MINNESOTA LABOR LAWS
Minimum Wage
Minnesota defers to the FLSA, which requires that all domestics, including companions, be paid at no less than the greater of the state or federal minimum wage.
Minnesota minimum wage is $8.85/hr.
- Minneapolis minimum wage is $15.57/hr.
- St. Paul minimum wage is $12.25/hr.
Overtime Pay
All live-out workers are to be paid an overtime differential of 1.5 times the hourly wage for hours over 40 in a 7 day week. Live-in domestics, including companions, must be paid the overtime differential for hours over 48 in a 7 day week. Overtime or premium pay is not required for hours worked in excess of 8 per day or on weekends or holidays.
Paid Time Off
Minnesota’s Sick and Safe Time law ensures employees have access to paid leave for health, safety, and emergencies. Employees are eligible if they are expected to work at least 80 hours a year for an employer in Minnesota. Employees earn one hour of sick and safe time for every 30 hours worked, with a maximum of 48 hours per year unless the employer agrees to a higher amount. This leave must be paid at the same hourly rate the employee earns during regular work.
Sick and safe time can be used for a variety of reasons, including personal or family illness, treatment, or preventive care. It also covers absences related to domestic abuse, sexual assault, or stalking for either the employee or a family member. Employees can use this time if their workplace, or their child’s school or care facility, is closed due to weather or an emergency. Additionally, if a health authority or medical professional determines that the employee or a family member may spread a communicable disease, this time can be used to prevent further risk. Employees may also take leave to make funeral arrangements, attend memorial services, or handle financial or legal matters following a family member’s death.
The law defines “family” broadly, covering children, spouses, parents, grandparents, siblings, in-laws, and foster or step-relations. It also includes anyone whose close association with the employee is equivalent to family and allows employees to designate one additional individual each year.
Employers must track and inform employees of their earned and used sick and safe time at the end of each pay period.
In cities like Bloomington, Minneapolis, and St. Paul, additional sick and safe time ordinances exist. Employers must follow the rules that provide the most benefit to employees.
Mileage Reimbursement
The federal government establishes and updates a maximum rate for non-taxable mileage reimbursement each year. The current rate is $0.67 per mile.
Payroll Frequency
Minnesota allows you to pay your household worker daily, weekly, bi-weekly or semi-monthly, or monthly. Pay upon voluntary separation is due on the next scheduled pay date. Pay upon discharge is due immediately.
Payroll Documentation
A written notice is required for each employee and anytime the employment relationship changes. We have a notice template available here.
Each time you pay an employee, you must provide them with a statement of wages that includes the name of the employee, the hourly rate of pay, total hours worked, gross wages, a list of deductions made from the employee’s pay, net wages, the date on which the pay period ends, and your legal name and your operating name (if it is different from your legal name).
- Minneapolis requires that sick and safe time hours accrued and unused must also be on the statement of wages.
Employment Contract Requirements
Minnesota does not have employment contract requirements. However, a free sample work agreement can be found here.
Workers’ Compensation Insurance
Minnesota requires household employers paying $77/week or more to obtain Workers’ Compensation Insurance. HWS ALWAYS recommends obtaining a Workers Compensation Insurance policy for the protection it provides in the event of a work-related injury sustained by your employee. A policy can usually be obtained easily and cost effectively by contacting your Homeowner’s or Renter’s Insurance provider. HWS can help you obtain this insurance through our insurance partner (just give us a call).
State Unemployment Insurance
Minnesota requires a new employer state unemployment insurance tax of 1.0% for the first $42,000 wages paid to each employee. This may vary if you have previous employees.
Frequency of Tax Filings
Minnesota requires quarterly tax filing for unemployment insurance and quarterly or annual tax filing for income tax withholding. HWS recommends filing quarterly.
