Minneapolis Paid Sick Leave

Minneapolis Mayor Betsy Hodges has signed Ordinance No. 2016-040, amending Title 2 of the Minneapolis Code of Ordinances, adding a new Chapter 40 relating to Workplace Regulations.  The new chapter will require employers in the City to provide sick leave to employees. Employers with six or more employees must provide paid leave. Smaller employers must also provide leave, but it may be unpaid. The ordinance is effective July 1, 2017.

Overview

Employee Coverage.  Covers all employees (including temporary and part-time employees) who perform work within the geographic boundaries of the Minneapolis for at least 80 hours in a year for an employer.

Employer Coverage.  Covers all private and City employers with covered employees. For purposes of determining whether sick leave must be paid, an employer’s size is based upon the average number of employees per week during the previous calendar year. All employees must be counted, regardless of whether they work in the City.

Note: Special rules for new employers. Employers, other than chain establishments, operating in the first 12 months after hiring their first employee must provide unpaid sick time but are not required to provide paid sick time. After 12 months, the employer will be subject to the ordinance providing paid sick time.  Employer size for a new business is based on the average number of employees per week during the first 90 days after the first employee began work.

Accrual.  Employees begin accruing leave on July 1, 2017 or their date of hire, whichever is later. Employees must accrue a minimum of one hour of sick  leave for every 30 hours worked, up to a maximum of 48 hours in a calendar or fiscal year. Employers must permit employees to carry over accrued but unused sick leave into the following year. However, employers may cap total accrual at 80 hours.

Use of Leave.  Employees may use accrued leave beginning 90 calendar days after the start of their employment. After 90 calendar days of employment, employees may use sick and safe time as it is accrued.

An employee may use accrued sick leave for the following reasons:

·        The employee's or a family member’s:

o   Mental or physical illness, injury, or health condition;

o   Need for medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition; or

o   Need for preventive medical or health care;

·        When the employee or family member is a victim of domestic abuse, sexual assault, or stalking and the absence is to:

o   Seek medical attention;

o   Obtain services from a victim services organization;

o   Receive psychological or other counseling;

o   Seek relocation; or

o   Take legal action, including preparing for or participating in a civil or criminal legal proceeding.

·        The closure of the employee's or a family member’s place of business by order of a public official to limit exposure to an infectious agent, biological toxin, or hazardous material or other public health emergency.

·        To care for a family member whose school or place of care has been closed due to inclement weather, loss of power, loss of heating, loss of water, or other unexpected closure.

Family member is defined as the employee’s:

·        Child, step-child, adopted child, foster child, or adult child;

·        Spouse;

·        Sibling;

·        Parent, step-parent, mother-in-law, or father-in-law;

·        Grandchild;

·        Grandparent;

·        Guardian or ward;

·        Member of the employee’s household; or

·        Registered domestic partner.

Employee Notice and Documentation.  If the need for leave is foreseeable, employers may require up to seven days’ advance notice. If the need is not foreseeable, an employer may require an employee to give notice of the need for leave as soon as practicable.

If the absence is more than three consecutive days, the employer may require reasonable documentation that the absence is covered by the ordinance.

Paid Leave.  Employees who work for an employer with fewer than six employees are not entitled to pay while on sick leave. Employers with six or more employees must compensate the employee at the same hourly rate with the same benefits as the employee would have earned during the time the leave is taken. Employees are not entitled to compensation for lost tips or commissions and compensation is only required for hours that an employee is scheduled to have worked.

Note: There are special rules for employers in the construction industry and for health care providers. See Ordinance 2016-040 for details.

Interaction with Existing Paid Time Off (PTO) Policies.  Employers who provide their employees sick and safe time under a paid time off policy or other paid leave policy that meets or exceeds, and does not otherwise conflict, with the minimum standards and requirements of the ordinance are not required to provide additional sick and safe time.

Notice Requirements.  Employers must post a notice created by the City in a conspicuous place at any workplace or job site where any covered employee works. The notice must be posted in English, and any language spoken by at least five percent of the employees at the workplace or job site if published by the City.

Employers that provide an employee handbook to their employees must include a notice of employee rights under the ordinance.

Recordkeeping Requirements.  Upon employee request, the employer must provide, in writing or electronically, the amount of leave the employee has available and the amount he or she has used. Employers can choose a reasonable system for providing this notification, including, but not limited to, listing the information on each pay stub or implementing an online system where employees can access their own information.

Employers must maintain accurate records for each employee showing the accrual and use of sick leave. The records must be retained for a period of at least three years in addition to the current calendar year. An employer must allow an employee to inspect records at a reasonable time and place.

Retaliation Prohibited.  An employer may not interfere with, restrain, or deny an employee their rights under the ordinance.

Call to Action.  Beginning in July 2017, employers with employees working in Minneapolis for at least 80 hours each year must provide sick leave in accordance with the requirements outlined in Ordinance 2016-040. Employers should update leave policies and forms to comply with these new requirements.