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This guide provides an overview of recent legislative changes and other vital information to help your business comply and thrive in Minnesota.

I. Major New Laws Effective July 1, 2025

Several significant laws are taking effect on July 1, 2025, impacting various aspects of business operations:

  • Commerce & Consumer Protection
  • Free Water at Large Events: Event venues with 100 or more attendees are now required to provide access to free water and allow attendees to bring factory-sealed or empty water bottles to access potable water. Limits can be placed on the types and sizes of allowable bottles. This does not apply to exhibit, gallery, or presentation spaces where beverages are prohibited if water is available outside the space.
  • HOA Ombudsperson Created: A new common interest community ombudsperson position will be established within the Department of Commerce. This role aims to help unit owners, tenants, and associations understand their rights and facilitate dispute resolution.
  • Financial Institution Account Closures: Financial institutions will be permitted to give notice and close a deposit account if the account holder has harassed the financial institution’s staff or customers.
  • Employment & Labor
  • Protections for Minors in Online Media: New regulations are in place for minor children appearing on internet platforms that generate compensation. If a minor’s likeness, name, or photograph is included in at least 30% of a content creator’s compensated video content within a 30-day period, a trust account and payment for the content created using the minor’s likeness will be required. The trust must be maintained until the minor reaches age 18. Records must be kept, and minors may request content with their likeness be deleted any time after they turn 13. Children under 14 are prohibited from working in content creation in a way that causes them to appear in more than 30% of videos, but if they do appear, they are entitled to 100% of the profits. Minors aged 14 to 18 can produce their own content and are entitled to the profits.
  • Sick-Leave Documentation Change: Employers may now request documentation, such as a doctor’s note, for employees taking two or more days of earned sick and safe time off, instead of after three days.
  • Office of Public Service Established: An Office of Public Service will be created to promote, expand, create, and strengthen career pathways aligned with public service opportunities.
  • Education
  • Summer Unemployment Insurance Boost: A one-time $100 million appropriation in fiscal year 2026 will reimburse school districts for the summer unemployment insurance program, which provides benefits to hourly school employees over the summer.
  • New School Year Flexibility: For the 2026-27 and 2027-28 school years, districts can begin the school year on or after September 1, due to Labor Day falling late in those years.
  • Grow Your Own Teacher Programs: The K-12 education law provides an additional $22.96 million to “develop, continue or expand Grow Your Own new teacher programs to develop a teaching workforce that more closely reflects the state’s increasingly diverse student population and ensure all students have equitable access to effective and diverse teachers”.
  • Transportation
  • Motorcycle Lane-Splitting and Filtering: Motorcyclists will be allowed to lane split and lane filter under specific conditions. Lane splitting is permitted when traffic is moving, at no more than 25 mph and no more than 15 mph over the traffic speed in relevant lanes. Lane filtering is allowed when traffic is not moving, such as at a traffic light or jam, at no more than 15 mph over the speed of traffic in relevant lanes. Drivers cannot intentionally impede or prevent motorcycle filtering.
  • Boater Permit Requirement: An expansion of the current boater operator law takes effect, gradually applying to boaters 21 and younger first, and then older age groups by 2028. A watercraft operator’s permit is issued to persons 12 years of age or older who successfully complete a water safety course and written test. Motorboat rental businesses are prohibited from renting to individuals under 18 or those without a valid permit/exemption.
  • Permanent Medical Exceptions for Window Tinting: Medical exceptions to vehicle window tinting restrictions, previously expiring after two years, will now not have an expiration date if a doctor determines the driver’s condition is permanent.
  • Environment & Natural Resources
  • Year-Round Bass Fishing: The open season for taking largemouth and smallmouth bass is now year-round.
  • PFAS in Consumer Products (Relaxed Regulations): Regulations prohibiting intentionally added PFAS in consumer products are relaxed. Exemptions include internal components of products, certain children’s recreational vehicles (ATVs, snowmobiles, electric-assisted bicycles) and their replacement parts, and a temporary exemption for PFAS-containing firefighting foam in fixed airport hangar systems.
  • Legacy Funds Appropriation: Nearly $777 million from legacy funds will be appropriated for various initiatives, including protecting drinking water, enhancing wetlands, prairies, forests, and wildlife habitat, preserving arts and cultural heritage, supporting parks and trails, and restoring lakes, rivers, streams, and groundwater.
  • Health and Human Services
  • Pediatrician Duty Added: Pediatricians will now have to inform parents about the signs of abuse in infants and how to report suspected physical abuse.
  • African American Child and Family Well-Being Advisory Council: An African American Child and Family Well-Being Advisory Council will be established in the Department of Children, Youth, and Families.
  • Dementia Service Program: A dementia service program is established to coordinate policies and programs, share data, and incorporate detection and risk-reduction strategies into Health Department programs.
  • Sensitive Exams Consent: Except in certain circumstances, prior consent must be given before physicians or students perform sensitive exams, such as pelvic or prostate exams.
  • Certified Midwife Licensure: A new certified midwife licensure process will be established for those with a graduate-level degree in midwifery.
  • State Government
  • State Symbols Added: Castoroides ohioensis, commonly known as the giant beaver, or capa in Dakota and amik in Ojibwe, is established as the state fossil. Ursa Minor is designated as the state constellation.
  • Fraud Prevention & Whistleblower Expansion: Agencies are permitted to withhold payments to a program participant for up to 60 days if there is a preponderance of evidence that fraud has been committed. Whistleblower protections for state employees are expanded, and state agency staff with grant management responsibilities must complete initial and annual continuing training. The list of officers who must notify the legislative auditor’s office about unlawful use of public money is expanded. Government entities can now disclose data related to suspected or confirmed fraud in public programs to other government entities, federal agencies, or law enforcement agencies, unless specifically prohibited by law.

II. Other Important Laws & Information

  • Paid Leave Equivalent Plans (Effective January 1, 2026): Minnesota will provide paid time off when an employee is unable to work due to: 1) a serious health condition; 2) needing time to care for a family member or a new child; 3) certain military-related events; 14) certain personal safety issues (for oneself or one’s family member); or 5) supporting a family member called to active duty. Employers can choose to meet these responsibilities with an equivalent plan through an insurance carrier or by self-insuring. New resources, including a surety bond template and a self-insured plan guide, are available.
  • Family Leave applies to situations where one must care for a family member with a serious health condition, or when caring for a new baby/child.
  • Medical Leave applies when one’s own health prevents them from working.
  • Employers fund this program via payroll deductions, keep employees informed, coordinate benefits, and support returning employees.
  • Learn More:
  • Earned Sick and Safe Time Law (Effective January 1, 2024): Employers must provide paid leave to employees working in Minnesota. This includes time for personal illness, caring for a sick family member, or seeking assistance for domestic abuse.
  • Eligibility: Employees who work at least 80 hours in a year for a Minnesota employer and are not independent contractors are eligible. This includes temporary and part-time employees.
  • Accrual: Employees earn one hour of sick and safe time for every 30 hours worked, up to a maximum of 48 hours per year, unless the employer agrees to a higher amount.
  • Payment: Must be paid at the employee’s regular hourly rate.
  • Resources: For specific questions, contact the Labor Standards Division of DLI at 651-284-5075 or dli.laborstandards@state.mn.us.
  • Other Resources:
  • Pay History Ban (Effective January 1, 2024): Employers are prohibited from asking about a candidate’s current or past pay history during the hiring process. This aims to close gender and racial pay gaps. Employers must now rely on an applicant’s skills, education, certifications, licenses, qualifications, and the job market to set pay. Ensure applicant materials are updated.
  • PFAS in Food Packaging Prohibition (Effective January 1, 2024): The sale and distribution of food and beverage packaging containing intentionally added PFAS chemicals are prohibited in Minnesota. This is separate from Amara’s Law, which phases out other avoidable PFAS uses by 2032.
  • 2025 PFAS Prohibitions: Intentionally added PFAS will be prohibited in products from 11 categories under Amara’s Law, effective January 2025. Examples include dental floss, water/stain repellent finishes on upholstered furniture (including electronic components like massage chairs), and artificial turf within the carpets and rugs category. These prohibitions are not subject to “currently unavoidable use” determinations.
  • Resources:
  • Workplace Poster Requirements (Effective January 1, 2024): Employers with 50 or more people are required to display posters explaining new legislation impacting the workplace.
  • Minimum Wage Adjustment (Effective January 1, 2025): Minnesota’s minimum wage rates will be adjusted for inflation to $11.13 an hour for all employers, including large employers, small employers, youth, and J-1 visa wages for hotels, motels, and lodging establishments. The 90-day training wage for workers under age 20 will increase to $9.08 per hour.
  • Note: State minimum-wage rates do not apply to work performed in Minneapolis and St. Paul, which have higher minimum-wage rates.
  • Non-Competition Provisions (Effective July 1, 2023): Non-competition provisions are generally no longer enforceable against Minnesota employees or independent contractors in most situations. The law prohibits any covenant not to compete contained in a contract or agreement.
  • Protections for Pregnant and Nursing Employees (Effective August 1, 2024): Pregnant employees can now take prenatal medical leave without it counting against their pregnancy/parental leave. They will receive the same health benefits during pregnancy/parental leave, and employers will contribute as if they were working. This builds on changes effective January 2022 to Minnesota’s nursing mothers and pregnancy accommodations law.
  • CROWN Act (Effective July 1, 2023): This act adds a definition of race to the Minnesota Human Rights Act to explicitly protect natural hair styles and textures, including but not limited to “braids, locks, and twists,” ensuring hair discrimination is legally included as a form of racial discrimination.
  • Cannabis Legalization (Effective August 1, 2023): Legislation created the framework for adult-use cannabis in Minnesota and established a new Office of Cannabis Management. This office will regulate all cannabis forms (adult-use, medical, lower-potency hemp edibles), issue licenses, and develop regulations for business participation in the industry.
  • Cannabis Tax Hike (Effective July 1, 2025): The tax on cannabis (and related products) increases from 10% to 15%.
  • Employer-Sponsored Meeting Restrictions (Effective July 1, 2023): The statute restricts “employer-sponsored meetings or communication” relating to religious or political matters. “Political matters” are defined as those relating to political parties and community, fraternal, or labor organizations, among other things.
  • Employer Reasonable Accommodation Fund (ERAF) (Effective July 1, 2023): DEED’s ERAF creates a central fund for small to mid-sized Minnesota employers to request reimbursement for expenses related to providing reasonable accommodations for job applicants and employees with disabilities.
  • Junk Fees Law (Effective January 1, 2024): This law prevents businesses from adding certain charges at the end of a transaction. For restaurants, an automatic gratuity must be clearly labeled and go to the wait staff. Taxes, shipping, and delivery charges are still permitted.
  • Pay Transparency in Job Postings (Effective January 1, 2024): Minnesota employers are required to disclose a starting salary range (or fixed pay rate) and a general description of all benefits for each job posting they create. This aims to reduce discrimination and wage gaps while increasing transparency for job-seekers.
  • Employee Personnel Records Access (Effective July 1, 2024): Workers in Minnesota can request to see their personnel/work records every six months and challenge information they disagree with.
  • Full Tips for Employees (Effective August 1, 2024): Employees must receive the full amount of tips paid by card or e-payment.
  • Employee Earnings Statement Retention (Effective August 1, 2024): Minnesota employers must save employee earnings statements/pay stubs for three years for current and past employees.

III. Additional Resources

  • Minnesota House of Representatives Public Information Services: Summaries of laws passed by the 2025 legislative session are available online.
  • Minnesota Department of Labor and Industry (DLI): A primary resource for workplace laws, including minimum wage, sick and safe time, and pay history.
  • Labor Standards Division: 651-284-5075 or dli.laborstandards@state.mn.us
  • Minnesota Department of Employment and Economic Development (DEED): Offers information on paid leave and other employer resources.
  • Minnesota Pollution Control Agency (MPCA): Provides information on PFAS regulations.
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