Minnesota HR Consulting & Employment Law for Small Businesses
Minnesota enacted landmark employment legislation in 2023, including a statewide ban on all new non-compete agreements and a paid family and medical leave program launching in 2026.
Minnesota employers face a rapidly changing compliance environment. Effective 2023, all new non-compete agreements in Minnesota are void and unenforceable, making Minnesota one of only a handful of states to fully prohibit them. Minnesota PPFML (Paid Parental and Family Medical Leave) begins January 2026, providing up to 20 weeks of paid leave. Minnesota also has one of the highest minimum wages in the Midwest.
Note: This guide is for informational purposes only and does not constitute legal advice. Employment laws change frequently. Consult a qualified employment attorney for advice specific to your situation.
Key Minnesota Employment Laws
Minnesota Non-Compete Ban (2023)
Effective July 1, 2023, all non-compete agreements entered into in Minnesota are void and unenforceable, regardless of the employee's earnings level. This makes Minnesota one of only a handful of states (along with California, North Dakota, and Oklahoma) to prohibit non-competes outright. Existing pre-July 2023 agreements remain governed by prior law.
Minnesota Earned Sick and Safe Time
Effective January 1, 2024, all Minnesota employers must provide earned sick and safe time to employees who work at least 80 hours per year in Minnesota. Employees accrue 1 hour per 30 hours worked, up to 48 hours per year. Small employers are not exempt.
Minnesota PPFML (Paid Leave, launching 2026)
Minnesota's Paid Parental and Family Medical Leave program begins payroll contributions in January 2026 and benefits in January 2026. The program provides up to 20 weeks of combined paid family and medical leave per year. Employer and employee share the contribution.
Minnesota Human Rights Act
The MHRA is one of the broadest state anti-discrimination laws in the country, applying to employers of any size. It covers race, color, creed, religion, national origin, sex, marital status, disability, public assistance status, sexual orientation, and age. Enforcement is through the Minnesota Department of Human Rights.
Compliance Thresholds for Minnesota Employers
1+ Employees: employees
- Minnesota minimum wage applies (above federal, two-tier system by employer revenue)
- Minnesota Human Rights Act anti-discrimination protections (any size employer)
- Minnesota Earned Sick and Safe Time (effective 2024 -- all employers)
20+ Employees: employees
- Minnesota PPFML contributions begin 2026 (employer and employee shares)
- Minnesota Parental Leave Act (12 weeks unpaid parental leave) applies at 21+ employees
50+ Employees: employees
- Federal FMLA applies
- ACA employer mandate
Common Questions About Minnesota Employment Law
Are non-compete agreements enforceable in Minnesota?
No. Minnesota enacted a law effective July 1, 2023, that voids all new non-compete agreements. Agreements entered before July 1, 2023 remain subject to prior law. Non-solicitation agreements that protect genuine trade secrets and client relationships may still be valid.
Does Minnesota require paid sick leave?
Yes. Effective January 1, 2024, all Minnesota employers must provide earned sick and safe time to employees who work at least 80 hours per year in Minnesota. Employees accrue 1 hour per 30 hours worked, up to 48 hours per year. The law applies regardless of employer size.
What is Minnesota's paid family leave program?
Minnesota's PPFML program launches in 2026, providing eligible employees up to 20 weeks of combined paid family and medical leave per year. Contributions begin in 2026. The program covers bonding, serious health conditions, and qualifying military events.
What is the Minnesota minimum wage?
Minnesota has a two-tier minimum wage: a higher large employer rate for companies with annual revenues above $500,000, and a lower small employer rate for those below. Both rates are adjusted annually. Minneapolis and Saint Paul may have higher local minimum wages.
What does the Minnesota Human Rights Act cover?
The MHRA covers a broad range of protected classes including race, color, creed, religion, national origin, sex, marital status, disability, public assistance status, sexual orientation, age, and familial status. It applies to all employers regardless of size, providing broader coverage than federal Title VII.
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