Minneapolis, MN: Sick and Safe Time Ordinance Recently Amended

• Ability to frontload paid sick and safe time (“PSST”). Employers can grant a lump sum of 48 PSST hours in the first year following 90 days of employment, but must grant at least 80 PSST hours each subsequent year.  Employers who do not wish to frontload can instead implement the accrual method, which would cap annual accrual to 48 hours per year, and limit usage to 80 hours.
• Payment of PSST. Employers of six or more are required to pay employees their “regular rate of pay” when PSST is used.  The amendment specified certain types of payments that are excluded from the “regular rate of pay,” including: tips, commissions, expense reimbursements, premium payments for overtime work, bonuses, cash or other values in the nature of gifts on special occasions, payments made per bona fide profit-sharing plan or trust or bona fide thrift of savings plan; and employer contributions to a trustee or third person per bona fide plan for providing old-age, retirement, life, accident, or health insurance or similar benefit for employees.  However, employers should review governing plan documents, which may preempt the Ordinance.
• Recordkeeping. Accrual must now be calculated on a monthly basis, at minimum.  Employers must keep record of hours worked by non-exempt employees, as well as accrued and unused PSST hours that are available for use.  Lastly, employers are no longer required to track hours worked in Minneapolis for employees who work occasionally in the city.

 No FAQ, regulations sheet or poster has been released yet by the City of Minneapolis.  Employers should monitor the City of Minneapolis website for more information, including potential changes to the Ordinance, and be prepared to develop or adjust their paid sick leave policy accordingly.

Action Items

1. Contact ManagEase at (888) 230-3231 for assistance in reviewing paid sick leave policies and procedures for compliance, or drafting and implementation of new paid sick leave policies.
2. The required postings have not yet been published. Look for more news from ManagEase or check the City of Minneapolis website for publication at a later date.
3. Ensure timekeeping and payroll procedures are set up to appropriately track PSL usage, accrual (if not frontloaded), and carryover.
4. Ensure managers are trained on handling PSL requests and recordkeeping.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

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