Hiring New Employees in Minnesota: Legal Guidelines for Employers

Develop a clear job description that accurately reflects the position's duties, required qualifications, and essential functions. Ensure the description complies with Minnesota employment laws and doesn't contain discriminatory language. This will serve as the foundation for your hiring process and help prevent discrimination claims.

Advertise the position through appropriate channels and collect applications from candidates. In Minnesota, employers must be careful not to use discriminatory language in job postings and should maintain records of all applications received for at least one year from the date the position is filled (per Minnesota Human Rights Act requirements).

Create or update your employment application form to collect necessary information from candidates. In Minnesota, employers should avoid asking about criminal history on initial application forms (Ban the Box law), protected class information (age, race, religion, etc.), and must include a disclaimer that the application is not an employment contract.

Interview qualified candidates and select the best fit for the position. In Minnesota, avoid asking questions about protected characteristics such as age, race, religion, disability, marital status, or family planning. Focus on job-related qualifications and skills.

If conducting background checks, ensure compliance with the Minnesota Criminal Background Check Act and the federal Fair Credit Reporting Act (FCRA). You must obtain written consent before conducting background checks and follow specific procedures if you decide not to hire based on the results.

Create a form that complies with both Minnesota law and the FCRA, clearly explaining the scope of the background check and obtaining the candidate's consent. The form should be standalone (not embedded in the application) and clearly state that the background check will not include information prohibited by Minnesota law.

Draft an offer letter that includes the position title, start date, compensation, benefits, and employment status (full-time, part-time, exempt, non-exempt). In Minnesota, clearly state if employment is at-will. The offer letter should not make promises that could be construed as an employment contract unless that is your intention.

If offering a contract rather than at-will employment, draft a comprehensive employment contract. In Minnesota, employment contracts should clearly outline terms of employment, compensation, benefits, termination conditions, and any restrictive covenants. Consider having an attorney review the contract to ensure enforceability.

Draft a non-disclosure agreement to protect your company's confidential information and trade secrets. In Minnesota, NDAs must be reasonable in scope and duration to be enforceable. The agreement should clearly define what constitutes confidential information and the employee's obligations regarding that information.

If using non-compete agreements, ensure they comply with Minnesota law, which requires them to be reasonable in geographic scope, duration, and the type of employment restricted. Non-competes must protect legitimate business interests and provide adequate consideration. In Minnesota, continued employment alone is generally not sufficient consideration for employees who sign non-competes after beginning employment.

Federal law requires all employers to verify employment eligibility using Form I-9 within 3 business days of the employee's start date. Examine the employee's identity and employment authorization documents in person. Minnesota employers must also be aware of the state's E-Verify requirements for certain state contractors.

Have the employee complete Form W-4 to determine federal income tax withholding. This form must be completed before the first payroll is processed. Keep the completed form in the employee's file.

Have the employee complete Minnesota Form W-4MN for state income tax withholding. Minnesota has its own state withholding form that must be completed in addition to the federal W-4.

If offering direct deposit, have the employee complete a direct deposit authorization form. In Minnesota, employers cannot require direct deposit unless the employer has made other payment options available or the employee has already authorized direct deposit with a previous employer.

Have the employee provide emergency contact information. While not legally required in Minnesota, this is a best practice for workplace safety and emergency preparedness.

If offering benefits, provide the necessary enrollment forms and information. In Minnesota, employers must provide clear information about available benefits and enrollment deadlines. For health insurance, provide information about continuation coverage under both COBRA (federal) and Minnesota Continuation Coverage laws.

Provide the employee with a copy of your employee handbook and obtain a signed acknowledgment of receipt. In Minnesota, handbooks should include policies on paid sick leave (if in Minneapolis, St. Paul, or Duluth, which have local ordinances), pregnancy accommodations, nursing mother accommodations, and wage theft prevention notice requirements.

Report the new hire to the Minnesota New Hire Reporting Center within 20 days of hire. This is required by federal and state law for child support enforcement purposes. You'll need to provide the employee's name, address, Social Security number, and your company's information.

If this is your first employee in Minnesota, register with the Minnesota Unemployment Insurance Program through the Department of Employment and Economic Development. All employers must contribute to unemployment insurance for their employees.

Minnesota law requires all employers to have workers' compensation insurance. Contact an insurance provider to obtain coverage before the employee's first day of work. Failure to carry workers' compensation insurance can result in significant penalties.

Minnesota employers must display certain state and federal workplace posters in a conspicuous location. These include posters on minimum wage, safety and health protection, unemployment insurance, workers' compensation, and the Minnesota Parental Leave Act (if you have 21+ employees).

Minnesota's Wage Theft Law requires employers to provide a written notice to new employees that includes information about pay, benefits, deductions, paid leave, and other employment terms. This must be provided at the start of employment and the employee must sign an acknowledgment of receipt.

Conduct an orientation to familiarize the new employee with company policies, procedures, and workplace safety. In Minnesota, employers should cover the Wage Theft Prevention Notice, paid sick leave policies (if applicable), and any industry-specific safety requirements.

Ensure your payroll system is set up to properly withhold Minnesota state income tax, federal income tax, Social Security, and Medicare. Minnesota also has specific requirements for pay frequency and pay statements that must be followed.