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Key issues: Workplace mandates

KEY PRIORITIES
FOR THE 2026 SESSION INCLUDED:

  • Defend private sector flexibility to determine wages, benefits, scheduling, employee classification and hiring decisions and tools.
  • Improve structural regulatory and compliance environment; make swift adjustments to the new paid family and medical leave law if needed as part of implementation.
  • Oppose reclassifying independent contractors as employees.
  • Support explicit statewide preemption of local labor ordinances; oppose establishment of labor standards boards.
  • Ensure regulatory changes proposed through Minnesota’s state agencies consider impacts on Minnesota employers; pursue modifications to overreaching new laws.
  • Oppose unreasonable regulations; streamline occupational licensing.

 

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2026 outcomes

 

WINS

  • No new workplace mandates. After 35+ new workplace mandates were imposed under the DFL trifecta last biennium, the Chamber successfully advocated against any additional, onerous labor mandates and employment regulations on the use of artificial intelligence (AI).
  • That being said, a number of new workplace mandates were introduced and pursued this biennium.  
  • Notable proposals that were introduced but not passed included: significant AI-related regulation in employment settings, including the prohibition of various automated systems and electronic tools in Minnesota; a seating mandate; a prohibition on employer repayment agreements; additional requirements to the newly imposed job postings mandate; wage and benefit increases for certain industries at certain facilities; allowing striking workers to collect UI; an increase of the minimum wage to $20/hour; CEO pay ratio tax penalties; changing the standard as to whether an individual is an employee; holiday overtime pay requirement among others. 
     

CONTINUED CHALLENGES

  • No substantive modifications to the sick and safe time law, the paid family and medical leave law or other workplace mandates requested by the business community.
  • Hostility to employers requiring the need to continue fighting against new workplace mandates on businesses that negatively impact workplace dynamics.
  • Policymakers’ general lack of understanding regarding how businesses operate in a global economy and the operational challenges for both employers and employees that Minnesota-specific business regulations have on the cost of doing business and our state's competitiveness. 

 

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