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Find out how Remote can guide you through the complexities of managing cross-border hiring, payroll, taxes, and compliance.

Employing in Minnesota

In Minnesota, workers’ rights are protected by numerous employment and labour laws, at both the state and federal level. As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race.

Here are the key things you need to know about hiring in Minnesota.

Hours of work in Minnesota

Work and overtime laws in Minnesota are governed by the state’s Department of Labour and Industry.

What is considered full-time employment in Minnesota?

Full-time employment is generally considered to be 40 hours per week, although this is not enshrined in law.

Do pay employees get overtime in Minnesota?

Under the federal Fair Labour Standards Act, non-exempt employees are entitled to overtime pay of 1.5x their regular pay rate if they work more than 40 hours in a week.

Employees are generally (but not always) exempt from overtime if they:

  • Earn more than the specified state or federal exemption threshold
  • Perform a role with duties that are
  • Work in a certified or licensed profession, such as law, accounting, architecture, or engineering

In Minnesota, the pay threshold for exemption is currently $684 per week, which is the federal minimum.

Note that the federal pay threshold for exemption is currently being reviewed in the US.

Minimum wage in Minnesota

The minimum state wage for “small” business employees (i.e. companies with a gross annual revenue of $500,000 or less) is $8.85 per hour. For companies with gross annual revenue above $500,000, the minimum wage is $10.85 per hour.

Onboarding timeline in Minnesota

We can help you get your new employee started in Minnesota fast, with a minimum onboarding time (MOT) of just 2 working days. Note that the MOT is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Remote platform.

For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.

Please note that payroll cut-off dates can impact the actual first day of employment. Remote’s payroll cut-off date is the 10th of the month, unless otherwise specified.

Payroll cycle in Minnesota

Under state law, employees must be paid at least once every 31 days.

For Remote customers, employee payments are made twice per month in equal instalments, payable in arrears. The first payment is made on the 15th of the month and the second payment is made on the final day of the month. If relevant, bonus payments, commissions, and expense reimbursements are included in the second payment of the cycle.

Competitive benefits package in Minnesota

Remote can help you craft a competitive benefits package to attract and retain the best global talent. Our benefits experts understand the trends, requirements, and expectations of the Minnesota labour market, allowing your employees to feel appreciated and thrive.

Our benefits packages in Minnesota usually include some or all of the following:

pension_/_401k_retirement_plan
Pension / 401k retirement plan
medical_insurance
Medical Insurance
vision_insurance
Vision insurance
health_saving_plan_(hsa)
Health Saving Plan (HSA)
long_term_disability_insurance_(ltd)
Long term disability insurance (LTD)
dental_insurance
Dental insurance
life_insurance
Life insurance
flexible_spending_account_(fsa)
Flexible Spending Account (FSA)

Are employers required to provide health insurance in Minnesota?

Under the federal Affordable Care Act, organizations with a headcount of 50 or more must offer statutory health insurance to their full-time employees.

Many employers also offer some level of supplemental health insurance. While this can lead to a relative rise in employment costs, it’s an essential benefit that ensures your people have access to routine care and are covered in the event of an emergency. 

Because Remote is the employer of record (EOR), it’s important for us to offer the same core benefits to all employees to ensure fair and non-discriminatory hiring practices. This protects both your business and ours.

Note that we do not add a markup on any benefits premiums or administration costs.

Are employers required to offer 401k in Minnesota?

The state is currently in the process of mandating qualified savings plans for private sector employees.

Under this legislation, you will need to enroll your employees into the state-sponsored Minnesota Secure Choice Retirement Program (or another recognized retirement plan).

Note that this will only apply if your business:

This program is set to go live in early 2025.

Facts & Stats

Capital City
St Paul
Currency
United States Dollar
($, USD)
Population size
5,700,000
VAT - standard rate
6.875% (Additional local taxes apply)

From the shores of Lake Superior to the vibrant Twin Cities of St Paul and Minneapolis, The North Star State boasts a rich tapestry of history, culture, and natural beauty.

With a thriving economy, diverse employment opportunities across multiple industries, and a high quality of life, Minnesota is an attractive destination for job seekers.

Grow your team in Minnesota with Remote

If you want to hire in Minnesota, you’ll need to own a legal entity there — or partner with a global employment solutions provider, like Remote.  

We can employ top talent in Minnesota on your behalf and manage complex HR tasks such as onboarding, payroll, benefits, and taxes. You can also manage and pay your contractors in Minnesota through Remote.

Risks of misclassification

Minnesota, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Minnesota may lead to fines and penalties for the offending company.

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Fair Pricing in Minnesota

Payroll

39

per employee/month
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  • Powerful, transparent international payroll
  • Simple self-service platform
  • Personalised support from dedicated specialists
  • Adhere to local payroll regulations in every country
  • Integrated payroll, expense management, and HRIS solution
Contractor Management

39

per contractor/month
Book a demo
  • Only pay for contractors you actively work with
  • Work with international contractors
  • Create, edit, and sign tailored, localised contracts
  • Approve contractor invoices with one click or auto-pay
  • Transparent payments with complete visibility
Employer of Record

945 809

per contractor/month
Book a demo
  • Hire without opening a local entity
  • Guided onboarding
  • Local payroll paid on time, every time
  • Built-in security and compliance
  • Flexible, localised benefits
  • Offer equity incentives with tax assistance
  • Dedicated experts for local support