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Tale of Twin Cities’ dueling policies on paid leave

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in Compensation and Benefits,Human Resources

Less than four months after adopting a paid leave policy, Minneapolis has amended it to conform more closely with St. Paul’s paid leave statute.

The biggest change concerns providing employees with a lump sum of leave once the employee has been on the job for 90 days, a process called front-loading. Under the revised Minneapolis ordinance, employers that choose to front-load must provide workers with 48 hours of paid sick leave after 90 days on the job and 80 hours of leave at the beginning of each subsequent year. For employers that don’t front-load, leave is capped at 48 hours per year and may not accrue to more than 80 hours.

Employees receive their “regular rate of pay” while on leave. That excludes tips, commissions, bonuses, profit-sharing payments and other kinds of variable pay. Some retirement plans may have provisions that supersede the ordinance.

Employers with operations in both Minneapolis and St. Paul should confer with an attorney to understand conflicts between the two cities’ laws.

For both cities, the ordinances take effect July 1, 2017. Neither city has published final regulations or frequently asked questions about their paid sick leave programs.

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