Break Room: Minnesota Labor News Roundup
Take a seat in the Break Room, your weekly digest of labor news from Minnesota and beyond. This week’s headlines include significant changes to state labor laws, a major national security decision impacting the steel industry, a settlement for a pregnant worker’s rights violation, a unionization push among nurses, and a new resource for navigating NLRB regulations.
Higher Minimum Wages
The Minnesota statewide minimum wage increased to $11.13 per hour on January 1, 2025. This affects virtually all workers due to a 2024 state law eliminating lower minimum wage thresholds for small businesses, workers under 18, and those on J-1 visas. The new rate represents a 2.6% increase from the previous $10.85 for large businesses and a substantial 26% increase from $8.85 for small businesses. A lower minimum wage of $9.08 remains for workers under 20 and those in training. Minnesota now joins 34 states and territories with minimum wages exceeding the stagnant federal rate of $7.25 (unchanged since 2009).
Twin Cities minimum wages also saw adjustments, roughly mirroring the statewide 2.6% inflation-adjusted increase. In Minneapolis, the minimum is now $15.97 per hour for all businesses. St. Paul’s minimum wage varies: $15.57 for large businesses, $14 for small businesses, and $12.25 for “micro” businesses (five employees or fewer).
Employers Must Post Salary Ranges
Companies in Minnesota with 30 or more employees are now required to disclose salary ranges for all job openings, alongside benefits and compensation details. Ranges cannot be “open-ended.” This initiative aims to empower job seekers with more transparent information for salary negotiations. Research from the Federal Reserve Bank of Minneapolis indicates that salary range disclosure is already increasing, even in the absence of widespread state mandates.
Nursing Home Worker Holiday Pay and Wage Increases
Nursing homes in Minnesota are mandated to pay workers time-and-a-half for 11 state holidays, including New Year’s Day, Juneteenth, and Labor Day. This is a result of new rules implemented by the state’s Nursing Home Workforce Standards Board, a tripartite body composed of workers, nursing home leaders, and lawmakers. The board also approved a phased increase in the minimum wage for nursing home workers, aiming for an average of $23.49 per hour by 2027 (pending state funding). The first increase is slated for next year. However, two industry groups have filed a lawsuit in federal court to challenge the holiday pay rules, with a hearing scheduled later this month.
Ride-Hail Insurance and Worker Protections
As of January 1, 2025, ride-hail companies like Uber and Lyft are required to provide insurance covering driver injuries up to $1 million, including coverage for the period immediately after a trip concludes. Minimum pay rates and stronger protections against wrongful terminations (“deactivations”) also came into effect on December 1, 2024, as part of legislation passed the previous year.
Expanded Health Insurance Coverage
Minnesota health insurance plans now must meet new requirements, including coverage for abortions, gender-affirming care, and wigs for cancer patients and individuals experiencing hair loss due to medical conditions.
Protections from Surgical Smoke
Healthcare companies are now legally obligated to implement smoke evacuation systems to safeguard workers from exposure to surgical smoke.
Biden Blocks Nippon Steel Acquisition
President Biden, via executive order, blocked Japanese steel company Nippon’s proposed $14.9 billion acquisition of U.S. Steel. This action fulfills a campaign promise made by both Vice President Kamala Harris and President-elect Donald Trump. While Biden cited “credible evidence” of national security concerns, the Associated Press reported that some agencies held differing opinions. This decision is a victory for the United Steelworkers union, which represents approximately 3,500 Minnesota workers and opposed the deal, favoring a potential acquisition by Cleveland-Cliffs instead. However, a Cleveland-Cliffs acquisition might raise its own market concerns due to potential near-total control of the domestic iron ore supply, according to the *Wall Street Journal*.
Sanford Health to Pay Back Wages for Pregnancy Discrimination
Sanford Health has agreed to pay nearly $14,000 in back wages and damages to a former employee after the Minnesota Department of Labor and Industry (DLI) determined that the health system illegally reduced her hours during pregnancy and terminated her while on unpaid parental leave. The settlement includes significant civil penalties and mandates training for Sanford’s human resources staff and managers on the Women’s Economic Security Act.
Maple Grove Hospital Nurses Move to Unionize
Nearly 600 nurses at North Memorial’s Maple Grove Hospital may soon vote on unionizing with the Minnesota Nurses Association, following a “supermajority” vote in favor of an election petition filed with the National Labor Relations Board.
New Tool for Researching NLRB Questions
Matt Bruenig, known for his Substack publication *NLRB Edge*, has released a public database for researching federal labor law questions. The database contains all legal documents from the NLRB and is designed to handle complex queries, proving valuable to lawyers, union organizers, workers, and journalists alike.
By Max Nesterak, Minnesota Reformer, January 3, 2025
(Note: The concluding sections about Minnesota Reformer’s publishing information and Max Nesterak’s biography have been included in the rewritten text.)