Minnesota ESST administrative rules took effect July 6 — here's what changed

Minnesota's Department of Labor and Industry adopted administrative rules under the existing ESST statute to close the operational gaps the law left open. The rules don't create new obligations — they clarify how specific provisions apply.

They took effect July 6, 2026, and address accrual timing, eligibility determinations, indeterminate shifts, documentation, and more.

For employees who accrue ESST rather than receive it via frontloading, the rules require that hours be credited no later than the regular payday following the close of each pay period. Employees may use accrued ESST as soon as it is credited.

Employers are not required to credit ESST in increments smaller than one hour. Any partial hours that don't yet add up to a full hour must carry forward into the next pay period — they cannot be discarded.

If an employer wants to switch between accrual and frontloading methods, the change is not effective until the first day of the next accrual year. Employees must receive written notice before that date.

ESST eligibility applies to employees anticipated to work at least 80 hours in a year for the employer in Minnesota. The rules clarify that this determination must be made in "good faith" — meaning at minimum an honest evaluation of the employee's anticipated schedule and work location.

Good faith cuts both ways. If an employer anticipates an employee won't hit 80 hours but the employee actually does, ESST eligibility applies from that point forward. Accurate time and attendance records are the most direct way to document this in real time.

An indeterminate shift is one defined by business need rather than a fixed number of hours — common in hospitality, staffing, and other variable-schedule environments. When an employee misses one entirely, employers must estimate the shift length using one of three permitted methods:

• The hours worked by the replacement worker, if any
• The hours the employee worked during their most recent similar shift
• The greatest number of hours worked by a similarly situated employee who covered that shift

If the employee starts a shift and leaves early, the employer must first determine the total shift length using one of the methods above, subtract the hours already worked, and deduct only the remainder from the ESST balance.

If an employee is rehired within 180 days of separation and their unused ESST was not paid out at termination, the employer must reinstate that ESST. The reinstated amount may be capped at 80 hours, unless a higher amount is required by applicable law, contract, or agreement.

Documentation and misuse: what the rules clarify

Employers may require documentation for absences exceeding two consecutive scheduled workdays. That requirement must be clearly communicated to the employee, and the employee must be given a reasonable amount of time to provide it.

The rules also address suspected misuse. Employers may request documentation even when an absence is under two days if there is a pattern or clear instance of suspected misuse — including repeated use immediately before or after scheduled days off, or use on a day when another leave request was previously denied.

One firm limitation: past misuse cannot be used to deny an employee's future ESST request for a qualifying purpose.

Local ordinances still govern where they're stricter

Minnesota's ESST rules do not override local sick leave ordinances. Employers in Minneapolis, St. Paul, Duluth, or any other jurisdiction with a local ESST ordinance must apply whichever standard provides the greater benefit to employees. The new rules add clarity at the state level — they don't reduce any obligation that already exists locally.

For employers managing leave accruals and balances across multiple Minnesota locations, that layered compliance picture remains in place.

Minnesota has been active on workforce compliance. If you're also tracking the state's paid family and medical leave program, see our Minnesota PFL employer guide.

Note: This information is for informational purposes only and does not constitute formal tax, legal, or compliance advice. Always consult with qualified tax advisors, legal counsel, and your organization's internal teams for guidance specific to your situation. Additional regulations may apply. For the most accurate and up-to-date information, refer to official government resources and regulatory agencies.