Effective January 1, 2020, Duluth, Minnesota employers of five or more employees must provide paid sick and safe leave to employees. (Ordinance No. 10571.)

Beginning January 1, 2020, employers must allow employees to begin accruing earned sick and safe time at a rate of one hour of earned sick and safe time for every 50 hours worked. Employers must permit an employee to accrue up to 64 hours of earned sick and safe time per year and carry over up to 40 hours of earned but unused sick and safe time into the following year.?Employers may instead "front load" 40 hours of sick leave to employees at the beginning of the year. New employees must immediately begin accruing earned sick and safe time, but employers may delay usage of the accrued hours for the first 90 days of employment.

The ordinance applies to any individual, corporation, partnership, association, nonprofit organization, or group of people that has five or more employees, whether or not all of the employees work in the city. Both full-time and part-time employees are included in this determination. ?The ordinance applies to full-time and part-time employees who perform work within the geographic boundaries of Duluth for more than 50% of their working time in a 12-month period, or are based in the city of Duluth and spend a substantial part of their time working in the city and do not spend more than 50% of their work-time in a 12-month period in any other particular place. Independent contractors, student interns, seasonal employees, certain railroad employees, and government employees (excluding the city of Duluth)?are not covered by the ordinance.

An employer that has a paid leave policy that provides substantially the same protections and benefits as under the ordinance is exempt from the ordinance's requirements. Satisfaction of the paid sick and safe leave ordinance requirements may be made through any combination of sick, vacation, or paid time off.?Special rules apply to the construction industry.

An employer must compensate an employee for used sick and safe time at the employee's standard hourly rate, for hourly employees, or an equivalent rate for salaried employees. Employees are not entitled to compensation for lost tips or commissions and compensation is required only for hours that an employee is scheduled to have worked.?

If an employee is transferred to a different division, entity, or location within the city, but remains employed by the same employer, the employee is entitled to all sick and safe time accrued but not used at the prior division, entity, or location When there is a separation from employment and the employee is rehired within 90 days of separation by the same employer, previously accrued sick and safe time that had not been used must be reinstated. When a different employer succeeds or takes the place of an existing employer, all employees of the original employer who remain employed by the successor employer are entitled to all accrued sick and safe time accrued but not used when employed by the original employer.

An employer is not required to provide financial or other reimbursement to an employee upon the employee's termination, resignation, retirement, or other separation from employment for earned sick and safe time that the employee has accrued but not used.

Employees can use their earned sick and safe time for:

• Caring for themselves or a family member due to a physical or mental health condition or illness.
• Attending a doctor's appointment or seeking preventative care.
• Caring for themselves, a family member, or a roommate for reasons related to domestic violence, sexual assault, or stalking.

Employers are required to display a poster in a conspicuous spot in the workplace regarding the paid sick a safe leave law. For more information, see the city's website, send an email to sicktimeinfo@duluthmn.gov?or call +1 218 730 5251.

Ernst & Young LLP insights

Duluth joins Minneapolis and St. Paul, Minnesota in establishing a paid sick leave law. In 2017, Minnesota Governor Mark Dayton vetoed legislation that would have prevented local government entities from passing an ordinance that requires private employers to provide benefits (e.g., paid sick leave) or pay a minimum wage greater than that under state law. Paid sick leave ordinances took effect July 1, 2017 in Minneapolis and January 1, 2018 in St. Paul. (EY Payroll Newsflash Vol. 18, #101, 6-7-2017.)

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