Minnesota Employer Checklist
We’ve got you covered on the payroll end. Please read carefully the following resources and information to help keep you in compliance with other MN laws.
MN employers are required to maintain workers’ compensation insurance coverage for part-time or full-time employees. Workers’ compensation insurance is not a tax, and it covers on-the-job injuries and illness. This insurance is typically excluded from homeowner’s or umbrella insurance. The penalty/fine can be up to $1,000 per employee, each week during the time the employee was not insured. Please contact a state-licensed insurance broker. If you have questions about the need to obtain workers’ compensation coverage, contact an attorney, call DLI at 651-284-5032 or visit www.dli.mn.gov.
Federal law requires that all employers request this form to be completed by the prospective employee. Don’t submit it to anyone, just keep it with your employer records in case of an audit.
I-9 form: https://www.uscis.gov/i-9
W-4 form: https://www.irs.gov/pub/irs-pdf/fw4.pdf
To be sure your employee doesn’t get an unexpected tax bill, or have too much withheld, have them complete a W-4 form when they are hired, or anytime they experience a change in their withholding requirements (marriage, birth of child, additional income, etc.). You can update your employee’s profile in the Nest Payroll app at anytime during the year.
Required: MN Wage Notice Form
All MN employers are required to provide this notice to their employee at the time of hiring. You can fill it out online, print two copies (one for each of you) and each sign both copies. Your signed copy should be retained with your employer records in case there is ever a wage dispute.
MN law requires all employers provide the following applicable notices to their employees:
Having an agreement reduces awkwardness and misunderstandings, especially as things come up you just didn’t anticipate. If you don’t have an agreement with your employee, you can download this one and modify for your situation. This one is for a nanny, but you can easily change out the role of the employee, such as for a housekeeper or caregiver, making it work for you.
Additionally, Hand In Hand, a non-profit we love that supports domestic employers + employees, is a great resource for tackling all sorts of challenges that come with household employment, creating a more dignified and respectful workplace for all. Please consider taking their Fair Care Pledge, plus take advantage of their excellent and free sample contracts and guide books.
PAID SICK AND SAFE TIME: REQUIRED BY LAW
An employee earns one hour of sick and safe time for every 30 hours worked, up to at least 48 hours a year. This time can be offered upfront, or can be accrued at a rate of 1 hour for every 30 hours worked. Allowance for sick time can be entered when you add your employee. When sick time is used, simply enter the hours in the Nest Payroll app when creating a paycheck.
Details: MN Sick and Safe Time
VACATION TIME or PAID TIME OFF: NOT REQUIRED
Paid vacation time is not required, but it could be an important benefit to offer. If you do, you must follow certain guidelines. Vacation/PTO hours can be entered in the Nest Payroll app when creating a paycheck.
MINIMUM WAGE: REQUIRED BY LAW
All household employees are classified as hourly (non-exempt) and are subject to minimum wage protections. To check if your city, especially St. Paul or Minneapolis, has a higher minimum wage requirement than the state, click on the following:
MN Dept. of Labor and Industry- Minimum Wage
The Economic Policy Institute - Minimum Wage Tracker
OVERTIME: REQUIRED BY LAW
Overtime of 1.5x the hourly rate for any hours worked in excess of 48 hours in a seven-day period, based on the Minnesota Fair Labor Standards Act.
Details: MN Overtime Law Guide
You are not required to give your employee a termination letter. Read further for specific guidelines:
Minnesota Termination Guidelines
The information provided on this page is general in nature. This is not to be taken as tax, legal, benefits, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult an attorney or financial advisor for your specific situation.