Minnesota employers: the Department of Labor and Industry’s new Earned Sick and Safe Time rules are now in effect (as of July 6, 2026). These rules bring needed clarity on accrual years, eligibility determinations, documentation, incentives, and how ESST interacts with other leave policies.
Below is a practical, step-by-step compliance manual distilled from the adopted rules so you can review, update, and enforce your leave policies with confidence. This is a general guide only—always consult legal counsel for advice specific to your organization.
Step 1: Set and Communicate Your Accrual Year
Choose any regular, consecutive 12-month period as your ESST accrual year and clearly designate and communicate it to employees. If you do not designate one, the calendar year applies by default. To change the accrual year later, notify employees in advance and ensure the change does not reduce anyone’s ability to accrue ESST.
Step 2: Follow Proper Procedure When Changing Accrual Methods
Provide written notice before switching methods (for example, from accrual-based to frontloading). The change cannot take effect until the first day of the next accrual year.
Step 3: Determine Employee Eligibility in Good Faith
Cover any employee anticipated to work at least 80 hours per year in Minnesota (subject to limited exceptions). Evaluate eligibility using a good-faith standard: review the employee’s anticipated work schedule and location of hours worked, and document that the evaluation was not knowingly false or made in reckless disregard of the truth.
Step 4: Calculate ESST Usage for Indeterminate-Length Shifts
When an employee on a shift of indeterminate length uses ESST, calculate the hours using one of these methods:
- Hours worked by the replacement worker (if any); or
- Hours the employee worked during their most recent similar indeterminate-length shift; or
- The greatest number of hours worked by a similarly situated employee who covered that same shift.
Step 5: Accrue, Credit, and Advance ESST Correctly
Make accrued ESST available no later than the regular payday following the end of the pay period in which it was earned. You are not required to credit ESST in increments smaller than one hour.
If advancing (rather than accruing) time:
- Advance at a rate of at least 1 hour per 30 hours the employee is anticipated to work.
- You are not required to advance more than 48 hours unless a policy, contract, ordinance, or law requires more.
- If actual hours worked exceed your original estimate and create a shortfall, provide the additional ESST owed within 15 calendar days of that shortfall becoming apparent.
Step 6: Request Documentation Appropriately
By statute, you may request reasonable documentation when ESST is used for more than two consecutive scheduled workdays.
Under the new rules, you may also request documentation—even within that two-day window—if there is a pattern or clear instance of suspected misuse, such as:
- Repeated ESST use immediately before or after scheduled days off, vacation, or a holiday.
- ESST used on a day for which you previously denied a different paid-time-off request.
Do not deny an employee’s future legitimate ESST use based on prior misuse or suspected misuse. Continue honoring Minn. Stat. § 181.9447, subd. 3: an employee’s own statement may count as reasonable documentation when a health care professional’s documentation cannot be obtained in a reasonable time or without added expense.
Step 7: Apply Incentive Programs Correctly
You may deny a goal-based incentive (e.g., perfect attendance, hours worked, products sold) if the employee missed the goal because of ESST use. You may not deny that same incentive to an ESST user if you would still provide it to an employee who missed the goal due to another type of leave.
Step 8: Coordinate ESST With More Generous Leave Policies
ESST legal protections apply only when leave is used for a qualifying ESST purpose—even under a combined “single bank” PTO policy that also covers vacation and other personal time. Do not extend ESST protections to leave used for non-qualifying purposes (e.g., personal vacation), even if drawn from the same leave bank.
Step 9: Understand the Interaction With Minnesota Paid Leave
Minnesota Paid Leave is classified as an “other salary continuation benefit.” As such, it is excluded from certain ESST protections that apply under the 2024 ESST amendments.
Step 10: Take Action — Recommended Next Steps
- Review MNDOLI’s updated ESST FAQs.
- If you operate in Minneapolis, review the City of Minneapolis’s updated ESST FAQs (reflecting recent ordinance amendments).
- Update your employee handbook and leave policies to reflect the new rules.
- Provide manager and supervisor training covering how to evaluate ESST requests, documentation requirements, and employee eligibility determinations.
- Ensure all policy changes (accrual year, accrual method) are communicated to employees in writing and in advance.
Quick Reference
- Default accrual year → Calendar year, unless employer designates otherwise
- Accrual method change → Written notice required; effective next accrual year only
- Eligibility threshold → 80+ anticipated work hours/year in MN, “good faith” standard
- Minimum crediting increment → 1 hour • Minimum advance rate → 1 hour per 30 hours anticipated worked
- Maximum required advance → 48 hours (unless otherwise required)
- Shortfall makeup deadline → Within 15 calendar days
- Standard documentation trigger → More than 2 consecutive scheduled workdays
- Additional documentation trigger → Pattern or clear instance of suspected misuse
Source: Based on legal analysis regarding MNDOLI’s adopted ESST rules, effective July 6, 2026. This manual is intended as a general guide; consult qualified legal counsel for advice on specific circumstances.
