Minnesota Employment Law Updates: What to Know for 2025 & What’s Coming in 2026
2025: What Employers Are Managing Now
Throughout 2025, Minnesota employers have continued to adjust to evolving workforce expectations and regulations. Two areas remain top of mind:
Employee Pay & Transparency
Wage compliance continues to be a priority, with employers ensuring accurate pay rates, proper wage notices, and clear communication around compensation.
Earned Sick and Safe Time (ESST)
Minnesota’s ESST law remains an important part of employee benefits. Employers are responsible for tracking accruals, maintaining accurate balances, and ensuring employees understand how and when time can be used.
These requirements reinforce the importance of clear communication, consistent payroll practices, and reliable timekeeping systems.
Looking Ahead to 2026: Big Changes on the Horizon
January 1, 2026, brings two significant updates for Minnesota employers:
Minimum Wage Increase
Minnesota’s minimum wage will increase on January 1, 2026, based on annual inflation adjustments. Employers should plan ahead by reviewing pay rates, updating payroll systems, and preparing updated wage notices.
New Minnesota Paid Family & Medical Leave (PFML) Program
Starting January 1, 2026, Minnesota will launch a statewide Paid Family and Medical Leave program. This program will provide employees with paid, job-protected time off for qualifying family or medical reasons.
Key highlights include:
- Up to 12 weeks of medical leave
- Up to 12 weeks of family leave
- A combined maximum of 20 weeks per year
- Partial wage replacement funded through payroll premiums
Employers will be responsible for payroll deductions, required postings, and employee notifications as part of this new program.
How Indrotec Supports Employers
Navigating these changes takes planning — and that’s where Indrotec comes in. We help support compliance by:
- Monitoring state and local law changes
- Assisting with workforce planning and communication
- Supporting payroll, onboarding, and policy updates
- Helping employers prepare ahead of key deadlines
Staying informed today helps avoid surprises tomorrow.