06/30/2017

Important Information for St Paul/Minneapolis Businesses

Dear Clients:

I am sure you have heard in the news of the Minneapolis and St Paul Earned Sick and Safe time ordinance that have recently been adopted by these cities. It looks like these will go into effect on July 1, 2017. Attached are documents about this leave time. Here are some of the highlights. They are pretty much the same except for who it applied to:

1) It basically provides one hour of leave time for every 30 worked each year. So for employees working 30 hours a week all year long, it would provide for a maximum of 48 hours each year. This can be accumulated each pay period or the beginning of the year.

2) A maximum of 80 hours can be carried over into future years.

3) If you already have a paid time off policy that is better then this, you do not need to add to that.

4) You must keep records of the time accumulated and used.

5) You cannot prevent employees from using this time.

6) You can establish a policy that requires use of no less than 4 hours at a time for ESST.

7) Only time worked in the city of St Paul and Minneapolis counts towards this, so if you have employees that work in either city, only the hours worked in St Paul or Minneapolis apply.

8) You need to have at least 24 workers in the City of St Paul to be subject to this ordinance July 1. Otherwise, you will be subject to it January 1, 2018. For Minneapolis it is 6 employees.

9) You can require working 90 days before being able to use the ESST, but they begin to accumulate these hours at the start of their employment.

There are all kinds of nuances to the ordinance that the attached will help explain. There are posters that are required to be posted for this also attached.

My opinion is this: I feel there will be further litigation and/or legislation on these ordinances. There is some provision for penalties, but they go into effect if leave time is denied an employee that is eligible. Restaurants would be particularly affected with this ordinance. There needs to be some method of tracking time that is worked in these cities, so if you have employees that work in Minneapolis and St Paul more than 30 hours in a year, you would be subject to this ordinance. Although we can set up a sick time item on the payroll checks, it may not apply to everyone so it might be easier to address this as it occurs if an employee requests ESST time off.

If you have further questions on the ordinances and how they affect your business, please contact either Carrie at ext 503 or Amanda at ext 501 at Quick Assist – 612-615-7795

Thanks!

qa-logo-q.jpg

Amanda G. Tukey

(612) 615-7795, ext. 501

5775 Wayzata Blvd.

Suite 700

Minneapolis, MN 55416

www.quickassist.biz

My trending post: Small Business Tax Deductions

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ESST Mailing to Businesses.pdf

ESST-Worplace Notice_English_Final.pdf

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David J Geslin CPA LTD

5775 Wayzata Boulevard, Suite 700 Minneapolis, MN 55416 cpa@davidgcpa.com