ESST Compliance 2025: What Minnesota Employers Need to Know

Minnesota's Earned Sick and Safe Time (ESST) statute continues to evolve, and employers must stay aligned with the latest 2025 updates to avoid fines, confusion, and compliance gaps. This guide summarizes key changes, eligibility requirements, accrual and carryover rules, and outlines how automated tracking tools can help HR leaders maintain full ESST compliance across all locations.

To see how automated workforce systems track ESST and related leave policies, schedule a 20-minute demo with our compliance team.

What is ESST?

Earned Sick and Safe Time (ESST) is Minnesota's statewide paid sick leave mandate requiring employers to provide eligible workers with compensated time off for health, family, and safety-related needs. ESST ensures that employees can care for themselves or loved ones, attend medical appointments, recover from illness, or seek safety from domestic violence without risking income or job security.

While ESST has been in effect since 2024, the 2025 updates clarify coverage for multi-jurisdictional employers, extend eligibility to remote workers with Minnesota-based work, and refine recordkeeping obligations.

2025 ESST Updates: Key Changes Employers Must Implement

• •Expanded employee eligibility: Remote or hybrid workers who perform work in Minnesota for at least 80 hours per year now qualify for ESST accrual.
• •Updated accrual rates: Employees continue to earn one hour of ESST for every 30 hours worked, but new language clarifies how partial-hour calculations should be rounded.
• •Carryover and frontloading: Employers may frontload 48 hours annually, but the 2025 update requires written disclosure of frontload calculations and carryover balances.
• •Recordkeeping obligations: Employers must retain ESST records for at least three years and display balances on every pay stub or digital equivalent.
• •Expanded "safe time" protections: The statute now explicitly covers time off related to stalking, sexual assault, and certain relocation activities.

Failure to implement these updates can lead to civil penalties, employee claims, and reputational risk. For a full statutory breakdown, refer to the Minnesota Department of Labor and Industry (DLI) ESST compliance page or seek legal counsel specializing in labor law.

Who Qualifies for ESST?

Any employee working at least 80 hours per year in Minnesota qualifies, regardless of employer size, full-time status, or pay structure. This includes:

• •Part-time, temporary, and seasonal employees
• •Remote workers performing occasional Minnesota-based tasks
• •Employees of staffing agencies and franchises with Minnesota operations

Independent contractors remain excluded from ESST, though misclassification enforcement has increased statewide.

Permitted Uses of ESST

Employees can use ESST for:

• •Personal or family illness, injury, or preventive care
• •Medical appointments or recovery from treatment
• •School closures or care responsibilities for dependents
• •Domestic violence, sexual assault, or stalking-related safety needs
• •Relocation or legal processes tied to safety concerns

These categories closely mirror federal FMLA and local paid leave policies, emphasizing consistent documentation and confidentiality standards.

ESST Accrual, Carryover, and Payout Rules

• •Accrual rate: 1 hour per 30 hours worked, up to 48 hours per benefit year unless frontloaded.
• •Carryover: Unused ESST carries over annually up to 80 hours unless frontloaded and replenished at the start of each year.
• •Payout: ESST is not required to be paid out upon termination unless employer policy states otherwise.

Automated accrual tracking helps prevent under- or over-crediting hours and simplifies reporting during audits or employee disputes. For more on leave workflow design, visit our Leave Management Guide.

Documentation and Recordkeeping Compliance

Employers may require documentation for absences exceeding three consecutive days. Acceptable forms include healthcare provider notes or self-attestation when appropriate. Importantly, medical details cannot be disclosed or stored in personnel files under privacy laws.

Employers must maintain ESST records for at least three years and provide employees with their available balances on each pay statement or through an accessible online portal. For privacy alignment, ensure these systems comply with your company's privacy policy and terms of service.

How Automation Simplifies ESST Compliance

Managing compliance across shifting state laws can overwhelm HR teams—especially when juggling multiple pay groups or scheduling systems. Workforce management software can:

• •Automatically track ESST accruals and carryovers by employee type and location
• •Display balances in employee self-service dashboards
• •Flag policy violations in real time (e.g., unrecorded frontloads or expired documentation)
• •Generate DLI-compliant audit reports on demand
• •Integrate ESST with broader patient coverage and compliance workflows

Integrated automation ensures Minnesota employers maintain transparent, consistent, and legally sound ESST processes while reducing administrative burden.

Common Mistakes Minnesota Employers Should Avoid

• •Failing to include ESST policies in employee handbooks
• •Applying ESST inconsistently across remote and on-site workers
• •Not posting required ESST employee notices in physical or digital workplaces
• •Combining ESST with vacation or PTO banks without proper disclosure
• •Neglecting documentation security or data retention rules

Each of these errors increases legal exposure under Minnesota's DLI enforcement program. Schedule a compliance review before your next benefit year to confirm alignment.

Metrics to Track for Proactive Compliance

FAQ: Quick Answers About Minnesota ESST

Next Steps for Minnesota Employers

Review and update your policies now—before the next compliance cycle. Communicate clearly with employees, adjust accrual settings, and verify that payroll and scheduling systems reflect the 2025 ESST requirements.

To see how Productivity Pilot simplifies ESST tracking, leave management, and compliance reporting, schedule a 20-minute demo today.