Special Session Possible?

July 4, President Trump signed a sweeping federal budget bill (One Bill Beautiful Bill) into law. The bill could impact Minnesota’s finances and potentially bring lawmakers back for another special session. The focus will likely be just addressing budget shortfalls in response to federal budget changes.

Legislature

Sen. Hoffman According to the Star Tribune:

State Sen. John Hoffman was discharged from the hospital on Monday and moved to a rehab facility. Hoffman and his wife were shot multiple times last month during an assassination attempt. A spokesperson for the family released a photo late Monday of Hoffman smiling and giving a thumbs up as he leaves a hospital room, reports Allison Kite.

Employment Practices

Earned Safe & Sick Time 

Labor law updates for 2025 and 2026

Minnesota employers should prepare for recent and future labor law changes, including updates to earned sick and safe time (ESST) and break and rest period requirements.

Reminder: Earned Sick & Safe Time Changes Took Effect July 1

One of the employment-related changes passed by the Legislature this session includes updates to Minnesota’s Earned Sick and Safe Time (ESST) law.

While 2025 brought only a few labor policy shifts, these ESST tweaks are important for employers and employees to note:

• Documentation: Employers may request reasonable documentation after two consecutive scheduled workdays of ESST use, down from three.
• Notice Requirement: Employers can now require employees to give notice as "reasonably required by the employer" for unforeseeable ESST absences, rather than as soon as practicable.
• Shift Swapping: The law now makes it clear that employees may voluntarily trade or seek a replacement for their shift.

Break and rest period updates

Starting Jan. 1, 2026, employers must allow employees to take:

• A paid rest or restroom break that is at least 15 minutes for every four consecutive hours worked.
• An unpaid meal break that is at least 30 minutes when working six or more consecutive hours.

Employers who fail to comply may be required to pay compensation and liquidated damages.

Webinars: Minnesota labor law updates and support for pregnant and nursing employees

1. Updates to Minnesota labor laws

• Date: July 17, from 2-3 p.m.
• Join us to learn about recent changes to Minnesota labor laws from the past two years. Topics include ESST, break requirements and nursing accommodations under the Women’s Economic Security Act (WESA).
• Register for the webinar.

2. Supporting pregnant and nursing employees in the workplace

• Dates:
  • Aug. 6, from 10-11:15 a.m. Register for the webinar.
  • Aug. 14, from 2-3:15 p.m. Register for the webinar.

This webinar will focus on WESA and its impact on employees and employers. We will also highlight National Breastfeeding Month and WESA’s protections for nursing employees.

Paid Family & Medical Leave Implementation

Upcoming webinars: learn more about Paid Leave

Paid Leave hosts a regular monthly webinar series to help Minnesotans understand how Paid Leave will work and how it may benefit you or your organization. Paid Leave also hosts webinars on specific topics, like one last month on employer accounts and responsibilities under Paid Leave. Can’t make it to a webinar? Recordings from past events are available on our website: Public engagement events / Minnesota Paid Leave 

Next webinar: 

Intro to Paid Leave

📆 Thursday July 10, 2025

⌚12:00pm-1:00pm CT

Learn more and register Here.

Minnesota Paid Leave Publishes Adopted Rules 

Paid family and medical leave coverage will be available to all eligible Minnesota employees beginning January 1, 2026. The law provides job protections and partial wage replacement, paid by the state, to individuals who are unable to work due to a qualifying condition.

The Minnesota Legislature passed the Paid Leave law in 2023 and charged the Minnesota Department of Employment and Economic Development (DEED) with building and managing the Paid Leave program. In order to build Paid Leave, the program has developed rules necessary to implement Paid Leave.

Following the expedited rulemaking process, Paid Leave published its adopted rules in the State Register on June 16, 2025. You can view a copy of the rules linked Here.

The DEED Premium Calculator can be found Here.

Updated tax guidance for Paid Leave 

On January 15, 2025, the Internal Revenue Service (IRS) issued a ruling which explains how the federal government will approach income taxes for premiums and benefits received from a program like Minnesota Paid Leave.

This month, Paid Leave published new guidance on how Paid Leave will be treated by state and federal taxes. The guidance covers different situations including taxes for benefit payments and the premiums paid by both employers and employees.

Learn more Here

Tim Wilkin, Capitol Strategies, Inc.
7/9/25