The Minnesota Labor Law Guide

Minimum wage is the lowest hourly pay rate that employers are legally obligated to pay employees. The federal minimum wage is a wage baseline, but different states, cities, and regions can adopt their own rates. 

As of January 1st, 2026, the minimum wage is $11.41 for most employees. Beginning January 1st, 2026, the minimum wage for employees with a 90-day training period under age 20 is $9.31.

Cities minimum wages change effective January 1st, 2026:

• Minneapolis - $16.37 per hour

• St. Paul - $16.37 per hour (for large and macro businesses)

• St. Paul- $15.00 per hour (for small businesses). Starting July 1, 2026, the minimum wage for macro businesses shall apply to small businesses.

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Minnesota does not allow tip credits against the minimum wage. Therefore, tipped employees are required to be paid minimum wage for all the hours they work.

Most Minnesota employers are subject to the federal Fair Labor Standards Act (FLSA) and must pay overtime after 40 hours.

• Federal Standard (Applies to most employers): Employers covered by the federal FLSA (generally those with annual gross sales of $500,000 or more) must pay overtime for all hours worked above 40 per workweek.

• State Standard (Applies to smaller, non-federally covered employers): Under the Minnesota Fair Labor Standards Act, employers not covered by federal law must pay overtime for all hours worked above 48 per workweek.

Overtime pay must be at least 1.5 times the employee’s regular pay rate.

Exceptions & Exemptions: Employees are only exempt from these requirements if they meet specific criteria under:

1. Federal Law: Executive, administrative, or professional exemptions (subject to federal salary thresholds); OR

2. State Law: Specific exemptions listed under Minnesota Statutes § 177.23, subdivision 7 (e.g., certain agricultural workers, seasonal staff, or salespeople).

Rest Breaks (Paid): Employers must provide a paid break of at least 15 minutes—or sufficient time to use the nearest restroom, whichever is longer—for every four consecutive hours worked.

Meal Breaks (Unpaid): Employees working six or more consecutive hours must be allowed a meal break of at least 30 minutes. This break may be unpaid only if the employee is completely relieved of all duties.

Penalties: Employers who fail to provide these breaks are liable for the wages that should have been earned during the break, plus an equal amount as liquidated damages.

Waivers: Employees may voluntarily waive their breaks, provided the waiver is documented in writing.

This is a developing law, and as the Minnesota Department of Labor publishes additional guidance related to this law, we will update the compliance hub accordingly.

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Vacation leave
Minnesota law does not require employers to provide paid or unpaid vacation leave. However, employers should clearly define in their policies whether vacation time can be used to 'top up' partial wage replacement received under the state Paid Family and Medical Leave (PFML) program.

Paid Sick Leave
Statewide: Earned Sick and Safe Time (ESST) Effective January 1, 2024 (Amendments effective Jan 1, 2026)

Minnesota requires all employers with at least one employee to provide paid sick and safe leave.

• Eligibility: Employees working at least 80 hours per year in Minnesota are eligible. Independent contractors are excluded.

• Accrual Rate: 1 hour of ESST for every 30 hours worked.

• Accrual Caps: Employers may cap annual accrual at 48 hours. Employees must be allowed to carry over unused time up to a total bank of 80 hours. Employers may still limit annual usage to 48 hours, even if the employee’s bank exceeds that due to carryover.

• Frontloading Option: Employers can avoid carryover tracking by frontloading:

  • 48 hours at the start of the year (must pay out unused time at year-end).

  • 80 hours at the start of the year (no payout required).

• Usage: Leave can be used for the employee’s or a family member’s illness/injury, preventative care, domestic abuse/safety reasons, or closure of work/school due to weather or public emergency.

• 2026 Update: Effective Jan 1, 2026, employers can only require documentation for absences of more than 2 consecutive scheduled workdays (previously 3 days).

City-Specific Ordinances - employers operating in the following cities must comply with local ordinances in addition to state law. Where local and state laws differ, employers must follow the standard most favorable to the employee.

• Bloomington:

  • Coverage: Applies to employees working 80+ hours/year within city limits.

  • Alignment: largely mirrors state law standards for accrual (1 hr/30 worked) and caps (48 hrs/year).

• Minneapolis:

  • Coverage: Applies to employees working 80+ hours/year within the city's geographic boundaries.

  • Small Business Note: While the city ordinance originally allowed unpaid leave for small employers (1-5 employees), state law now mandates paid leave for all covered employers, effectively overriding this exemption.

  • Increments: Employees must be allowed to use leave in the smallest increment the payroll system tracks (up to 4 hours).

  • Note: The city ordinance still exists, but state law effectively preempts the unpaid-leave distinction.

• St. Paul:

  • Coverage: Applies to employees working 80+ hours/year within city limits.

  • Frontloading Rule: If an employer chooses to frontload leave, they must use the same method (48h with payout or 80h without) for all employees; they cannot switch methods between full-time and part-time staff.

Holidays
Minnesota law does not require employers to provide paid or unpaid holidays. Employers may offer holiday leave at their discretion. Any holiday policy should be clearly documented in the employer’s handbook and communicated to employees. Standard wage and overtime rules apply if employees work on a holiday.

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Minnesota’s Child Labor Standards Act governs when minors may work, how many hours they may work, and what types of jobs they may perform. Employers must comply with both state and federal child labor laws where applicable. When the laws differ, the stricter standard applies.

Employers who violate Minnesota child labor laws may be subject to penalties under Minn. Stat. § 181A.12.

Minimum Age to Work

General Rule

Children under age 14 generally may not be employed in Minnesota.

Exceptions

Children younger than 14 may work only in limited circumstances, including:

• Newspaper carriers who are at least 11 years old

• Agricultural employment for children 12 years or older, with parent or guardian consent

• Youth athletic program referees who are at least 11 years old, with parent or guardian consent

• Certain non-hazardous work in a family-owned business, as permitted by law

Hours of Work Restrictions

Minors Under 16 – Federal Law (FLSA)

For covered employers, federal law limits work for minors under age 16 as follows:

• No work before 7:00 AM

• No work after 7:00 PM, or after 9:00 PM from June 1 through Labor Day

• During the school year:

  • No more than 3 hours on a school day

  • No more than 18 hours in a school week

Minors Under 16 – Minnesota Law (All Employers)

Under Minnesota law, minors under 16 may not:

• Work before 7:00 AM

• Work after 9:00 PM

• Work more than 8 hours in any 24-hour period

• Work more than 40 hours in a workweek

Note: Agricultural employment is largely exempt from state hour restrictions.

Minors Ages 16 and 17 – Minnesota Law

Minors aged 16 or 17 may not:

• Work after 11:00 PM on nights before a school day

• Work before 5:00 AM on school days

With written permission from a parent or guardian, work hours may be extended to:

• 11:30 PM to 4:30 AM on school nights

Prohibited Occupations

Minors may not work in hazardous or high-risk occupations, including but not limited to:

• Manufacturing, handling, or working near explosives

• Operating or assisting with certain power-driven machinery, including meat slicers and meat saws

• Tasks involving hazardous materials, as defined by law

• Construction or building project related activities deemed hazardous under state or federal regulations

Minors may not sell, serve, or bartend alcoholic beverages. However, minors may work in establishments that serve alcohol in non-alcohol-related roles, subject to age and duty restrictions.

Hiring
It is considered illegal for employers to act on discriminatory employment practices before a job applicant is hired under the Minnesota Human Rights Act. 

It is illegal to attempt to get information that has to do with their protected class. 

Employers are prohibited from getting information by an application form, job interview, physical exam/health history, or third parties such as agencies. 

However, there are exemptions listed here under the Minnesota Statue §363A.20.

Pay Transparency (Effective Jan 1, 2025): Employers with 30 or more employees in Minnesota must disclose the starting salary range (or fixed pay rate) and a general description of benefits in all job postings.

Exceptions: Limited exemptions apply for specific cases, such as employment by a family member or religious qualifications for certain organizations.

Firing
Minnesota employers have the right to terminate employees at-will for nearly any reason or for no reason at all, as long as the reason is not illegal.