On 5/27/2016, the City of Minneapolis passed an ordinance mandating all employers to provide paid sick leave to their Covered Employees. The ordinance will be effective 1/1/2017.

Covered Employers

All employers with 6+ employees, regardless of location, will be required to offer up to 48 hours of paid sick leave each year to Covered Employees working in Minneapolis. Employers with five or fewer employees will be required to provide the same amount of sick leave, however it may be unpaid. Federal, state, county, and local government are excluded from the definition of employer.

Under the delayed implementation provision of the ordinance, for the first five years following the ordinance’s effective date, new companies (except chain establishments) will be permitted to provide unpaid sick leave during the first year they are in business.

Covered Employees

Employees who work at least 80 hours per year in Minneapolis and covered by the ordinance, including full-time, part-time, and temporary employees.

Accrual, Caps, and Carry-Over

Covered Employees begin accruing paid sick leave at a rate of one hour for every 30 hours worked on the first day of employment; however, employees may not use the paid sick leave until they have worked for the employer for at least 90 days. Employers may also cap the amount of paid sick leave accrued in any one year to 48 hours.

Employees must be permitted to carry over unused paid sick leave to the next year; however, employers may restrict the accumulation of unused paid sick leave to a maximum of 80 hours at any one time.

Please note that the ordinance does not require employers to pay out employees for unused paid sick leave upon the employee’s termination of employment. However, an employee who separates and is rehired within 90 days, must have their previously accrued and used paid sick leave reinstated.

Notice, Posting, and Recordkeeping

Upon request by employees, employers must provide a written calculation of their accrued paid sick leave as well as the amount of leave used.

The ordinance requires employers to display a poster regarding employee paid sick leave rights in a conspicuous place at each worksite. The poster is provided by the Minneapolis Department of Civil Rights.

Employers must also maintain records of the accrued paid sick leave and amount of leave used for each employee. These records shall be retained for at least three years in addition to the current calendar year and upon request, employers must allow inspection of such records by employees and the Minneapolis Department of Civil Rights.

Action Items

Employers with employees working in Minneapolis should review their current paid sick leave policies to ensure that they are ready to comply with the new ordinance beginning 1/1/2017. Additionally, the employee handbook should be revisited to ensure that it reflects any updates to the company’s paid sick leave policy.

Additional Information

The official website of the City of Minneapolis has additional information on the new Minneapolis paid sick leave law, including the text of the ordinance.


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Bonnie Mangels – Bonnie is the Corporate Counsel and Senior Compliance Manager for Sequoia. When not inundated in paperwork and legal briefs, her interests include arts and crafts, bunnies, and the Bay Area.