Last Friday, the Minneapolis City Council passed a new ordinance requiring employers who employ six (6) or more employees to provide a maximum of forty-eight (48) hours of paid sick and safe time. Under the ordinance, employees accrue a minimum of one hour of sick and safe time for every thirty (30) hours worked. Additionally, employers must permit an employee to carry-over up to eighty (80) hours of accrued but unused sick and safe time to the following calendar year. Employers with less than six (6) employees are required to provide unpaid sick and safe time.
This ordinance not only affects Minneapolis businesses, but also any business who has employees working within the geographic boundaries of the City for at least eight (80) hours in a calendar year. For example, my husband works for a large engineering firm in St. Paul, which routinely has projects in Minneapolis, including the new Vikings Stadium currently under construction. According to the new ordinance temporary employees who work with my husband, and are assigned to work on projects in Minneapolis for more than 80 hours will accrue paid sick/safe leave, even though the other temporary employees who do not work in Minneapolis will not accrue paid leave. This sounds like an administrative headache to track and document. Additionally, it results in employees not being treated equally.
The ordinance also states that employers who provide an employee handbook to its employees must include in the handbook notices of an employee’s rights and remedies under the ordinance. If your company is located in Minneapolis or does significant work in Minneapolis, you may need to update your employee handbook.
It is too soon to know the impact this ordinance will have on businesses in Minneapolis or companies who routinely do business in Minneapolis. The ordinance is scheduled to go into effect July 1, 2017. Violations during the twelve months following the effective date will be mediated, and employers issued warnings or notices to correct any problems. After July 1, 2018, monetary penalties and other relief may be imposed for violations.
I agree providing paid time off for sick employees is an important workplace benefit. However, this is not something that should be dictated by City government. Businesses should be free to determine employee benefits in line with their business model and the market. The new ordinance smells like an anti-business move by a local City government. Paid time off is something Unions typically work to negotiate for their membership. Isn’t that what union organizing is all about?