Purpose

• To modify how the Paid Leave law defines who is a seasonal employee in Minnesota, specifically for workers in the hospitality industry, and to adjust how seasonal status affects eligibility for paid leave benefits and protections.

Main Provisions

• Definition of Seasonal Employee (Section 1)

  • A seasonal employee is someone who is employed for no more than 150 to 180 days during any consecutive 52-week period.
  • The work must be in the hospitality sector.
  • The employer must have average receipts in any six months of the preceding calendar year that are not more than 33 percent of the other six months’ average receipts.
  • To be classified as seasonal, the employee and employer must:
  • Use a format prescribed by the commissioner to apply to the department and certify that the employee meets the 150–180 day limit.
  • Ensure the employee’s primary line of work is hospitality.
  • The employer must meet the receipts threshold.
  • The employer must provide the required employee notice under the specified section.
  • The employer must notify the department within five business days if a previously classified seasonal employee no longer meets the criteria and is no longer seasonal.

• Benefits and Eligibility (Section 2)

  • An applicant is not eligible to receive paid leave benefits or take protected leave for any week the applicant is a seasonal employee as defined above.
  • If a person who is denied benefits under this provision remains employed for more than 150–180 days, that person’s benefits eligibility starts only after the 150–180 day period ends (i.e., beginning the Sunday following the completion of the period).

Changes to Existing Law

• Amends Minnesota Statutes 2024, sections 268B.01 and 268B.06.
  • Clarifies and tightens the criteria for classifying someone as a seasonal employee in the hospitality sector.
  • Ties seasonal status to a precise employment duration window (150–180 days) and a receipts-based threshold.
  • Adds a department-notification requirement when an employee’s seasonal status changes.
  • Alters when seasonal workers can access paid leave benefits if they are currently classified as seasonal.

Administrative and Practical Implications

• Administrative burden on employers to track and certify seasonal status and file notices with the department.
• Potential reduction in paid leave eligibility for workers during the defined seasonal period.
• Clear linkage between business receipts, season length, and eligibility, which could affect hiring and scheduling in hospitality settings.

Potential Impacts to Consider

• For hospitality employers, this could influence staffing models and hiring longer-term or shorter-term workers depending on seasonal classification.
• Seasonal workers may experience delayed access to paid leave benefits, or loss of benefits during the active seasonal period.
• The requirement to notify the department about status changes creates ongoing compliance responsibilities for employers.

Relevant Terms - seasonal employee - Minnesota Paid Leave Law - hospitality - 150 days - 180 days - 52-week period - average receipts - six months - calendar year - receipts threshold - department - notice - protected leave - benefits - Sunday following - Minn. Stat. 268B.01 - Minn. Stat. 268B.06