Complying with local ordinances – A statewide challenge for employers

Complying with local ordinances – A statewide challenge for employers

Local governments have begun passing wage and benefit mandates on private-sector employers located in their communities. It is important for employers to be aware of these new requirements and to comply with them. A summary of these new mandates is provided below. We have also provided links to city government pages that provide more in-depth information. 

The Minnesota Chamber strongly opposes local governments enacting wage and labor mandates on the private sector. Our policy concerning these mandates can be found here: link to labor management policy. We are interested in hearing about the best practices employers are implementing to attract and retain talent in Minnesota’s very competitive labor market. It is important for elected officials to know that these mandates are not necessary, and, in fact intrude and impact existing employee benefit offerings. 

FAQs:

What cities have passed local labor mandates?
Minneapolis has passed its own minimum wage that’s higher than the state minimum wage. Minneapolis and St. Paul have both passed mandates requiring employers to provide “paid sick and safe time” with specific requirements for accrual, carry over, and use. The city of Duluth is also considering adopting a paid sick/safe time ordinance. 

Do I have to comply with the Minneapolis minimum wage ordinance?
If you have employees working within the geographic boundaries of Minneapolis, you must comply with the Minneapolis minimum wage ordinance. The ordinance mandates different minimum wages depending on whether you have more than 100 employees. For companies of all sizes, the Minneapolis minimum wage ratchets up over time.

Do I have to comply with the Minneapolis and/or St. Paul paid sick/safe time ordinances?
Under the ordinances and enforcement guidance in effect as of January 2018, an employer must provide this paid time to its employees only in the following situations:

  • The employer has a physical presence in Minneapolis and employees in Minneapolis. This employer would need to provide its Minneapolis employees the paid time off in accordance with the Minneapolis mandate.
  • The employer has a physical presence in St. Paul and employees in St. Paul. This employer would need to provide its St. Paul employees the paid time off in accordance with the St. Paul mandate.

I offer PTO now. Is that good enough?
To fulfill the city mandates, your PTO policy must allow employees to accrue, carry over, and use paid time off at the levels required in the mandate. “Close” is not good enough.

Do I have to post notice posters?
Yes. They’re available at the cities’ FAQ sites:

If you are interested in sharing your story, please contact Cam Winton, director labor/ management policy, at cwinton@mnchamber.com or 651.292.4663.