On May 27, 2016, the Minneapolis city council approved an ordinance that, beginning July 1, 2017, will require employers with six or more to provide paid sick leave employees working in the City. Employers with five or less employees must provide unpaid sick leave to employees. (Ordinance 15-01372; news release, May 27, 2016.)

State bill to enact paid sick leave fails

HF 848, which was enacted in lieu of budget bill HF 3931, did not include the provisions that would have established a paid family and medical leave program. Similar to programs in other states (i.e., New Jersey), the bill called for funding from employee and matching employee contributions. HF 848 also did not include the creation of an unpaid 12-week family care leave requirement subject to the same requirements that currently exist for state mandated unpaid pregnancy and bonding leave.

In its end of session review, the Senate DFL caucus stated that it remains committed to continuing their work to make paid family leave a reality in Minnesota in future years.

Minneapolis paid sick leave

Termed the Minneapolis Sick and Safe Time Ordinance, new Chapter 40 of the Minneapolis code of ordinances will require employers to allow employees working in the City to accrue a minimum of one hour of sick and safe time leave for every 30 hours worked, up to a maximum of 48 hours (unless the employer agrees to a higher amount) of accrued sick leave in a calendar or fiscal year.

Employers must allow employees to carry over unused accrued sick leave of up to 80 hours to the following year. Employers may agree to allow the accrual of more than 48 hours per year or carry-over of more than 80 hours to the following year.

Sick and safe time begins to accrue at the late of the commencement of employment of the employee or the July 1, 2017, effective date of the ordinance. Employees must be allowed to use accrued sick and safe time leave beginning 90 days following commencement of their employment. After 90 calendar days of employment, employees may use sick and safe time leave as it is accrued.

An "employee" is defined as any individual employed by an employer, including temporary employees and part-time employees, who perform work within the geographic boundaries of the City for at least 80 hours in a year for that employer.

For first 12 months after an employer (other than chain establishments) begins business and hires its first employee, an employer is only required to provide unpaid sick time but are not required to provide paid sick time. After 12 months, an employer with six or more employees will be required to provide paid sick time. This exemption provision will sunset five years from the July 1, 2017 effective date of the ordinance.

An employee may use accrued sick and safe time for an employee's (or employee's family member) mental or physical illness, injury or health condition; preventive, diagnostic or health care; or absence due to domestic abuse, sexual assault, or stalking, and other circumstances as described by the ordinance.

An employer with six or more employees must compensate an employee at the same hourly rate with the same benefits as the employee was scheduled to earn during the time the employee uses his or her accrued sick and safe time. Employees are not entitled to compensation for lost tips or commissions and compensation is only required for hours that an employee is scheduled to have worked. An employer with five or less employees must allow employees unpaid use of accrued sick and safe time.

For the first 12 months after the July 1, 2017 effective date, no penalties will be imposed for an employer's first failure to comply with the ordinance. Employers who provide their employees sick and safe time under a paid time off policy or other paid leave policy that meets or exceeds, and does not otherwise conflict, with the minimum standards and requirements provided under the ordinance are not required to provide additional sick and safe time.

By July 1, 2017, the city will publish and make available notices suitable for posting by employers in the workplace informing employees of their rights under the ordinance. Every employer must post such a notice in a conspicuous place at any workplace or job site where any employee works. An employer that provides an employee handbook to its employees must include in the handbook notice of employee rights and remedies under the ordinance.

For more information, see the City's website.

Ernst & Young LLP insights

Minneapolis joins the states of California, Connecticut, Massachusetts, Oregon and Vermont, as well as the District of Columbia and numerous other cities, such as New York City, and other municipalities mandate that employers provide paid sick leave to employees.

———————————————

———————————————