It is hard to believe that January is almost in the books!
There were significant employment law changes implemented in 2024, one was rolled back in 2025, and there is a ton of uncertainty regarding policies at the federal level. There are also changes in Minnesota law that your organization may or may not be aware of.
What to look out for:
Feel free to reach out to [email protected] or call 763.228.8496
There were significant employment law changes implemented in 2024, one was rolled back in 2025, and there is a ton of uncertainty regarding policies at the federal level. There are also changes in Minnesota law that your organization may or may not be aware of.
What to look out for:
- Regardless of political leanings, increased enforcement of immigration is a reality. Businesses should audit I9s and review I9 / immigration status policies. If so inclined, you could also provide employees with a “cheat sheet” to keep in their wallet outlining how they should respond to contact from immigration officials both at work and at home. St. Paul College provided an amazing sample which you can find here.
- Updates to protected classes. At the federal level, transgender status is not a protected class. That being said, existing transgender rights are actively being eliminated, as has funding for DEIJ initiatives. This has led to difficulties and confusion in the armed forces, government agencies and businesses as they struggle to assess their investments in DEIJ initiatives. In Minnesota we continue to have expansive protections for employees.
- Audits of pay practices. There were two dramatic increases to the salary threshold for exemption status. The 1/1/25 increase to $58,656 was rolled back, as was the 7/1/24 increase to $43,888. The former threshold of $35,568 is back in effect. From a pragmatic standpoint, this minimum salary is unlikely to attract or retain employees. Stay tuned as this plays out in the courts. It would be helpful for organizations to define a Compensation Philosophy and audit / update job descriptions to identify exemption status as well as core job duties.
- Be sure to educate yourself about minimum salary thresholds, break requirements, time off, and more if you have employees outside of Minnesota.
- In Minnesota transgender status, gender expression, gender identity and LBGTQ+ status are all protected. There is no need to update EEO and harassment policies if these protected classes are already outlined in your handbook.
- Updates to minimum wage at the city level. There are city-specific ordinances for Minneapolis, St. Paul, Bloomington and Duluth. Employers must follow whichever law or ordinance is most beneficial to the employee. Again, the minimum wage is unlikely to attract potential employees.
- Pay transparency. As of /1/25, employers must include a realistic salary range and a general overview of benefits in all job postings. For example, a salary range of $50,000 to $400,00 is not a realistic salary range. A listing of “competitive benefits” may be insufficient.
- Employers are no longer allowed to inquire about prior salary history.
- A statewide law addressing Earned Sick and Safe Time (ESST) went into effect January of 2024. This law is not always consistent with city ordinances. The employer must comply with the law/ordinance is most beneficial to the employee.
- Pregnancy protections have been expanded.
- Beginning January of 2026, employees and employers will be required to contribute to a statewide fund that will provide partial compensation during qualified absences from work.
- Audit I9s
- Update your employee handbook
- Educate employees about essential HR policies (employment at will, EEO, harassment prevention, etc.)
- Audit pay practices. Update job descriptions and conduct a compensation analysis for both internal and external equity.
Feel free to reach out to [email protected] or call 763.228.8496