As 2024 unfolds, Minnesota businesses face a landscape reshaped by new laws and regulations. It’s imperative for business leaders and employees alike to stay informed and adapt to these changes promptly. In this blog post, we’ll guide you through the most significant legal shifts affecting businesses in Minnesota, ensuring you’re well-prepared for the road ahead.
Wage Dynamics: Increases and Transparency
Minimum Wage Adjustments
Minnesota has introduced a statewide minimum wage increase to keep pace with inflation. Starting January 1, large employers must pay $10.85 per hour, while small employers must pay $8.85 per hour. Notably, Minneapolis and St. Paul have their own minimum wage standards due to local ordinances. For instance, in Minneapolis, large employers’ minimum wage has increased to $15.57, with small businesses set to match this rate by July 2024. Similarly, St. Paul is implementing staggered increases, aiming for a $15 minimum wage for large businesses by July 2024 and small businesses by July 2025.
Prohibition on Salary History Queries
A significant step towards pay equity, a new law prohibits employers from inquiring about a candidate’s past salaries during the hiring process. This move aims to narrow the gender and racial pay gap, promoting a fairer and more inclusive workplace environment.
Employee Well-being: Earned Sick and Safe Time (ESST)
Starting January 1, 2024, Minnesota’s ESST law mandates that employers provide paid leave to employees who work in the state for reasons like illness, care for a sick family member, or circumstances involving domestic abuse, sexual assault, or stalking. Eligible employees, including temporary and part-time staff, will earn one hour of sick and safe time for every 30 hours worked, up to a maximum of 48 hours each year, unless the employer allows more.
Enhanced Workplace Safety Standards
January 1, 2024, also marks the implementation of new safety standards, particularly for industries like warehouse distribution centers, meatpacking, and healthcare. These standards aim to minimize musculoskeletal disorders and overall workplace injuries through mandatory safety training and honoring employees’ refusal to work under conditions deemed imminently dangerous.
Financial Adjustments and Environmental Responsibility
Transportation and Delivery
The new year introduces financial changes affecting both individual commuters and businesses. Tab fee increases and a gas tax indexed to inflation mean adjustments in transportation expenses. In addition, a new levy of 50 cents per delivery on retail deliveries over $100 will come into effect on July 1, 2024, impacting businesses involved in retail and delivery services.
Environmental and Social Responsibility
In 2024, the tangible impacts of Minnesota’s 2023 environment, energy, and climate budget bill begin to materialize for businesses. While the bill was passed in May 2023, the ensuing year is pivotal as businesses must align with its directives, such as transitioning towards clean energy and complying with stricter regulations on PFAS. Companies involved in the installation of solar panels, electric vehicle infrastructure, or clean energy projects may find new opportunities through incentives, rebates, and the Minnesota Climate Innovation Finance Authority. Conversely, sectors like utility providers may need to navigate the financial implications of these green initiatives. The bill’s comprehensive approach signals a transformative period, urging businesses to innovate, adapt, and consider their environmental footprint more conscientiously than ever before.
Compliance and Penalties
In October 2024, Minnesota OSHA fines and penalties will be indexed to inflation. This forthcoming change emphasizes the importance of workplace compliance, urging businesses to prioritize the safety and well-being of their employees.
Future Provisions to Keep in Mind
As you navigate these current changes, also be mindful of upcoming regulations, such as the Minnesota Secure Choice Plan – a retirement savings program set for 2025, and the Paid Family and Medical Leave mandate, effective from January 1, 2026.
Partnering with Prudent Accountants for Seamless Transition
Understanding and implementing these new regulations can be complex. That’s where Prudent Accountants steps in. Our team of experts is well-versed in the latest laws and dedicated to ensuring your business not only complies with these regulations but also thrives amidst these changes.
Whether you need assistance in adjusting pay structures, understanding ESST requirements, or strategizing for future regulations, Prudent Accountants is your trusted partner. We offer a range of services tailored to your unique needs, ensuring your business remains ahead of the curve.
Embark on this journey with assurance. Contact Prudent Accountants today and let us transform these legislative shifts into pathways for your business’s growth and success.
