Summary of September 2025 Labor Law Updates for Minneapolis, Minnesota
Brought to you by HKM Employment Attorneys — Minnesota labor law news for employees, HR professionals, and compliance leaders.
September 2025 was relatively quiet in terms of brand-new labor law enactments, but it marked a key court victory affirming Minnesota’s captive audience ban and reinforced ongoing trends in ESST, PFML, and workers’ compensation administration. The heightened visibility during Workplace Rights Week may signal growing enforcement and awareness. Employers in Minnesota should ensure readiness — from revising leave policies and posting requirements to preparing internal systems for PFML and reinforcing training. If you’d like a detailed compliance checklist or help assessing how these changes affect your workforce in Minnesota, feel free to reach out to HKM Employment Attorneys (https://hkm.com).
Captive Audience Ban Challenge Dismissed — Court Ruling
Date: September 3, 2025
Summary:
In Minnesota Chapter of Associated Builders & Contractors v. Ellison, the U.S. Court of Appeals for the Eighth Circuit dismissed a lawsuit challenging Minnesota’s 2023 Employer-Sponsored Meetings or Communications Act (the “captive audience” law). The law prohibits employers from punishing employees who refuse to attend meetings where the employer expresses political or religious views or discusses unionization. The plaintiffs — business groups including the Minnesota Chapter of Associated Builders & Contractors, NFIB, and Laketown Electric — had argued the statute violated the First Amendment and conflicted with the National Labor Relations Act. The appeals court, however, held that state executive officials (Attorney General, DLI Commissioner, and Governor) lacked the required connection to enforcement to be proper defendants under the Ex parte Young doctrine, so the suit was dismissed for lack of jurisdiction.
Implications:
The statute remains in effect and enforceable against employers, giving employees a private cause of action if they face retaliation for refusing to attend prohibited meetings.
Employers should review their policies and training to ensure compliance with the captive audience law.
The ruling leaves open the possibility of future challenges (e.g. by other parties with standing), and the court did not reach the constitutional merits of the law.
Workplace Rights Week 2025 — Agency Initiative
Date: September 21–27, 2025
Summary:
The Minnesota Department of Labor and Industry (DLI) announced the second annual Workplace Rights Week, running Sept. 21–27. The initiative aims to increase awareness among employees and employers of key workplace rights and obligations under Minnesota law, covering topics like earned sick and safe time (ESST), wage & hour laws, and worker safety. The state will partner with community organizations, host mobile clinics, visit worksites, and offer multilingual resources.
Implications:
Employers may see increased inquiries and scrutiny from employees during this period. It’s an opportune time to revisit and reinforce compliance measures (posters, policies, trainings). Employers should ensure all required workplace posting and notice obligations are up-to-date.
Workers’ Compensation Updates — Department Notice
Date: September 2025
Summary:
The DLI’s quarterly COMPACT newsletter for September includes several items relevant to workers’ compensation:
- Reminders about electronic medical record access requests
- Announcements of new benefit and provider fee schedules effective October 1
- Highlights of recent decisions from the Workers’ Compensation Court of Appeals and Minnesota Supreme Court
Implications:
Employers should review the new fee schedules and update any internal billing or reimbursement practices. Ensure compliance with evolving standards for record requests and claims administration. Monitor court decisions to anticipate trends or shifts in compensability or procedures.
ESST Amendments & Legislative Changes — Statutory Update
Date: July 1, 2025 (with ongoing relevance in September)
Summary:
Earlier this year, Minnesota enacted changes to the Earned Sick and Safe Time (ESST) law, effective July 1 and January 1, 2026. Key modifications include:
- Clarifying that the ESST law covers employees anticipated to work at least 80 hours per year for an employer.
- Allowing employers to set reasonable notice requirements for unforeseeable leave and require documentation when leave spans two consecutive workdays.
- Adjusting permissible increments: employees may use ESST in the same increments for which they are paid; the law prohibits requiring use in increments more than four hours or insisting on minimal segments.
- For 2026, a requirement will take effect that employees working six or more consecutive hours receive a 30-minute unpaid meal break and a 15-minute paid rest break.
While these changes predate September, they continue to reshape employer compliance obligations and are especially relevant now as implementation nears.
Implications:
Many employers should update sick leave, attendance, and PTO policies to align with the new ESST rules. HR systems should be configured for permissible increments and documentation thresholds. Employers should prepare for the 2026 break requirement (meal + rest) and ensure scheduling systems and labor forecasting account for it. Training managers and supervisors on the new rules now helps avoid reactive compliance issues later.
Minnesota Paid Family & Medical Leave (PFML) Preparations — On the Horizon
Date: Implementation begins January 1, 2026; reporting begins earlier
Summary:
Though PFML benefits won’t begin until 2026, the law is already moving into its preparatory phase. In September, commentary and guidance emphasize that:
- Employers are required to begin submitting wage detail reports via Minnesota’s unemployment reporting processes.
- Planning is underway for payroll deduction timelines, eligibility rules, and the interaction of PFML with existing leave programs.
- PFML is structured to provide up to 20 weeks of job-protected leave (with separate family and medical leave components, subject to a combined cap) once fully effective.
Implications:
Employers should audit current leave policies for overlap or conflict with PFML (e.g. short-term disability, paid sick leave). Begin internal planning (systems, payroll, communication) to prepare for deduction collection and benefit administration. Train HR and management in advance so that implementation is smoother on January 1, 2026.
Other Statutory & Enforcement Notes (2025 Developments)
Pay Transparency / Salary Range Disclosure: Since January 1, 2025, employers with 30 or more employees must include a salary range or fixed pay rate (and general benefits description) in all job postings.
Minimum Wage Increase: Effective January 1, 2025, Minnesota’s statewide minimum wage rose to $11.13 per hour, with a 90-day training wage of $9.08 for employees under age 20.
Nursing Home Workforce Standards Rule: Effective January 1, 2025, nursing homes must comply with new certification, holiday pay, and posting requirements under expedited rules.
Misclassification / Independent Contractor Law: Litigation continues around Minnesota’s amended misclassification statute, particularly in the construction sector.
Conclusion: Looking Back on Minnesota’s Labor Law Updates from September 2025
As Minnesota courts continue to evolve employee protections—addressing wrongful termination, wage-and-hour, discrimination, contract review, whistleblowing, and ethics investigations—you need counsel familiar with local and federal labor law. At HKM Employment Attorneys in Minneapolis, our dedicated team—including Blaine Balow, Amanda Crain, Emma Denny, Evelyn Doran, Drew Kudlinski, and Mary Olszewska—focuses solely on representing employees in contract disputes, wage claims, and more. We offer thorough contract reviews, EEOC and state filing assistance, and unwavering advocacy under our no‑fee‑unless‑we‑win policy. If the latest legal developments have you reconsidering your rights at work, contact our Minneapolis office to discuss how we can help you pursue meaningful resolution.
