2025 Minnesota Legislative Update for Employers: Meal Breaks, Sick Time and More

Minnesota’s 2025 legislative session and June 10 special session closed with a handful of new and amended employment laws of which employers should be aware. Below is a summary of significant changes impacting Minnesota workplaces.

Meal and Rest Breaks – New Requirements and Remedies

The Legislature amended Minnesota’s meal and rest break laws for the first time since they were enacted in the late 1980s. Currently, employers must allow employees “adequate time” within each four hours of work to use the nearest restroom. Effective January 1, 2026, however, employers must provide employees a rest break of at least 15 minutes or enough time to use the nearest restroom – whichever is longer – for every four consecutive hours worked. 

The meal break standard is also changing. Currently, employers must permit employees who work eight or more hours “sufficient time” to eat a meal. Effective January 1, 2026, employers must allow employees working six or more consecutive hours to take a 30-minute meal break.

If an employer fails to provide these breaks, employees are entitled to compensation at their regular rate of pay plus an equal amount in liquidated damages. Employers are still not required to pay for the 30-minute meal break unless a violation occurs. 

The amendments also suggest that the Minnesota Department of Labor and Industry will issue rulemaking regarding meal and rest breaks, so further guidance or clarification may be coming. 

Earned Sick and Safe Time (ESST) Changes and Clarifications

Several changes were made to Minnesota’s ESST law which, with one exception noted below, go into effect on July 1, 2025.

Originally, employers could require employees to provide notice of an unforeseeable need to use ESST “as soon as practicable.” Going forward, employers may require employees to give notice of an unforeseeable need “as reasonably required” by their employer, offering more discretion in setting expectations.

The amendments also lowered the threshold for requiring documentation that an employee is using ESST for a covered reason – from absences of more than three consecutive scheduled workdays to more than two consecutive scheduled work days (i.e., when the employee is absent for three or more consecutive scheduled work days).

While employers still cannot require employees to find a replacement worker as a condition of using ESST, the law now clarifies that employees may voluntarily trade shifts.

Finally, effective January 1, 2026, an employer may advance ESST to an employee prior to its accrual, based on the employee’s anticipated hours for the year. However, if the employee ends up working more hours than expected, the employer must reconcile any shortfall.

Paid Family and Medical Leave (PFML) Premium Cap Updated

While several bills were introduced that could have resulted in significant changes to Minnesota’s PFML program, including postponing implementation for a year, the 2025 session ended with only a couple of minor changes. Most notably, the total premium cap for PFML was slightly reduced from 1.2% to 1.1% of taxable wages. The amendment did not change the 0.88% premium rate effective beginning January 1, 2026, nor the ability of employers to charge back half of the premium to employees via payroll deduction. 

Enhanced Penalties for Unemployment Insurance Misrepresentation

Effective October 1, 2025, the financial consequences for employers that misrepresent information related to unemployment benefits increase. Specifically, if an employer makes a false statement or representation (without a good faith belief that the information is correct) or knowingly fails to disclose a material fact in order to assist an applicant in fraudulently obtaining benefits, to prevent or reduce benefits that an applicant is owed, or to avoid required employer tax obligations, the employer will now face a heightened penalty. The penalty is now the greater of $500 or 100% (increased from 50%) of the amount tied to the violation. This includes any unemployment benefits improperly paid, benefits wrongfully withheld or employer contributions avoided to the Minnesota Unemployment Insurance Program or Workforce Development Fund.

New Misclassification Fraud Impact Reporting Requirement for State Agencies

A new interagency reporting requirement mandates that three Minnesota agencies coordinate to analyze the impact of worker misclassification. The first report is due January 15, 2027, with updates every six years. This new report is expected to result in increased oversight and coordination between the Minnesota Department of Revenue, DEED and MNDOLI, and may inform future policy changes, enforcement strategies or new penalties – especially in industries where misclassification is found to be widespread.

Final Thoughts

While many of the 2025 amendments may appear modest in isolation, particularly in contrast to recent years, together they represent a shift in compliance risk and employee rights. With agencies like the Minnesota Department of Labor and Industry, DEED and the Department of Revenue directed to coordinate enforcement and share data, employers should anticipate increased scrutiny and a more unified enforcement front. These changes present both legal and operational challenges that may not be fully addressed through HR software updates or generic policy templates, and which require careful planning and implementation. 

Please reach out to your Fredrikson Employment, Labor & Benefits attorney if you have any questions about these 2025 Minnesota legislative changes or for assistance with policy updates, compliance audits, training and other risk mitigation measures.