As expected, several bills have been introduced in the Minnesota House this session related to wage and hour issues. However, given we are the only state in the nation to currently have a split state legislature (Democrats control the House, while the Republicans control the Senate), it’s doubtful that any of these will actually get
Wage and Hour Preparations for the New Year
As 2018 comes to a close, it is a great time for employers to address lingering issues that have been on the back burner and start “fresh” in the new year. A new year is a great time to roll out changes for both administration purposes and for employees; new year, new policies. Here are
Holiday Pay Considerations – Overtime and More
With Thanksgiving tomorrow and Christmas right around the corner, employees start to question holiday time off and pay (or lack thereof). In Minnesota, there is no requirement that employers provide certain days off, with or without pay. Accordingly, employers just need to follow their policy (best practices – have it written), whatever it is. If
DOL Opinion Letter: Organ Donation Surgery Qualifies For FMLA Leave
According to Donate Life America, every 10 minutes another person is added to the waiting list for an organ. Twenty-two (22) people die each day waiting, and yet one organ/eye/tissue donor can save and heal more than 75 lives. According to the United Network for Organ Sharing, 114,370 people are currently waiting for
Employers May Freeze Attendance Points During FMLA Leave – With Caution
The U.S. Department of Labor’s August 28, 2018 Opinion Letter FMLA2018-1-A confirms that, in certain circumstances, an employer may “freeze” an employee’s attendance points during periods of Family Medical Leave Act (FMLA) leave. Attendance points are often used in a manufacturing or other settings when attendance is critical and HR needs a simple way to
US DOL Issues Six New Opinion Letters – First FMLA Guidance Since 2009
On August 28, 2018, the U.S. Department of Labor (DOL) issued 6 new opinion letters, 2 related to the FMLA which has not occurred since 2009. While I’ll write about them separately, this is exciting news! The letters provide employers with compliance assistance related to the administration of the Fair Labor Standards Act (FLSA) and
Minneapolis’ and St. Paul’s Sick and Safe Time Ordinances Updates
We are less than a month away from the 1-year anniversary of when the Minneapolis and Saint Paul sick and safe time ordinances went into effect. Both cities have recently released a tracking spreadsheet available to employers to compute and track accrual and use of sick and safe time hours. Minneapolis employers can use this
Duluth Passes Sick & Safe Time Ordinance
As expected, on May 29, 2018, the Duluth City Council voted to pass the Earned Sick and Safe Time Ordinance (“Ordinance”). The Ordinance currently mandates that employers (wherever located), with 5 or more employees, provide paid sick and safe leave to employees starting January 1, 2020. That being said, given the recent ruling on the Minneapolis Ordinance, I would not be surprised if Duluth’s Ordinance is challenged as well, and eventually limited to employers with a business in Duluth.
What Does the Duluth Earned Sick and Safe Time Ordinance Require?
Effective January 1, 2020 employers are required to provide employees with 1 hour of earned sick and safe time for every 50 hours worked, up to 64 hours per year. However, the Ordinance only allows employees to use up to 40 hours of accrued but unused sick and safe time each year. Alternatively, employers can comply with the Ordinance by front-loading at least 40 hours of earned sick and safe time following the initial 90 days of employment each year and again at the beginning of each subsequent year.
Accrual begins at the commencement of employment, or for current employees, January 1, 2020. If an employee has unused accrued sick and safe time at the end of the year, the employee may carry over 40 hours of accrued but unused sick and safe time into the next year. Employers are not required to payout the accrued but unused sick and safe time hours upon termination or other separation from employment (make sure your handbook is clear especially if you have different types of time off such as vacation, sick, etc.).
Employers must compensate employees at their standard hourly rate, or an equivalent rate for salaried employees. The Ordinance does not require compensation for lost tips or commissions.
Who Is An “Employer” and “Employee” Under the Ordinance?
All individuals, corporations, partnerships, associations, nonprofit organizations with 5 or more Employees (as defined below), are considered an “employer” under the Ordinance. The number of employees is calculated based on the average number of employees per week in the previous year. Temporary employees from a staffing agency are considered an employee of the staffing agency under the Ordinance. Notably, in an attempt to avoid challenges to the Ordinance similar to the ones that arose surrounding the Minneapolis Sick and Safe Time Ordinance, the Duluth Ordinance defines an “employee” as:
- A person working within the geographic boundaries of Duluth for more than 50% of the employee’s working time in a 12-month period, or
- “is based in the city of Duluth and spends a substantial part of his or her time working in the city and does not spend more than 50 percent of their work-time in a 12-month period in any other particular place.”
The Ordinance does not cover independent contractors, student interns, or seasonal employees.
Construction Company Opt-Out
Similar to the Minneapolis Ordinance, construction companies may opt to satisfy the requirements of the Ordinance by paying at least the prevailing wage rate (Minn. Stat. 177.42), or the rates set for in a registered apprenticeship agreement.
What If An Employer Already Offers Paid Time Off?
Minnesota District Court Rules on Applicability of Minneapolis Sick & Safe Leave Ordinance to Non-Minneapolis Employers
On Wednesday, May 9, 2018, the Minnesota District Court (Hennepin County) upheld the status quo (remember the temporary injunction I wrote about earlier), finally determining that state law does not preempt the Minneapolis Sick & Safe Leave Ordinance, but the Ordinance cannot be enforced by Minneapolis outside the geographic boundaries of the City of Minneapolis.
Duluth One Step Closer to Earned Sick & Safe Time Ordinance
Duluth is one step closer to passing its own Earned Sick & Safe Time ordinance (ESST), to go into effect January 1, 2020. Following in the footsteps of Minneapolis and St. Paul, Duluth’s proposed ordinance would require employers to provide employees with 1 hour of time off for every 50 hours worked. Employees would