Employment laws in Minnesota can, in some circumstances, be more complex than the employment laws in other states or federal employment laws. Minnesota has its own more stringent versions of some federal acts as well as some additional employer obligations.

Is Minnesota an At-Will Employment State?

Yes. At-will employment means either the employee or the employer can terminate the employment arrangement at any time, without notice or cause, as long as the termination is legal. Illegal terminations in at-will employment states like Minnesota include:

• Termination due to an employee’s membership in a protected class as defined by Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA) and the Age Discrimination in Employment Act (ADEA)
• According to federal law, most protected characteristics include race, color, religion, sex, national origin, disability and age
• Minnesota adds additional protected characteristics in the Minnesota Human Rights Act, including marital status, familial status, public assistance status, sexual orientation and gender identity

Although recent interpretation of federal civil rights law includes sexual orientation and gender identity, Minnesota’s human rights law formally adds these characteristics to the protected list.

Retaliatory Termination

A number of federal laws, including the Occupational Safety and Health Act, the Fair Labor Standards Act and the Family and Medical Leave Act, prohibit retaliatory termination for protected activities. Minnesota’s human rights law specifically prohibits termination for:

• Participating in an investigation, proceeding or hearing under the Minnesota Human Rights Act
• Reporting illegal activities of their employers

Contract Violation Terminations

Some contracts may stipulate specific employee actions that will result in termination. Dismissing an employee when those defined conditions aren’t met may constitute a breach of contract, allowing the employee to pursue legal actions against their employer. This is covered under both federal and Minnesota law. This may extend to implied conditions that are found in employee handbooks or company policy, even if they are not explicitly stipulated in the employment contract.

Termination for Legally Protected Leave

Although the federal Family and Medical Leave Act (FMLA) does extend protection for a variety of family-related leave types, Minnesota does have its own laws pertaining to parental leave and sick leave beyond FMLA, such as the Pregnancy and Parenting Leave Act (PPLA).

Minnesota also has an additional Paid Leave Law that will go into effect on January 1, 2026. This will entitle employees to paid time off if they need to care for a family member, new child or for specific personal safety issues or military-related events/duties.

Meeting Final Paycheck Requirements

Minnesota does have strict requirements for issuing the final paycheck for terminated workers and those who quit. You can read more about it in one of our past blogs on the topic. Minnesota state law imposes different rules for terminated workers and workers who quit, granting employers more leeway if the employee terminated their own employment.

Minnesota Laws for Terminations and Layoffs

Large-scale layoffs, such as those that occur if an employer closes an entire facility, are governed by the Minnesota Worker Adjustment and Retraining Notification (WARN) Act. This law requires employers with more than 100 full-time employees to provide advance notice of closures to workers and relevant parties. Smaller employers are not bound by the law. You can learn more about the requirements here.

Hours and Wage Laws

Minnesota does have strict requirements for what does and does not constitute a full-time employee as well as statutes pertaining to break times. State statutes are based on workweek calculations (seven consecutive 24-hour periods). The statute only requires overtime pay – one and a half times the worker’s regular rate – if they work more than 48 hours within a single workweek. State laws also require sufficient meal breaks and bathroom breaks, as well as rules allowing nursing mothers to express milk without having their compensation reduced for the time.

Employee Handbooks and Policies

If you’re an employer in Minnesota, it’s often a good idea to develop and distribute a comprehensive employee handbook that outlines your workplace’s policies and procedures, including acknowledgement of legally required anti-discrimination and harassment policies, as well as procedures for filing formal complaints. Handbooks should also strictly define the various leave and break policies. Although many businesses offer more generous policies than those required by state or federal law, clearly defining the limitations is a good way to protect your business from legal action and prevent employee abuse of your policies.

Should You Consult With a Minnesota Business or Employment Lawyer on Your Company’s Policies?

Although there are many boilerplate employee handbooks available, standard policies and procedures don’t necessarily work for every type of business or workplace. Working with an employment or business law attorney can be helpful for many entrepreneurs, new business owners and long-time business owners who want to write or modify company policies.

If an employee (or past employee) does pursue legal action against your business, the referral counselors at the Minnesota Lawyer Referral and Information Service (MNLRIS) can help you find a local Minneapolis–St. Paul attorney who can assist. Our network includes more than 200 local private practice attorneys in a diverse array of focuses, including business and employment law. Call us at (612) 752-6699 to get started.