July "Wage and Hour Bulletin": Earned sick and safe time (ESST) rules go into effect

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Wage and Hour Bulletin

July 2026

Earned sick and safe time (ESST) rules go into effect

Manufacturing worker

The Department of Labor and Industry (DLI) recently completed the process to adopt rules that clarify how certain aspects of earned sick and safe time (ESST) apply. The rules were developed through a formal process involving public input and review by an administrative law judge. They took effect July 6, 2026.

The ESST rules address:

  • accrual year
  • hours worked
  • time credited and increments of accrual
  • accrual and advancing methods
  • employee use
  • incentives
  • reasonable documentation
  • misuse of ESST; and
  • more generous sick and safe time policies

For more information, visit our FAQS about ESST rules page.


Signing a contract

Keeping workers informed

Employers have an important responsibility to inform employees about their workplace rights. Providing required notices supports transparency and fairness. In Minnesota, required workplace notices include:

  • an ESST notice;
  • an employee wage notice;
  • a Nursing Mothers, Lactating Employees, and Pregnancy Accommodations notice;
  • a Paid Leave notice; and
  • notices for specific industries, such as nursing homes, meat-processing and agriculture.

Note:  Required employee notices and workplace posters serve different purposes and are separate requirements. Posters must be displayed in a visible, accessible location for all employees. Notices must be provided directly to employees, often at the start of employment.


Case example involving required notices

DLI learned an employer provided only six weeks of parental leave for adoption, instead of the 12 weeks required by a provision in the Women’s Economic Security Act (WESA).

The employer also did not provide the Nursing Mothers, Lactating Employees, and Pregnancy Accommodations notice required by WESA at hire and when an employee requests parental leave.

After being advised of their noncompliance with WESA, the employer  agreed to provide 12 weeks of leave for adoption, provided the required notice to employees, and updated its handbook to include the notice.


Gratuities:  Key Minnesota rules

Minnesota law prohibits employers from using tips to meet minimum-wage requirements. Employees must receive the full minimum wage in addition to any tips they earn.

With summer bringing increased activity into hospitality and other tipped industries, employers are reminded that employees must receive the full amount of any tips paid by credit card or electronic payment. These gratuities must be provided to workers in the next pay period, with no deductions for processing or swipe fees.


Workplace Rights Week logo

Workplace Rights Week 2026

Join us again for Minnesota’s Workplace Rights Week Sept. 13-19, 2026. This statewide initiative helps workers and employers understand their rights and responsibilities, strengthening workplaces and communities. Last year, DLI connected with thousands of Minnesotans through business visits, events and virtual presentations.

We invite you to partner with us in 2026 by hosting or cohosting an event, webinar or outreach activity. If interested, email Diana Salas at diana.salas@state.mn.us.


August webinars

  • National Breastfeeding Month: State and federal workplace protections of pregnant and nursing parents and programs to assist and recognize supportive employer practices, Aug. 4, from 10-11:15 a.m. Register for the webinar and Aug. 13, from 2-3:15 p.m. Register for the webinar.

July featured case

DLI recently investigated a case in which an employee in the fast-food restaurant industry was reprimanded for discussing wages in the workplace, a violation of Minnesota’s wage disclosure law.

As a result of the investigation, the employer agreed not to restrict employees from discussing their wages and to update other policies that were out of compliance, including meal- and rest-break practices.


Questions of the month

What are the requirements for tips paid by credit card or electronic payment?

Employers must give employees the full amount of any tip paid by card or e‑payment. Employers cannot deduct processing or swipe fees from these tips. Gratuities received through credit cards or other types of electronic payments must be paid to the employee in the next pay period.


Wage and Hour Bulletin archive

Access past editions of the Wage and Hour Bulletin.


Questions?

The Labor Standards Division serves the people of Minnesota by providing
information about the state's wage, hour and employment laws.

Phone:  651-284-5075 or 800-342-5354
Email:  dli.laborstandards@state.mn.us
Website:  dli.mn.gov