Legislative Information for Business Owners
Federal
BOI Reporting Requirements Update (January 2026)
The U.S. Department of the Treasury and FinCEN have revised the scope and enforcement of Beneficial Ownership Information (BOI) reporting under the Corporate Transparency Act. Treasury has stated it will not enforce penalties or fines related to BOI reporting for U.S. citizens or domestic reporting companies. An interim final rule issued in March 2025 exempts entities formed in the United States and their beneficial owners from BOI filing requirements, limiting the rule’s application to certain foreign reporting companies. As of early 2026, domestic entities are not required to file BOI reports while Treasury continues the rulemaking process.
State
About Paid Family and Medical Leave
Effective January 1, 2026 in Minnesota, paid time off is now provided 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
4) certain personal safety issues (for oneself or one’s family member)
5) supporting a family member called to active duty
Family Leave applies to situations in which one must care for a family member with a serious health condition, or when one is caring for a new baby/child in the family.
Medical Leave applies when one’s own health prevents them from working.
Employers provide funding for this program via payroll deductions, keeping their employees informed, coordinating benefits, and supporting returning employees.
FREQUENTLY ASKED QUESTIONS FOR EMPLOYERS
SLIDEDECK FROM BLAINE AREA PAID FAMILY AND MEDICAL LEAVE SEMINAR (APRIL 2025)
ALL employers MUST have done the following per the State of Minnesota by December 1 - if you have not done the below yet, DO IT ASAP!
1. Hang a Workplace Poster on the program.
2. Notify employees about the program and DOCUMENT that you have done so. A sample notification from DEED can be found HERE.
3. Decide how to split payroll taxes.
4. Set up a notification process and inform employees of that process, including who on your team is the designated Paid Leave Administrator.
5. Decide whether to allow supplemental payments (i.e., allow other benefits such as vacation and sick time to make up the difference in their pay while on paid leave).
For more details, visit https://pl.mn.gov/employers/roles-and-responsibilities
WEBINAR: Ensure Your Business is in Compliance with PFML
The start of the year is a great time to review your records and ensure compliance.
Required records include:
- Employee name, address, and occupation
- Hours worked each day and week
- Pay rates
- Personnel policies provided to employees
- Wage notices and earnings statements
Best practices:
- Keep records accessible for at least three years
- Use consistent timekeeping systems
- Update records promptly when changes occur
- Train supervisors on accurate time tracking
Records may be kept electronically as long as they are easily accessible to the Minnesota Department of Labor & Industry upon request.
Learn more:
- Watch the recordkeeping video (English, Hmong, Somali and Spanish)
- View Minnesota's labor standards recordkeeping laws.
Effective January 1, 2026, Minnesota’s minimum-wage rate to be adjusted for inflation to $11.41 an hour for all employers in the state. The 90-day training wage for workers under age 20 will increase to $9.31. These rates reflect a 2.5% increase. The cities of Minneapolis and St. Paul have minimum-wage ordinances that require higher minimum-wage rates for work performed in Minneapolis and St. Paul. Minnesota law requires employers to display state-mandated posters in a location where employees can easily see them. As part of Minnesota’s employee notice requirement, employers are required to provide each employee with a written notice of any change before the change takes effect, including a change to the employee’s rate of pay. Visit dli.mn.gov/posters.
Effective Jan. 1, 2024, Minnesota’s Earned Sick and Safe Time law requires employers to provide paid leave to employees who work in the state. This means that as a business owner, you need to start preparing now to ensure that you comply with the new law. Sick and safe time is paid leave that employers must provide to employees in Minnesota that can be used for certain reasons, including when an employee is sick, to care for a sick family member, or to seek assistance if an employee or their family member has experienced domestic abuse.
An employee is eligible for sick and safe time if they work at least 80 hours in a year for an employer in MN; and are not an independent contractor. Temporary and part-time employees are eligible for sick and safe time. An employee earns one hour of sick and safe time for every 30 hours worked and can earn a maximum of 48 hours each year unless the employer agrees to a higher amount. Sick and safe time must be paid at the same hourly rate an employee earns when they are working.
To help get started, the DLI is providing resources on their website (we included links in our e-newsletter in early October). If you have specific questions, reach out to the Labor Standards Division of DLI at 651-284-5075 or dli.laborstandards@state.mn.us. As always, please let us know if we can help in any way.
Other Resources:
A Guide to Minnesota's Laws About Sick and Safe Time
Small Business Call Employers Paid Leave Question and Answers and Additional Information
Effective January 1, 2024, employers can no longer ask a candidate’s current or past pay history during the hiring process, with the intent to close the gender and racial pay gap. This law applies to employers of all sizes and types. Going forward, employers must rely on an applicant’s skills, education, certification, licenses, and other qualifications, as well as the job market, to set pay. Be sure your applicant materials are updated to make sure they do not ask for pay information.
Find additional information and resources on the Pay History Webpage.
As of January 1, 2024, Minnesota prohibits the sale and distribution of food and beverage packaging containing intentionally added PFAS (Minn. Stat. 325F.075). This requirement is now in effect.
This prohibition is separate from Amara's Law, passed in 2023, which phases out other avoidable PFAS uses in Minnesota by 2032.
Under Amara’s Law, intentionally added PFAS are prohibited in 11 product categories, based on definitions interpreted by the Minnesota Pollution Control Agency (MPCA). Examples include dental floss, upholstered furniture (including finishes and certain components), carpets and rugs, and artificial turf.
These product category prohibitions took effect in January 2025, are statutory (not rulemaking), and are not subject to “currently unavoidable use” determinations. Additional requirements for other products begin in 2032.
Other Resources
Recording of the PFAS in Food Packaging Webinar
Employers of 50 or more people are required to display posters explaining new legislation impacting the workplace. Click HERE below to see what posters are required and how to download them.
As of July 1, 2023, non-competition provisions are no longer enforceable against Minnesota employees or independent contractors in most situations. Minnesota’s law prohibits any covenant not to compete that is contained in a contract or agreement with an employee or independent contractor. READ MORE
Effective Aug 1, 2024, pregnant employees can take prenatal medical leave without it counting against their pregnancy/parental leave. They get the same health benefits during pregnancy/parental leave, and their employer will contribute as if they were working.
On May 24, 2023, Governor Tim Walz signed into law legislation that further expands protections for nursing and pregnant employees in Minnesota. The amendment, included in Senate File 3035, builds on the changes that became effective in January 2022 to Minnesota’s nursing mothers and pregnancy accommodations law (Minn. Stat. § 181.939). READ MORE
The CROWN 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." This will ensure that hair discrimination is legally included as a form of racial discrimination. READ MORE
The legislation creates the framework for adult-use cannabis in Minnesota and establishes a new Office of Cannabis Management, which will regulate cannabis (including for the adult-use market, the Medical Cannabis Program, and for lower-potency hemp edibles) and issue licenses and develop regulations outlining how and when businesses can participate in the industry. READ MORE
Effective 2024, the statute restricts “employer-sponsored meetings or communication” relating to religious or political matters. It defines “political matters” as those relating to political parties and community, fraternal, or labor organizations, among other things. READ MORE
The Department of Employment and Economic Development (DEED) Employer Reasonable Accommodation Fund (ERAF) creates a central fund where small to mid-sized Minnesota employers can request reimbursement for expenses related to providing reasonable accommodations for job applicants and employees with disabilities. READ MORE
Below is a video on the subject, recorded at our State of Business program:
As of January 1, 2025, Minnesota law bans “junk fees” and requires upfront price transparency. Any advertised or displayed price must include all mandatory, unavoidable fees, so customers see the true total cost before checkout. Hidden service, convenience, or processing fees can no longer be added later. Government taxes are excluded, and some exemptions apply, but most businesses should review pricing, menus, ads, and online listings to ensure compliance.
Effective 2025, 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. The new law is said to aim at reducing discrimination and wage gaps, while increasing transparency for potential job-seekers. READ MORE
Effective July 1, 2024, workers in MN can request to see their personnel/work records every 6 months and challenge information they disagree with. READ MORE
Effective Aug 1, 2024, MN employees must receive the full amount of tips paid by card or e-payment. READ MORE
Effective Aug 1, 2024, MN employers must save employee earnings statements/pay stubs for 3 years. This applies to current and past employees. READ MORE
County
The Anoka County Board of Commissioners approved a 9.4 percent levy increase at the board’s regular meeting Dec. 2. The final levy amount was lowered from the preliminary levy figure of 9.9 percent.
For the median-valued home in Anoka County ($338,00), this represents an annual increase of $84.
The amount reflects a multi-year approach by the county to bring deficit spending under control, with the goal being to have the levy at about a 5 to 6 percent increase annually by 2029.
The Anoka County Board of Commissioners elected Commissioner Scott Schulte to serve as chair of the board for 2026 and Commissioner Mandy Meisner to serve as vice chair at the board’s Jan. 6 organizational meeting. READ MORE
Anoka County offers a low-interest rate for job creation and growth-stage businesses (not a good fit for startup businesses or solopreneurs). Effective 2024, the rate has now dropped to 4%. READ MORE