9446;
181.9447, subdivisions 1, 3, 5, 10, 11; 181.9448, subdivisions 1, 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 4, is amended
to read:

Subd. 4.

Compliance orders.

The commissioner may issue an order requiring an
employer to comply with sections 177.21 to 177.435, new text begin 177.50, new text end 179.86, 181.02, 181.03,
181.031, 181.032, 181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.165, 181.172,
paragraph (a) or (d), 181.214 to 181.217, 181.275, subdivision 2a, 181.635, 181.722, 181.79,
181.85 to 181.89, 181.939 to 181.943, 181.9445 to 181.9448, 181.987, 181.991, 268B.09,
subdivisions 1 to 6, and 268B.14, subdivision 3, with any rule promulgated under section
177.28, 181.213, or 181.215. The commissioner shall issue an order requiring an employer
to comply with sections 177.41 to 177.435, 181.165, or 181.987 if the violation is repeated.
For purposes of this subdivision only, a violation is repeated if at any time during the two
years that preceded the date of violation, the commissioner issued an order to the employer
for violation of sections 177.41 to 177.435, 181.165, or 181.987 and the order is final or
the commissioner and the employer have entered into a settlement agreement that required
the employer to pay back wages that were required by sections 177.41 to 177.435. The
department shall serve the order upon the employer or the employer's authorized
representative in person or by certified mail at the employer's place of business. An employer
who wishes to contest the order must file written notice of objection to the order with the
commissioner within 15 calendar days after being served with the order. A contested case
proceeding must then be held in accordance with sections 14.57 to 14.69 or 181.165. If,
within 15 calendar days after being served with the order, the employer fails to file a written
notice of objection with the commissioner, the order becomes a final order of the
commissioner. For the purposes of this subdivision, an employer includes a contractor that
has assumed a subcontractor's liability within the meaning of section 181.165.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 177.50, is amended by adding a
subdivision to read:

new text begin Subd. 6. new text end

new text begin Rulemaking authority. new text end

new text begin The commissioner may adopt rules to carry out the
purposes of this section and sections 181.9445 to 181.9448.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 177.50, is amended by adding a
subdivision to read:

new text begin Subd. 7. new text end

new text begin Remedies. new text end

new text begin (a) If an employer does not provide earned sick and safe time
pursuant to section 181.9446, or does not allow the use of earned sick and safe time pursuant
to section 181.9447, the employer is liable to all employees who were not provided or not
allowed to use earned sick and safe time for an amount equal to all earned sick and safe
time that should have been provided or could have been used at the employee's regular rate
of pay, plus an additional equal amount as liquidated damages.
new text end

new text begin (b) If the employer does not possess records sufficient to determine the earned sick and
safe time an employee should have been provided pursuant to paragraph (a), the employer
is liable to the employee for an amount equal to 48 hours of earned sick and safe time at
the employee's regular rate of pay for each year earned sick and safe time was not provided,
plus an additional equal amount as liquidated damages.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2023 Supplement, section 181.032, is amended to read:

181.032 REQUIRED STATEMENT OF EARNINGS BY EMPLOYER; NOTICE
TO EMPLOYEE.

(a) At the end of each pay period, the employer shall provide each employee an earnings
statement, either in writing or by electronic means, covering that pay period. An employer
who chooses to provide an earnings statement by electronic means must provide employee
access to an employer-owned computer during an employee's regular working hours to
review and print earnings statements, and must make statements available for review or
printing for a period of three years.

(b) The earnings statement may be in any form determined by the employer but must
include:

(1) the name of the employee;

(2) the rate or rates of pay and basis thereof, including whether the employee is paid by
hour, shift, day, week, salary, piece, commission, or other method;

(3) allowances, if any, claimed pursuant to permitted meals and lodging;

(4) the total number of hours worked by the employee unless exempt from chapter 177;

deleted text begin (5) the total number of earned sick and safe time hours accrued and available for use
under section 181.9446;
deleted text end

deleted text begin (6) the total number of earned sick and safe time hours used during the pay period under
section 181.9447;
deleted text end

deleted text begin (7) deleted text end new text begin (5) new text end the total amount of gross pay earned by the employee during that period;

deleted text begin (8) deleted text end new text begin (6) new text end a list of deductions made from the employee's pay;

deleted text begin (9) deleted text end new text begin (7) new text end any amount deducted by the employer under section 268B.14, subdivision 3, and
the amount paid by the employer based on the employee's wages under section 268B.14,
subdivision 1;

deleted text begin (10) deleted text end new text begin (8) new text end the net amount of pay after all deductions are made;

deleted text begin (11) deleted text end new text begin (9) new text end the date on which the pay period ends;

deleted text begin (12) deleted text end new text begin (10) new text end the legal name of the employer and the operating name of the employer if
different from the legal name;

deleted text begin (13) deleted text end new text begin (11) new text end the physical address of the employer's main office or principal place of business,
and a mailing address if different; and

deleted text begin (14) deleted text end new text begin (12) new text end the telephone number of the employer.

(c) An employer must provide earnings statements to an employee in writing, rather
than by electronic means, if the employer has received at least 24 hours notice from an
employee that the employee would like to receive earnings statements in written form. Once
an employer has received notice from an employee that the employee would like to receive
earnings statements in written form, the employer must comply with that request on an
ongoing basis.

(d) At the start of employment, an employer shall provide each employee a written notice
containing the following information:

(1) the rate or rates of pay and basis thereof, including whether the employee is paid by
the hour, shift, day, week, salary, piece, commission, or other method, and the specific
application of any additional rates;

(2) allowances, if any, claimed pursuant to permitted meals and lodging;

(3) paid vacation, sick time, or other paid time-off accruals and terms of use;

(4) the employee's employment status and whether the employee is exempt from minimum
wage, overtime, and other provisions of chapter 177, and on what basis;

(5) a list of deductions that may be made from the employee's pay;

(6) the number of days in the pay period, the regularly scheduled pay day, and the pay
day on which the employee will receive the first payment of wages earned;

(7) the legal name of the employer and the operating name of the employer if different
from the legal name;

(8) the physical address of the employer's main office or principal place of business, and
a mailing address if different; and

(9) the telephone number of the employer.

(e) The employer must keep a copy of the notice under paragraph (d) signed by each
employee acknowledging receipt of the notice. The notice must be provided to each employee
in English. The English version of the notice must include text provided by the commissioner
that informs employees that they may request, by indicating on the form, the notice be
provided in a particular language. If requested, the employer shall provide the notice in the
language requested by the employee. The commissioner shall make available to employers
the text to be included in the English version of the notice required by this section and assist
employers with translation of the notice in the languages requested by their employees.

(f) An employer must provide the employee any written changes to the information
contained in the notice under paragraph (d) prior to the date the changes take effect.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2023 Supplement, section 181.9445, subdivision 4, is amended
to read:

Subd. 4.

Earned sick and safe time.

"Earned sick and safe time" means leave, including
paid time off and other paid leave systems, that is paid at the deleted text begin same hourly rate as an employee
earns from employment deleted text end new text begin employee's regular rate of pay new text end that may be used for the same
purposes and under the same conditions as provided under section 181.9447, but in no case
shall this deleted text begin hourly deleted text end rate be less than that provided under section 177.24 or an applicable local
minimum wage.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2023 Supplement, section 181.9445, subdivision 5, is amended
to read:

Subd. 5.

Employee.

"Employee" means any person who is employed by an employer,
including temporary and part-time employees, who deleted text begin performs deleted text end new text begin is anticipated by the employer
to perform new text end work for at least 80 hours in a year for that employer in Minnesota. Employee
does not include deleted text begin :
deleted text end

deleted text begin (1) deleted text end an independent contractor deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (2) an individual employed by an air carrier as a flight deck or cabin crew member who:
deleted text end

deleted text begin (i) is subject to United States Code, title 45, sections 181 to 188;
deleted text end

deleted text begin (ii) works less than a majority of their hours in Minnesota in a calendar year; and
deleted text end

deleted text begin (iii) is provided with paid leave equal to or exceeding the amounts in section deleted text end deleted text begin .
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2023 Supplement, section 181.9446, is amended to read:

181.9446 ACCRUAL OF EARNED SICK AND SAFE TIME.

(a) An employee accrues a minimum of one hour of earned sick and safe time for every
30 hours worked up to a maximum of 48 hours of earned sick and safe time in a year.
Employees may not accrue more than 48 hours of earned sick and safe time in a year unless
the employer agrees to a higher amount.

(b)(1) Except as provided in clause (2), employers must permit an employee to carry
over accrued but unused sick and safe time into the following year. The total amount of
accrued but unused earned sick and safe time for an employee must not exceed 80 hours at
any time, unless an employer agrees to a higher amount.

(2) In lieu of permitting the carryover of accrued but unused sick and safe time into the
following year as provided under clause (1), an employer may provide an employee with
earned sick and safe time for the year that meets or exceeds the requirements of this section
that is available for the employee's immediate use at the beginning of the subsequent year
as follows: (i) 48 hours, if an employer pays an employee for accrued but unused sick and
safe time at the end of a year at the deleted text begin same hourly rate as an employee earns from employment deleted text end new text begin
employee's regular rate of pay and in no case at a rate less than that provided under section
177.24 or an applicable local minimum wage new text end ; or (ii) 80 hours, if an employer does not pay
an employee for accrued but unused sick and safe time at the end of a year deleted text begin at the same or
greater hourly rate as an employee earns from employment. In no case shall this hourly rate
be less than that provided under section 177.24, or an applicable local minimum wage deleted text end .

(c) Employees who are exempt from overtime requirements under United States Code,
title 29, section 213(a)(1), as amended through January 1, 2024, are deemed to work 40
hours in each workweek for purposes of accruing earned sick and safe time, except that an
employee whose normal workweek is less than 40 hours will accrue earned sick and safe
time based on the normal workweek.

(d) Earned sick and safe time under this section begins to accrue at the commencement
of employment of the employee.

(e) Employees may use earned sick and safe time as it is accrued.

Sec. 8.

Minnesota Statutes 2023 Supplement, section 181.9447, subdivision 1, is amended
to read:

Subdivision 1.

Eligible use.

An employee may use accrued earned sick and safe time
for:

(1) an employee's:

(i) mental or physical illness, injury, or other health condition;

(ii) need for medical diagnosis, care, or treatment of a mental or physical illness, injury,
or health condition; deleted text begin or
deleted text end

(iii) need for preventive medical or health care; new text begin or
new text end

new text begin (iv) need to make arrangements for or attend funeral services or a memorial, or address
financial or legal matters that arise after the death of a family member;
new text end

(2) care of a family member:

(i) with a mental or physical illness, injury, or other health condition;

(ii) who needs medical diagnosis, care, or treatment of a mental or physical illness,
injury, or other health condition; or

(iii) who needs preventive medical or health care;

(3) absence due to domestic abuse, sexual assault, or stalking of the employee or
employee's family member, provided the absence is to:

(i) seek medical attention related to physical or psychological injury or disability caused
by domestic abuse, sexual assault, or stalking;

(ii) obtain services from a victim services organization;

(iii) obtain psychological or other counseling;

(iv) seek relocation or take steps to secure an existing home due to domestic abuse,
sexual assault, or stalking; or

(v) seek legal advice or take legal action, including preparing for or participating in any
civil or criminal legal proceeding related to or resulting from domestic abuse, sexual assault,
or stalking;

(4) closure of the employee's place of business due to weather or other public emergency
or an employee's need to care for a family member whose school or place of care has been
closed due to weather or other public emergency;

(5) the employee's inability to work or telework because the employee is: (i) prohibited
from working by the employer due to health concerns related to the potential transmission
of a communicable illness related to a public emergency; or (ii) seeking or awaiting the
results of a diagnostic test for, or a medical diagnosis of, a communicable disease related
to a public emergency and such employee has been exposed to a communicable disease or
the employee's employer has requested a test or diagnosis; and

(6) when it has been determined by the health authorities having jurisdiction or by a
health care professional that the presence of the employee or family member of the employee
in the community would jeopardize the health of others because of the exposure of the
employee or family member of the employee to a communicable disease, whether or not
the employee or family member has actually contracted the communicable disease.

For the purposes of this subdivision, a public emergency shall include a declared
emergency as defined in section 12.03 or a declared local emergency under section 12.29.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2023 Supplement, section 181.9447, subdivision 3, is amended
to read:

Subd. 3.

Documentation.

(a) When an employee uses earned sick and safe time for
more than three consecutive new text begin scheduled work new text end days, an employer may require reasonable
documentation that the earned sick and safe time is covered by subdivision 1.

(b) For earned sick and safe time under subdivision 1, clauses (1), (2), (5), and (6),
reasonable documentation may include a signed statement by a health care professional
indicating the need for use of earned sick and safe time. However, if the employee or
employee's family member did not receive services from a health care professional, or if
documentation cannot be obtained from a health care professional in a reasonable time or
without added expense, then reasonable documentation for the purposes of this paragraph
may include a written statement from the employee indicating that the employee is using
or used earned sick and safe time for a qualifying purpose covered by subdivision 1, clause
(1), (2), (5), or (6).

(c) For earned sick and safe time under subdivision 1, clause (3), an employer must
accept a court record or documentation signed by a volunteer or employee of a victims
services organization, an attorney, a police officer, or an antiviolence counselor as reasonable
documentation. new text begin If documentation cannot be obtained in a reasonable time or without added
expense, then reasonable documentation for the purposes of this paragraph may include a
written statement from the employee indicating that the employee is using or used earned
sick and safe time for a qualifying purpose covered under subdivision 1, clause (3).
new text end

(d) For earned sick and safe time to care for a family member under subdivision 1, clause
(4), an employer must accept as reasonable documentation a written statement from the
employee indicating that the employee is using or used earned sick and safe time for a
qualifying purpose as reasonable documentation.

(e) An employer must not require disclosure of details relating to domestic abuse, sexual
assault, or stalking or the details of an employee's or an employee's family member's medical
condition as related to an employee's request to use earned sick and safe time under this
section.

(f) Written statements by an employee may be written in the employee's first language
and need not be notarized or in any particular format.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2023 Supplement, section 181.9447, subdivision 5, is amended
to read:

Subd. 5.

Increment of time used.

Earned sick and safe time may be used in the deleted text begin smallest
increment of time tracked by the employer's payroll system, provided such increment is not
more than four hours deleted text end new text begin same increment of time for which employees are paid, provided an
employer is not required to provide leave in less than 15-minute increments nor can the
employer require use of earned sick and safe time in more than four-hour increments new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Minnesota Statutes 2023 Supplement, section 181.9447, subdivision 10, is amended
to read:

Subd. 10.

Employer records new text begin and required statement to employees new text end .

(a) Employers
shall retain accurate records documenting hours worked by employees and earned sick and
safe time taken and comply with all requirements under section 177.30.

new text begin (b) At the end of each pay period, the employer shall provide, in writing or electronically,
information stating the employee's current amount of:
new text end

new text begin (1) the total number of earned sick and safe time hours available to the employee for
use under section 181.9446; and
new text end

new text begin (2) the total number of earned sick and safe time hours used during the pay period under
section 181.9447.
new text end

new text begin Employers may choose a reasonable system for providing this information, including
but not limited to listing information on or attached to each earnings statement or an
electronic system where employees can access this information. An employer who chooses
to provide this information by electronic means must provide employee access to an
employer-owned computer during an employee's regular working hours to review and print.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end An employer must allow an employee to inspect records required by this section
and relating to that employee at a reasonable time and place.

new text begin (d) The records required by this section must be kept for three years.
new text end

new text begin (e) All records required to be kept under this section must be readily available for
inspection by the commissioner upon demand. The records must be either kept at the place
where employees are working or kept in a manner that allows the employer to comply with
this paragraph within 72 hours.
new text end

Sec. 12.

Minnesota Statutes 2023 Supplement, section 181.9447, subdivision 11, is amended
to read:

Subd. 11.

Confidentiality and nondisclosure.

(a) If, in conjunction with this section,
an employer possesses:

(1) health or medical information regarding an employee or an employee's family
member;

(2) information pertaining to domestic abuse, sexual assault, or stalking;

(3) information that the employee has requested or obtained leave under this section; or

(4) any written or oral statement, documentation, record, or corroborating evidence
provided by the employee or an employee's family member, the employer must treat such
information as confidential.

Information given by an employee may only be disclosed by an employer if the disclosure
is requested or consented to by the employee, when ordered by a court or administrative
agency, or when otherwise required by federal or state law.

(b) Records and documents relating to medical certifications, recertifications, or medical
histories of employees or family members of employees created for purposes of section
177.50 or sections 181.9445 to 181.9448 must be maintained as confidential medical records
separate from the usual personnel files. At the request of the employee, the employer must
destroy or return the records required by sections 181.9445 to 181.9448 that are older than
three years prior to the current calendar year new text begin , unless state or federal law, rule, or regulation
requires the employer to retain such records new text end .

(c) Employers may not discriminate against any employee based on records created for
the purposes of section 177.50 or sections 181.9445 to 181.9448.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13.

Minnesota Statutes 2023 Supplement, section 181.9448, subdivision 1, is amended
to read:

Subdivision 1.

No effect on more generous sick and safe time policies.

(a) Nothing
in sections 181.9445 to 181.9448 shall be construed to discourage employers from adopting
or retaining earned sick and safe time policies that meet or exceed, and do not otherwise
conflict with, the minimum standards and requirements provided in sections 181.9445 to
181.9448 new text begin , provided that all time provided to an employee by an employer for absences from
work due to personal illness or injury, but not including short-term or long-term disability
or other salary continuation benefits, meet or exceed the minimum standards and requirements
provided in sections 181.9445 to 181.9448 new text end .

(b) Nothing in sections 181.9445 to 181.9448 shall be construed to limit the right of
parties to a collective bargaining agreement to bargain and agree with respect to earned sick
and safe time policies or to diminish the obligation of an employer to comply with any
contract, collective bargaining agreement, or any employment benefit program or plan that
meets or exceeds, and does not otherwise conflict with, the minimum standards and
requirements provided in this section.

(c) Nothing in sections 181.9445 to 181.9448 shall be construed to preempt, limit, or
otherwise affect the applicability of any other law, regulation, requirement, policy, or
standard that provides for a greater amount, accrual, or use by employees of paid sick and
safe time or that extends other protections to employees.

(d) Nothing in sections 181.9445 to 181.9448 shall be construed or applied so as to
create any power or duty in conflict with federal law.

(e) Employers who provide earned sick and safe time to their employees under a paid
time off policy or other paid leave policy that may be used for the same purposes and under
the same conditions as earned sick and safe time, and that meets or exceeds, and does not
otherwise conflict with, the minimum standards and requirements provided in sections
181.9445 to 181.9448 are not required to provide additional earned sick and safe time.

(f) The provisions of sections 181.9445 to 181.9448 may be waived by a collective
bargaining agreement with a bona fide building and construction trades labor organization
that has established itself as the collective bargaining representative for the affected building
and construction industry employees, provided that for such waiver to be valid, it shall
explicitly reference sections 181.9445 to 181.9448 and clearly and unambiguously waive
application of those sections to such employees.

new text begin (g) An individual provider, as defined in section 256B.0711, subdivision 1, paragraph
(d), who provides services through a consumer support grant under section 256.476,
consumer-directed community supports under section 256B.4911, or community first services
and supports under section 256B.85, to a family member who is a participant, as defined
in section 256B.0711, subdivision 1, paragraph (e), may individually waive the provisions
of sections 181.9445 to 181.9448 for the remainder of the participant's service plan year,
provided that the funds are returned to the participant's budget. Once an individual provider
has waived the provisions of sections 181.9445 to 181.9448, they may not accrue earned
sick and safe time until the start of the participant's next service plan year.
new text end

deleted text begin (g) deleted text end new text begin (h) new text end Sections 181.9445 to 181.9448 do not prohibit an employer from establishing a
policy whereby employees may donate unused accrued sick and safe time to another
employee.

deleted text begin (h) deleted text end new text begin (i) new text end Sections 181.9445 to 181.9448 do not prohibit an employer from advancing sick
and safe time to an employee before accrual by the employee.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14.

Minnesota Statutes 2023 Supplement, section 181.9448, subdivision 2, is amended
to read:

Subd. 2.

Termination; separation; transfer.

Sections 181.9445 to 181.9448 do not
require financial or other reimbursement to an employee from an employer upon the
employee's termination, resignation, retirement, or other separation from employment for
accrued earned sick and safe time that has not been used. If an employee is transferred to
a separate division, entity, or location, but remains employed by the same employer, the
employee is entitled to all earned sick and safe time accrued at the prior division, entity, or
location and is entitled to use all earned sick and safe time as provided in sections 181.9445
to 181.9448. When there is a separation from employment and the employee is rehired
within 180 days of separation by the same employer, previously accrued earned sick and
safe time that had not been used new text begin or otherwise disbursed to the benefit of the employee upon
separation new text end must be reinstated. An employee is entitled to use accrued earned sick and safe
time and accrue additional earned sick and safe time at the commencement of reemployment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end