A Minnesota employment contract outlines what is expected of the parties and includes details such as the job responsibilities of the employee, the period of employment, the compensation the employee will receive, how the employee can be terminated, and any confidentiality clauses.
In Minnesota, a contract is valid if it involves an offer, acceptance, and consideration. Employment agreements may be written or oral. [1] .
- Laws: Minnesota Statutes Chapters 175-186.
- Definition of Employee: § 176.011(9): “Any person who performs services for another for hire(…)”
By Type
Independent Contractor Agreement
Defines a business relationship between a contractor and a client.
Subcontractor Agreement
Outlines the scope of a collaboration between a contractor and a subcontractor.
Employee Non-Compete Agreement
Protects the employer's trade secrets and other confidential information.
Employee Non-Disclosure Agreement
Upholds privacy for sensitive data, restricting unauthorized access.
Hiring in Minnesota
If you’re using a Minnesota employment contract, you must know the state labor laws and requirements.
At-Will Employment
Minnesota is an at-will employment state. There are also exceptions to the at-will employment rules.
Exceptions
- Public Policy: Yes
- Implied-Contract: Yes
- Good-Faith Exception: No
Minimum Wage ($/hr)
Minnesota’s minimum wage requirements depend on the size of the employer.
For an enterprise with annual revenues of $500,000 or more, the minimum wage is:
Basic Minimum Rate (per hour): $10.59 [2] .
For an enterprise with annual revenues of less than $500,000, the minimum wage is:
Basic Minimum Rate (per hour): $8.63.
For both businesses sizes:
Premium Pay After Designated Hours: Weekly – 48.
Employees under 18 years old may be paid $8.63 per hour.
Child Labor
Employment certificates are required in Minnesota for minors under 16 during school hours [3] .
Age certification is not required in Minnesota. However, employers are required to obtain and keep on record proof of age for any minors they employ.
Payday
In Minnesota, employers must pay employees all wages at least once every 31 days. This includes salary, earnings, and gratuities. Any commissions earned by an employee have to be paid at least once every three months on a regular payday [4] .
Meal and Rest Breaks
Minnesota requires paid break periods for employees within each four-hour consecutive work period to utilize the nearest restroom. Any rest periods of less than 20 minutes may not be deducted from the total hours worked.
Meal periods are also required in Minnesota. For employees working eight consecutive hours or more, sufficient unpaid time for employees is required.
Recordkeeping Requirements
Employers in Minnesota with 20 or more employees must keep personnel records for at least three years [5] and for:
- Discrimination
- Safety & health/workers’ compensation
- Child labor
- Unemployment insurance (4 years)
Sample
Download a Minnesota employment contract template in PDF or Word format below.
