Minnesota Employment Laws for Employers
Reviewed Sep 27, 2026 10 of 13 rules verified against official sources How we verify
Not a substitute for the advice of an attorney. General information; laws vary by state. Terms of use
Final pay and unused vacation
Final paycheck
If you fire someone, when is the last paycheck due?24 hours after requestVerified Sep 24, 2026 · 2 official pages from the same agency
When an employer discharges an employee, earned and unpaid wages are immediately due upon the employee's demand; if they are not paid within 24 hours after demand, the employer is in default and penalties can accrue. (Minn. Stat. § 181.13(a))
“If the employee's earned wages and commissions are not paid within 24 hours after demand, whether the employment was by the day, hour, week, month, or piece or by commissions, the employer is in default.”
Put it in writing with the termination letter template for Minnesota.
If an employee quits, when is the last paycheck due?First regular payday; if it is less than 5 calendar days away, the second payday, but no later than 20 calendar daysVerified Sep 24, 2026 · 2 official pages from the same agency
When an employee quits, wages are due by the first regularly scheduled payday after the final day of employment; if that payday is less than five calendar days away, payment may be delayed to the second regularly scheduled payday, but no later than 20 calendar days after the final day. (Minn. Stat. § 181.14(a))
“If the first regularly scheduled payday is less than five calendar days following the employee's final day of employment, full payment may be delayed until the second regularly scheduled payday but shall not exceed a total of 20 calendar days following the employee's final day of employment.”
“If an employee quits, wages are due on the next pay period that is more than five days after quitting. However, wages must be paid within 20 days of separation (see Minnesota Statutes 181.14).”
Unused vacation (PTO) at separation
Do you have to pay out unused vacation when someone leaves?Depends on your policyVerified Sep 24, 2026 · 2 official pages from the same agency
In Minnesota, company policy determines when benefits such as vacation are due, including at separation. Once due under the policy or agreement, benefits must be paid within 30 days. (Minnesota Dept. of Labor and Industry, Employment termination (Minn. Stat. 181.74))
“Company policy can determine when any benefits are due, such as vacation, sick leave and severance packages. Benefits are payable within 30 days of when they become due.”
“Any employer required under the provisions of an agreement to which the employer is a party to pay or provide benefits or wage supplements to employees or to a third party or fund for the benefit of employees, and who refuses to pay the amount or amounts necessary to provide such benefits or furnish such supplements within 30 days after such payments are required to be made under law or under agreement, is guilty of a gross misdemeanor.”
Wages, paydays and breaks
Minimum wage
What is the minimum wage?$11.41 per hourVerified Sep 27, 2026 · 2 official sources
Minnesota's state minimum wage is $11.41 per hour for all employers. (Minnesota minimum wage law (DOL WHD state minimum wage table, updated July 1, 2026))
“Minnesota Basic Minimum Rate (per hour): $11.41”
“Minnesota's minimum-wage rate will be adjusted for inflation Jan. 1, 2026, to $11.41 an hour for all employers in the state.”
Paydays
How often do you have to pay?At least every 31 daysVerified Sep 27, 2026 · 2 official sources
Employers must pay all wages at least once every 31 days on a regular payday, and commissions at least once every three months. (Minnesota payday law (DOL WHD State Payday Requirements, footnote 11))
“Under Minnesota statute, employers are required to pay their employees for all wages including salary, earnings and gratuities at least once every 31 days, and all commissions earned by an employee at least once every three months on a regular payday.”
“(a) Except as provided in paragraph (b), every employer must pay all wages, including salary, earnings, and gratuities earned by an employee at least once every 31 days and all commissions earned by an employee at least once every three months, on a regular payday designated in advance by the employer regardless of whether the employee requests payment at longer intervals.”
Pending verification. Not verified for Minnesota yet, so no answer is shown. Each link opens the official source to check.
Paid sick leave
Do you have to give paid sick leave?Yes, statewideVerified Sep 24, 2026 · 2 official pages from the same agency
Accrual: Minnesota earned sick and safe time (ESST): employees accrue at least one hour of paid ESST for every 30 hours worked. (Minn. Stat. § 181.9446)
“(a) An employee accrues a minimum of one hour of earned sick and safe time for every 30 hours worked up to a maximum of 48 hours of earned sick and safe time in a year.”
“An employee earns one hour of sick and safe time for every 30 hours worked and can earn a maximum of 48 hours each year unless the employer agrees to a higher amount.”
revisor.mn.gov · dli.mn.gov · verified Sep 24, 2026 · 2 official pages from the same agency
Accrued balance cap: Unused ESST carries over, but the total accrued balance may be capped at 80 hours (unless the employer agrees to more). (Minn. Stat. § 181.9446)
“The total amount of accrued but unused earned sick and safe time for an employee must not exceed 80 hours at any time, unless an employer agrees to a higher amount.”
“Employers must allow each employee to accrue up to at least 48 hours a year, carried over from year to year, until an 80-hour maximum accrual is reached.”
revisor.mn.gov · dli.mn.gov · verified Sep 24, 2026 · 2 official pages from the same agency
Annual cap: Employers may cap annual ESST accrual at 48 hours a year (more if the employer agrees). (Minn. Stat. § 181.9446)
“Employees may not accrue more than 48 hours of earned sick and safe time in a year unless the employer agrees to a higher amount.”
Same official text as quoted above (see the quote; Minnesota DLI, Earned sick and safe time (ESST) · dli.mn.gov).
revisor.mn.gov · dli.mn.gov · verified Sep 24, 2026 · 2 official pages from the same agency
Effective date: Minnesota's ESST law took effect "Jan. 1, 2024". (Minnesota DLI, FAQs: Earned sick and safe time (ESST))
“Minnesota’s earned sick and safe time (ESST) law has been in effect since Jan. 1, 2024.”
“Since Jan. 1, 2024, DLI has worked to ensure awareness of and compliance with Minnesota’s ESST law through”
dli.mn.gov · dli.mn.gov · verified Sep 24, 2026 · 2 official pages from the same agency
Employee eligibility: Covered employees are those anticipated to work at least 80 hours a year for an employer in Minnesota (not independent contractors); part-time, seasonal and temporary employees are included. (Minnesota DLI, FAQs: Earned sick and safe time (ESST))
“An employee is anyone who an employer anticipates works at least 80 hours in a year for an employer in Minnesota but does not include independent contractors. Part-time, seasonal and temporary employees are covered under the law.”
“are anticipated to work at least 80 hours in a year for an employer in Minnesota; and”
dli.mn.gov · dli.mn.gov · verified Sep 24, 2026 · 2 official pages from the same agency
Employer coverage: Applies to every employer with one or more employees in Minnesota (the federal government excluded); ESST is paid leave for all covered employers. (Minn. Stat. § 181.9445, subd. 6)
“"Employer" means a person who has one or more employees.”
“Minnesota law requires employers to provide earned sick and safe time (ESST), a type of paid leave, to workers in the state.”
revisor.mn.gov · dli.mn.gov · verified Sep 24, 2026 · 2 official pages from the same agency
Note: Minneapolis and St. Paul have their own earned sick and safe time ordinances. Employers there must follow whichever requirements are most favorable to the employee, state or city. (Minn. Stat. §§ 181.9445-181.9448; Minnesota DLI earned sick and safe time page)
Ending employment
At-will employment
Yes. Minnesota follows at-will employment, with these exceptions (Wredberg v. Canvas Health, Inc., No. A24-1897 (Minn. Aug. 12, 2026), citing Phipps v. Clark Oil & Refining Corp., 408 N.W.2d 569, 571 (Minn. 1987)):
- Public policy: Recognized, limited (Wredberg v. Canvas Health, Inc., No. A24-1897 (Minn. Aug. 12, 2026), citing Phipps v. Clark Oil & Refining Corp., 408 N.W.2d 569, 571 (Minn. 1987))
- Implied contract: Recognized (Hall v. City of Plainview, No. A19-0606 (Minn. Feb. 3, 2021), syllabus, applying Pine River State Bank v. Mettille, 333 N.W.2d 622 (Minn. 1983))
- Good faith and fair dealing: Not recognized (Mandel v. Multiband Corp., No. A15-1133 (Minn. Ct. App. Mar. 28, 2016) (unpublished), citing Hunt v. IBM Mid Am. Emps. Fed. Credit Union, 384 N.W.2d 853, 858 (Minn. 1986))
Public policy exception: recognized?Recognized, limitedVerified Sep 24, 2026 · 2 official pages from the same agency
Minnesota's common-law public policy claim is narrow (Phipps v. Clark Oil): an employee fired for refusing to participate in an activity the employee in good faith believes violates a state or federal law, rule or regulation may sue; the Supreme Court has declined to recognize a broader claim for any violation of public policy. (Wredberg v. Canvas Health, Inc., No. A24-1897 (Minn. Aug. 12, 2026), citing Phipps v. Clark Oil & Refining Corp., 408 N.W.2d 569, 571 (Minn. 1987); Dukowitz v. Hannon Security Services, 841 N.W.2d 147 (Minn. 2014), No. A11-1481)
“In Phipps v. Clark Oil & Refining Corp., we recognized a narrow common-law cause of action for wrongful discharge based on public policy, even in cases involving at-will employment.”
“In Phipps, we recognized a narrow publicpolicy exception to the employment-at-will rule.”
Implied contract exception: recognized?RecognizedVerified Sep 25, 2026 · 2 official sources
In Minnesota, employee handbook provisions can be enforceable as a unilateral employment contract, even when employment is for an indefinite duration. (Hall v. City of Plainview, No. A19-0606 (Minn. Feb. 3, 2021), syllabus, applying Pine River State Bank v. Mettille, 333 N.W.2d 622 (Minn. 1983); Hovind v. Bristol Place Corp., No. 08-597 (D. Minn. Oct. 24, 2008), quoting Pine River State Bank v. Mettille, 333 N.W.2d 622, 626 (Minn. 1983))
“Disclaimer language in an employee handbook did not unambiguously preclude finding an enforceable unilateral employment contract between an employer and an employee that obligates that employer to pay accrued paid time off following the end of the employee’s employment.”
“Under Minnesota law, “where an employment contract is for an indefinite duration, such indefiniteness itself does not preclude handbook provisions on job security from being enforceable, whether they are proffered at the time of the original hiring or later, when the parties have agreed to be bound thereby.””
Good faith and fair dealing exception: recognized?Not recognizedVerified Sep 25, 2026 · 2 official sources
Minnesota courts have declined to read an implied covenant of good faith and fair dealing into employment contracts. (Mandel v. Multiband Corp., No. A15-1133 (Minn. Ct. App. Mar. 28, 2016) (unpublished), citing Hunt v. IBM Mid Am. Emps. Fed. Credit Union, 384 N.W.2d 853, 858 (Minn. 1986); Good v. Ameriprise Financial, Inc., No. 06-CV-1027 (D. Minn. Jan. 18, 2008), citing Hunt v. IBM Mid Am. Employees Fed. Credit Union, 384 N.W.2d 853, 858 (Minn. 1986))
“Minnesota courts have consistently declined to read the implied covenant into employment contracts.”
“See Hunt v. IBM Mid Am. Employees Fed. Credit Union, 384 N.W.2d 853, 858 (Minn. 1986) (under Minnesota law, there is no implied duty of good faith and fair dealing in employment contracts).”
Service letter (reason for termination)
Do you have to give a written reason for the termination on request?Yes, on requestVerified Sep 24, 2026 · 2 official pages from the same agency
An involuntarily terminated employee may request the reason in writing within 15 working days of termination; the employer must give the truthful reason in writing within 10 working days of receiving the request. (Minn. Stat. § 181.933, subd. 1)
“An employee who has been involuntarily terminated may, within 15 working days following such termination, request in writing that the employer inform the employee of the reason for the termination. Within ten working days following receipt of such request, an employer shall inform the terminated employee in writing of the truthful reason for the termination.”
“An employer must give a truthful reason why an employee was terminated, if requested in writing by the employee within 15 working-days of termination. The employer has 10 working-days from receipt of the request to give a truthful reason in writing for the termination.”
Pending verification:
Minnesota and its neighbors
| State | Final pay after firing | Final pay after quitting | Minimum wage | Paid sick leave |
|---|---|---|---|---|
| Minnesota | 24 hours after request | First regular payday; if it is less than 5 calendar days away, the second payday, but no later than 20 calendar days | $11.41 per hour | Yes, statewide |
| North Dakota | Next regular payday | Next regular payday | $7.25 per hour | Pending verification. Official source (nd.gov). |
| South Dakota | Next regular payday | Next regular payday | $11.85 per hour | Pending verification. Official source (dlr.sd.gov). |
| Iowa | Next regular payday | Next regular payday | $7.25 per hour | No statewide law |
| Wisconsin | Pending verification. Official source (dwd.wisconsin.gov). | Pending verification. Official source (dwd.wisconsin.gov). | $7.25 per hour | No statewide law |
Verified rules only; open a state for its sources.
What an employee costs in Minnesota
Every employer pays Social Security 6.2% (Publication 15), Medicare 1.45% (Topic 751) and FUTA (Topic 759). Minnesota adds its unemployment insurance tax:
| Minnesota payroll tax, 2026 | Amount |
|---|---|
| Taxable wage base per employee | $44,000 |
| Rates for experience-rated employers | 0.40% to 9.30% |
| New-employer rate | Average rate for your industry |
| FUTA credit reduction | None for 2025 or 2026 |
| Estimated employer taxes on a $40,000 salary | $3,102 (7.8%) |
The estimate counts FUTA at 0.6% of the first $7,000 ($42 per employee), which assumes the full FUTA credit (Topic 759).
Estimate for a new employer and a full year, without the state tax; check with your payroll provider. Sources: U.S. DOL, State UI Laws, July 2026, page 3; U.S. DOL, FUTA credit reductions.
Federal wage enforcement in Minnesota
In FY2021 to FY2025, the federal Wage and Hour Division concluded 484 cases in Minnesota (n = 484), 400 with violations, finding $7,528,448 in back wages owed to 5,581 employees and assessing $1,602,376 in civil money penalties (DOL enforcement data). Overtime back wages were part of 64% of the violation cases. OSHA opened 6,849 inspections in the same years (OSHA data). Enforcement data is not a violation rate: it shows where federal investigators looked. Wage violations by industry.
Minnesota runs its own OSHA-approved State Plan that covers private employers, so workplace safety rules for most private workplaces in Minnesota are enforced by the state program rather than by federal OSHA (OSHA: State Plans).
Changes coming in 2027
- Minimum wage, from Jan 1, 2027: $11.87/hour (now $11.41/hour). Confirmed by the agency (dli.mn.gov).
- Other, from Jan 1, 2027: $9.68/hour (now $9.31/hour). Confirmed by the agency (dli.mn.gov).
- Minimum wage (Minneapolis, MN), from Jan 1, 2027: $17.02/hour (now $16.37/hour). Confirmed by the agency (minimumwage.minneapolismn.gov).
- Minimum wage (Saint Paul, MN), from Jan 1, 2027: the new amount is not announced yet (stpaul.gov).
- Minimum wage (Saint Paul, MN), from Jul 1, 2027: $15.00/hour (now $14.25/hour). Scheduled in law (stpaul.gov).
Changelog
- Sep 24, 2026: first verified, 12 rules.
- Sep 26, 2026: verified: payday frequency, now backed by two independent official sources. (revisor.mn.gov)
- Sep 26, 2026: verified: at-will exceptions (good faith covenant), now backed by two independent official sources. (govinfo.gov)
- Sep 26, 2026: verified: at-will exceptions (implied contract), now backed by two independent official sources. (govinfo.gov)
Questions about Minnesota employment laws
What is the minimum wage in Minnesota?
Minnesota's state minimum wage is $11.41 per hour for all employers. (Minnesota minimum wage law (DOL WHD state minimum wage table, updated July 1, 2026))
Is Minnesota an at-will state?
Yes. Minnesota follows at-will employment, with exceptions. Of the 3 common exceptions, we have verified 3, and 2 are recognized in Minnesota (Wredberg v. Canvas Health, Inc., No. A24-1897 (Minn. Aug. 12, 2026), citing Phipps v. Clark Oil & Refining Corp., 408 N.W.2d 569, 571 (Minn. 1987)).
When is the final paycheck due after firing someone in Minnesota?
When an employer discharges an employee, earned and unpaid wages are immediately due upon the employee's demand; if they are not paid within 24 hours after demand, the employer is in default and penalties can accrue. (Minn. Stat. § 181.13(a))
Sources (21)
- Minnesota minimum wage law (DOL WHD state minimum wage table, updated July 1, 2026)
- Minnesota Department of Labor and Industry news release
- Minnesota payday law (DOL WHD State Payday Requirements, footnote 11)
- Minn. Laws 2026, ch. 106, art. 15, sec. 5 (amending Minn. Stat. § 181.101; paragraph (a) restated without change)
- Minn. Stat. § 181.13(a)
- Minnesota Department of Labor and Industry, Employment termination
- Minn. Stat. § 181.14(a)
- Minn. Stat. § 181.74, subd. 1
- Minn. Stat. § 181.9446
- Minnesota DLI, Earned sick and safe time (ESST)
- Minnesota DLI, FAQs: Earned sick and safe time (ESST)
- Minnesota DLI, ESST annual report (February 2026)
- Minn. Stat. § 181.9445, subd. 6
- Mandel v. Multiband Corp., No. A15-1133 (Minn. Ct. App. Mar. 28, 2016) (unpublished), citing Hunt v. IBM Mid Am. Emps. Fed. Credit Union, 384 N.W.2d 853, 858 (Minn. 1986)
- Good v. Ameriprise Financial, Inc., No. 06-CV-1027 (D. Minn. Jan. 18, 2008), citing Hunt v. IBM Mid Am. Employees Fed. Credit Union, 384 N.W.2d 853, 858 (Minn. 1986)
- Hall v. City of Plainview, No. A19-0606 (Minn. Feb. 3, 2021), syllabus, applying Pine River State Bank v. Mettille, 333 N.W.2d 622 (Minn. 1983)
- Hovind v. Bristol Place Corp., No. 08-597 (D. Minn. Oct. 24, 2008), quoting Pine River State Bank v. Mettille, 333 N.W.2d 622, 626 (Minn. 1983)
- Wredberg v. Canvas Health, Inc., No. A24-1897 (Minn. Aug. 12, 2026), citing Phipps v. Clark Oil & Refining Corp., 408 N.W.2d 569, 571 (Minn. 1987)
- Dukowitz v. Hannon Security Services, 841 N.W.2d 147 (Minn. 2014), No. A11-1481
- Minn. Stat. § 181.933, subd. 1
- U.S. Department of Labor: State labor offices
Checked Sep 27, 2026 · How we verify every rule · Report an error
General information, not legal advice. Not a substitute for the advice of an attorney. This page is for general information only and isn’t legal, financial or tax advice. Laws vary by state and change; check the official source or talk to a qualified professional about your situation. Report an error