New Minnesota Laws to Effect Businesses

The Minnesota State Legislature has passed new bills which if signed by Governor Tim Walz, will have effects on all businesses in the state of Minnesota.

Ban on Non-Compete Agreements

The Minnesota legislature has passed a bill which will ban non-compete agreements.  Once signed by Governor Walz, this ban will take effect on July 1, 2023.  Existing non-compete agreements will not be prohibited by the new law.  The law will not include an exception for C-suite level employees.

Recreational Marijuana

The Minnesota legislature has passed a bill which will legalize the use, possession, and growing of recreational marijuana.  Once signed by Governor Walz(to be signed on 5/30/23), Minnesota will become the 23rd state in the nation to have legalized recreational use.  Upon signature, recreational marijuana will be legal beginning August 1, 2023- however will not be for sale until the state sets up the proper infrastructure to support and regulate the industry.

Included in the legislation is a ban on employers from discriminating against, or firing an employee who has tested positive for THC- however certain jobs in federal government or education are exempt.

Earned Sick and Safe Leave Law (ESSL)

Governor Walz signed into this bill into law on May 25th. Covered employees will be able to earn up to 48 hours of paid leave for a variety of purposes, and will take effect on January 1, 2024.  This law will not preempt local paid sick leave laws (Bloomington, Minneapolis, & Saint Paul).

The law will cover all employees who work in Minnesota for at least 80 hours per year.  Once the 80 hours of work are completed, the employees may use the ESSL paid time off.  Under this law, there will be no small business exemption, meaning that employers with one or more employees will all be included.

The reasons for using ESSL include:

  • Employee’s own mental or physical illness, injury, or other health issue, medical appointments, etc.
  • To care for a family member
  • Absence due to domestic abuse, sexual assault or stalking of the employee or family member
  • Closure of the place of business due to weather, public emergency, or for a family member for the same reasons
  • An employee is awaiting a diagnostic result, and is unable to return to the office until the results come in, if the employee is unable
  • The employee or family member would jeopardize the health of others due to a communicable disease

Continue to follow as we track the signature of other bills for Minnesota. Contact us for support in implementing policies for these new laws, or for additional information