- Minnesota now has a paid sick and safe leave law. The statute applies to anyone working in Minnesota for at least 80 hours a year, with some exceptions.
- Examine and update policies promptly. Keep abreast of state and city laws related to paid leave, including in other states if you have remote or traveling employees.
- An important recruiting tool. With paid leave policies and related laws continuing to change, offering a robust leave policy helps attract and retain talent.
Almost 40% of states now have mandated paid sick and safe leave with Minnesota the latest to join the growing ranks.
The law, which took effect Jan. 1, guarantees paid leave for all employees (including part-time and temporary employees) who work in the state for at least 80 hours a year. It does not cover independent contractors or certain individuals employed by an air carrier as a flight deck or cabin crew member.
Minnesota allows employees to accrue up to 48 hours of paid sick and safe leave each year. They can carry over unused time from year to year, and employers can cap accrued hours at 80.
Covered reasons include: the employee's physical or mental health, or that of a family member; time off related to domestic abuse, sexual assault or stalking; and business or school closures due to weather or a public emergency. There is an extensive list of who qualifies as a family member under the statute.
A Growing Trend
There now is some version of a paid sick and safe leave law in Arizona, California, Colorado, Connecticut, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont and Washington, as well as Washington, D.C. Some of those states have municipalities with their own ordinances that employers must follow as well.
Virginia has a statewide law that applies only to home healthcare workers. Pennsylvania has no state statute, but there are local ordinances in Philadelphia, Pittsburgh and Allegheny County.
Experts expect to see more of these laws passed in the future, said Holly M. Robbins, shareholder and co-chair of the Whistleblowing, Compliance and Investigations Practice Group at Littler.
There is no federal law related to paid sick leave. The Healthy Families Act, a federal bill introduced in 2023 but not passed, would require certain employers to offer sick leave. But even if it were to pass, employers likely would continue to face an administrative maze of federal, state and local paid leave laws, said Alex Henry, group benefits leader at WTW.
“I think we are going to be sitting with this patchwork for at least the foreseeable future,” Robbins said.
Next Steps for Employers
Employers should first examine how a new law's guidelines align with their current policies.
“Many employers will provide at least the minimum number of days required, but few will meet all the requirements of the law with a traditional sick leave policy,” Henry said. “For example, many sick leave laws allow for the reinstatement of accrued but unused sick time, upon rehire — which is uncommon in traditional, employer-sponsored sick leave policies.”
Henry urged employers updating their policies to review covered reasons for leave, covered persons, eligibility, documentation requirements, reporting requirements, payroll requirements and other areas outlined in a new law.
Employers with workers physically located in multiple states should be cognizant of state laws and city ordinances in all relevant states.
The Minnesota law applies to employees living or physically working in Minnesota.
Since paid sick leave typically accrues based on hours worked, employers should stay current on the hours and days their employees work in various locations — for instance, an out-of-state employee who travels to Minnesota for a three-week training or a trucker who drives through various states for a certain amount of hours each year, Robbins said.
She added that businesses should update their attendance policies so that employees aren't disciplined for taking protected leave. They should also train managers and HR staff on the new policies so that they know the circumstances under which employees can take paid time off.
Paid Leave Trend Forecasts
Minnesota also recently passed a paid family and medical leave law, which will go into effect in 2026. Employers will pay into a state program to fund the leave, which pays employees a portion of their salary, applies to longer periods of time — from 12 to 20 weeks a year — and covers circumstances such as longer-term illness or treatment or time off for new parents.
With more states passing these laws, this is another paid leave trend that employers should keep an eye on, as its structure and applications are different, Robbins said.
Henry noted that many employers are also considering future enhancements to parental, bereavement, caregiver and adoption leave programs.
Paid leave is an important recruitment and retention tool, Henry said. In fact, 84% of U.S. employers have said they plan to update their leave programs within the next two years, according to a recent WTW survey.
“Paid leave has almost become 'ante to play' in today's competitive labor market,” Henry said. “Employers who neglect to have a robust leave portfolio will be a step behind competitors when it comes to attracting and retaining talent. On the flip side, employers who invest in a thoughtful approach to their time-off programs can create a supportive work environment that fosters engagement and improves the overall employee experience.”
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