A Minnesota Court of Appeals has determined that the Minneapolis paid sick leave (PSL) ordinance, as amended in 2018, applies to certain employers located outside of the city because employees working in the city (1) only accrue leave during the hours they work in Minneapolis and (2) can be restricted to using PSL only on days they are scheduled to work in Minneapolis. The ordinance only applies to employees who work at least 80 hours annually within the city [Minnesota Chamber of Commerce v. City of Minneapolis, No. A18-0771 (Minn. App., 4-29-19)].
This court decision vacates (i.e., removes) the lower court’s permanent injunction that prevented the amended ordinance from applying to employers located outside of the city. The appellate court also found that the Minneapolis ordinance is not in conflict with or preempted by state laws related to parental, sick, and safe leave, rejecting arguments made by the Minnesota Chamber of Commerce and others.
Due to the court ruling, the city of Minneapolis is changing its administrative rules and frequently asked questions regarding the PSL ordinance. Comments on the proposed changes to the rules and FAQs can be submitted online through June 7. Employers based outside of Minneapolis will be subject to enforcement after the rule changes take effect [City of Minneapolis, News Release, 5-8-19].
Interested in more state and local payroll coverage? APA’s PayState Update eNewsletter is perfect for you.
