On July 6, 2026, the Minnesota Department of Labor and Industry (“DLI”) issued new Earned Sick and Safe Time (“ESST”) rules. A link to the new rules can be found here, and FAQs about the rules can be found here.

The new rules resolve several questions that have emerged since the ESST statute became effective in 2024. Among other things, they clarify that employers must designate and communicate a 12-month ESST accrual year to employees, or the calendar year will apply by default. The rules also establish that employers may change their accrual year or accrual method. However, advance written notice is required, and a change negatively affecting an employee’s ability to accrue ESST is prohibited.

The rules also provide additional guidance regarding employee eligibility and the administration of ESST. Employers must determine in “good faith” whether an employee is expected to work at least 80 hours in Minnesota during the year and therefore qualifies for ESST. Importantly, ESST applies to any employee who works 80 hours, even if previously expected to work below that threshold. DLI further clarifies how ESST should be credited each pay period, addresses the treatment of exempt employees and employees working indeterminate-length shifts, and establishes requirements for employers that advance ESST, including when additional leave must be provided if an employee ultimately works more hours than anticipated. The rules also confirm that employees rehired within 180 days generally are entitled to reinstatement of up to 80 hours of previously accrued but unused ESST.

In addition, the rules clarify several important issues surrounding employee use of ESST. DLI emphasizes that the decision to use ESST belongs to the employee and that employers may not require employees to use accrued ESST leave for an otherwise qualifying absence. However, if an employee elects not to use available ESST, the absence is not entitled to ESST’s statutory protections. The rules also address attendance incentives, clarifying that employers generally may withhold bonuses or other attendance or productivity-based incentives when an employee misses the applicable benchmarks due to ESST use, provided employees taking other forms of approved leave would not remain eligible for the same incentive.

Finally, the rules provide additional guidance regarding documentation and suspected misuse of ESST. Employers may require reasonable documentation when authorized by the ESST statute, which applies when an employee uses ESST for more than two consecutive scheduled workdays, provided the employee receives reasonable notice of the documentation requirement and an opportunity to comply. The rules also identify examples of conduct that may constitute a pattern of suspected misuse, allowing employers to request documentation before an employee has used ESST for more than two consecutive scheduled workdays. At the same time, DLI makes clear that employers may not deny an employee’s request to use ESST for a qualifying reason based solely on prior or suspected misuse. The rules also confirm that employers may continue to satisfy ESST obligations through more generous PTO policies, provided those policies afford employees the protections required by the ESST statue law when leave is used for a qualifying purpose. Minnesota Paid Leave benefits qualify as “other salary continuation benefits” under the ESST statute.

Although the new rules do not substantially change Minnesota’s ESST obligations, they provide relevant clarification regarding DLI’s interpretation of the statute and employers’ compliance obligations. Minnesota employers should review their leave policies, payroll practices, and ESST administration procedures to ensure they are consistent with the new rules.

If you have questions about the new ESST rules or their impact on your workplace, please contact a member of Winthrop & Weinstine’s Employment & Labor group.

August 10, 2026