Overview of Hiring Laws in Minnesota

Minnesota employment laws reflect a progressive and worker-protective approach, particularly regarding minimum wage indexed to inflation, comprehensive anti-discrimination coverage, and strong employee protections. The state’s Minnesota Department of Labor and Industry (DOLI), Minnesota Department of Human Rights (MDHR), and the Equal Employment Opportunity Commission (EEOC) oversee most employment standards, including wage and hour rules, anti-discrimination protections, new hire reporting, and workplace safety.

One of the most notable aspects of Minnesota employment law is the Minnesota Human Rights Act (MHRA), which is widely recognized as “one of the strongest civil rights laws in the country.” Effective January 1, 2025, significant changes went into effect, including elimination of the reduced minimum wages applicable for small employers and youth under age 18, resulting in a single statewide minimum wage for all employers, and a uniform minimum wage rate for all employees.

These rules reflect Minnesota’s comprehensive approach to worker protection with some of the strongest employment standards in the nation.

Minnesota Hiring Laws

Anti-Discrimination and Equal Opportunity Laws

The Minnesota Human Rights Act (MHRA), codified in Minnesota Statutes Chapter 363A, prohibits discrimination in employment based on race, color, creed, religion, national origin, sex, marital status, disability, status with regard to public assistance, age (18 and older), sexual orientation, gender identity, and unfair human rights commission activity.

• Unique breadth of coverage: The MHRA applies to all employers in Minnesota, regardless of size—even sole proprietors with one employee. This is significantly broader than federal Title VII, which applies only to employers with 15+ employees. The Minnesota Human Rights Act covers all employers in Minnesota, even those with only one employee, and employees have one year to file a complaint with the MDHR, compared to the federal requirement of 300 days with the EEOC.
• Disability protections: The Minnesota Human Rights Act defines disability similarly to federal law, except that it qualifies the condition of disability to mean that it “materially” limits a person’s major life activity, instead of the Americans with Disabilities Act Amendments Act’s requirement that it “substantially” limits. That lower threshold could presumably allow some conditions that might not be considered disabilities under federal law to be covered under the state’s Act.
• Historical context: Minnesota enacted its first major human rights law in 1967, covering race, color, creed, religion, and national origin. Over the next 25 years legislators attempted to add sexual orientation protections; they succeeded in 1993, making Minnesota the eighth state to add sexual orientation protections.

Employers are required to provide reasonable accommodations for individuals with disabilities unless it causes undue hardship. Employers must also maintain written policies addressing non-discrimination and equal employment opportunity.

Pay Equity and Minimum Wage

Effective January 1, 2025, Minnesota’s minimum wage is $11.13 per hour for all employers in the state, representing a significant modernization that eliminated reduced minimum wages applicable for small employers and youth under age 18. The new hourly minimum wage represents a 2.6% increase from $10.85 for workers at large businesses and a nearly 26% increase from $8.85 for workers at small businesses.

• Annual inflation adjustments: During the 2024 legislative session, Minnesota’s minimum wage law was revised to adjust the minimum wage for inflation each January 1, beginning January 1, 2025. Effective January 1, 2026, Minnesota’s minimum-wage rate will be adjusted for inflation to $11.41 an hour for all employers in the state.
  For the most current minimum wage information, visit the Minnesota Department of Labor and Industry Minimum Wage Page.
• No tip credit: Minnesota does not allow employers to use a tip credit against the minimum wage. Minnesota does not allow a tip credit, and employees must be paid the state minimum of $11.13 per hour. All employees, regardless of tips received, must earn at least the full state minimum wage.
• Training wage: The law still allows for a 90-day training wage for workers under age 20, which increased to $9.08 as of January 1, 2025.
• Local minimum wages: The state minimum-wage rates do not apply to work performed in the cities of Minneapolis and St. Paul, which have higher minimum-wage rates. Minneapolis’s minimum wage is $15.97 as of 2025.
• Employee notice requirement: 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.

Minnesota follows federal equal pay requirements. Employers should retain records demonstrating the basis for any wage differences between employees of different sexes performing substantially equal work.

Background Checks and Criminal History Rules

Minnesota does not have a statewide ban-the-box law for private employers. Employers may inquire about an applicant’s criminal history at any point during the hiring process. However, expunged or sealed records require special handling—if an applicant’s criminal record has been expunged or sealed, the applicant may truthfully state that the conviction did not occur.

When using third-party background screening services, the Fair Credit Reporting Act (FCRA) applies. Employers must obtain written consent before running a background check and provide adverse action notices if denying employment.

I-9 and Employment Eligibility Requirements

Like all U.S. states, Minnesota employers are required to verify the identity and employment eligibility of new hires using Form I-9. Employers must complete Form I-9 within three business days of a new hire’s start date and retain forms for three years after hire or one year after termination, whichever is later.

State-Specific Hiring Rules

Minnesota enforces additional hiring-related requirements that employers should be aware of:

Penalties for Non-Compliance in Minnesota

Minnesota takes non-compliance seriously. Employers who fail to follow state and federal hiring laws can face significant financial and legal consequences.

• Wage and Hour Violations: Employers who violate minimum wage, overtime, and wage payment laws are subject to civil penalties enforced by the U.S. Department of Labor. Violations can result in back wages, liquidated damages (double the unpaid wages), and attorney fees.
• Discrimination Violations: If discrimination is found, remedies may include getting hired, back pay, or getting reasonable accommodations. Employers may also be required to pay attorney’s fees. The MDHR can order remedies including reinstatement with back pay, compensatory damages, front pay, and attorney fees.
• Filing timeline: To file your complaint with the MDHR, you have to do it within 365 days (or 12 months) of the date you were discriminated against. However, you should not wait until this timeframe is expiring.
• Employee Lawsuits: Employees can file complaints with the Minnesota Department of Human Rights or pursue civil lawsuits for discrimination or retaliation. You cannot file a lawsuit until after the EEOC or MDHR has investigated your complaint and given you a notice that is called “a right to sue” letter.
• FCRA Violations: Improper background check procedures can result in fines of $1,000+ per applicant, with significantly higher exposure in class-action lawsuits.
• Form I-9 Violations: USCIS fines can range from $281 to $2,789 per form for paperwork errors, and $678 to $27,894 per violation for knowingly hiring unauthorized workers (as of 2025).
• New Hire Reporting Non-Compliance: Employers can face fines of up to $25 per unreported employee in Minnesota, with potential penalties capping at $500 per month regardless of the number of violations.

Notice and Documentation HR Professionals Need to Know

HR professionals must maintain the following key documents to stay compliant:

• Completed Form I-9s for All New Hires- Federal law requires all employers to verify an employee’s identity and eligibility to work in the U.S. via Form I-9. These forms must be completed within three business days of hire and stored securely for the required retention period: either three years after the hire date or one year after termination, whichever is later. For additional guidance on I-9 compliance, consult the USCIS I-9 Handbook.
• New Hire Reporting to Minnesota Department of Human Services- All new hires and rehires must be reported to the Minnesota Department of Human Services (DHS) within 20 days of their hire date. Report new hires online through DHS’s website or by mail/fax. Reports should include the employee’s name, address, Social Security number, date of birth, date of hire, and the employer’s FEIN. Submit reports to the Minnesota New Hire Reporting Center.
• Background Check Documentation- Employers must retain written consent forms, background check reports, and copies of any adverse action notices provided to applicants. These records should be kept for at least one year and demonstrate compliance with FCRA requirements.
• Written Policies on Non-Discrimination and Equal Opportunity- Employers are required to display clear, written policies outlining their commitment to equal employment opportunity and non-discrimination. These policies should be included in employee handbooks and posted in visible areas of the workplace to ensure accessibility for all staff, as required by the Minnesota Human Rights Act.
• Retention of Job Applications and Interview Notes- Minnesota employers are advised to retain job applications, interview notes, and hiring records for a minimum of two years. This documentation can be critical if hiring decisions are later questioned or challenged in discrimination complaints.
• Wage and Hour Records- Employers must maintain accurate records of hours worked, wages paid, and deductions for each employee. The Minnesota Department of Labor and Industry requires these records to be kept for at least three years and made available during audits or investigations.
• Employee Notice of Wage Changes- 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.
• Posters and Workplace Notices- Certain notices must be displayed prominently in the workplace, including those covering minimum wage, discrimination, workers’ compensation, unemployment insurance, and employee rights. HR should routinely verify that all state and federal posters are up-to-date and clearly visible to employees. Posters are available through the Minnesota Department of Labor and Industry.