A Guide To STARTING A BUSINESS IN MINNESOTA 42nd Ed 2024

FURTHER INFORMATION Additional information on workers’ compensation may be obtained by calling the Workers’ Compensation Division at the address and telephone numbers provided in the Resource Directory section of this Guide. The Division also produces a primer about HIPPA (privacy of health information) and workers’ compensation which will be helpful to employers.

EMPLOYEE BENEFITS

Employers commonly provide some form of health care, life insurance and retirement benefits for their employees. Although employers are not required to provide these plans, if the plans are provided they must comply with federal and state laws. PAID FAMILY AND MEDICAL LEAVE A new 2023 Minnesota law provides for paid family and medical leave for all employees beginning in January 2026 . The new law is available for the use of an employee who is unable to work because of their own health condition or who will use the time to care for a family member or new child or who needs the time because of certain military related events or personal safety events. Starting in January 2026, employers will remit to the state 0.7 percent of an employee’s taxable wages as a premium with the employer permitted to charge 0.35 percent of that amount to the employee through a wage deduction. Although collection of premiums will not begin until January 1, 2026, employers will be required to provide in mid-2024 a wage detail report showing the quarterly wages paid and hours worked for each employee. FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT At the federal level, the Employee Retirement Income Security Act (ERISA), 29 United States Code §§ 1001-1461, governs pension plans and medical, surgical, sickness, disability and death benefit plans sponsored by employers who are engaged in interstate commerce or in other activities affecting interstate commerce. ERISA establishes standards governing information to be provided participants, eligibility for participation, benefit rights and benefit accrual, vesting, employer and employee contributions, payment of benefits, plan termination and mergers, and survivor benefits. Federal agencies charged with enforcing ERISA include the U.S. Department of Labor, the Treasury Department, the Internal Revenue Service, and the Pension Benefit Guaranty Fund. Information on ERISA may be obtained from the U.S. Department of Labor’s Employee Benefits Security Administration at the contact information provided in the Resource Directory section of this Guide.

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