How to Hire a New Employee in Minnesota (2026)
Reviewed by DocDraft Legal Team · Minnesota · Last updated 2026-05-18
Bringing on an employee in Minnesota starts with the state minimum wage and the federal new-hire reporting clock. In Minnesota, $11.41 per hour for all employers effective January 1, 2026 (CPI-adjusted); 90-day training wage for workers under 20: $9.31. The statutory anchor is Minn. Stat. section 177.24. The state new-hire portal is the state agency website with the report due within 20 days of hire date or rehire date. This guide explains the Minnesota-specific rules on UI registration, workers' compensation thresholds, E-Verify, mandatory posters, and at-will employment.
Key Considerations
Compensation in Minnesota starts at a statutory floor. $11.41 per hour for all employers effective January 1, 2026 (CPI-adjusted); 90-day training wage for workers under 20: $9.31. Minneapolis $16.37, St. Paul tiered local rates exceed state floor. The controlling provision is Minn. Stat. section 177.24 (Minnesota Fair Labor Standards Act).
Beyond payroll and registration, Minnesota layers three legal-risk controls onto the employment relationship. Workers' comp threshold: No minimum number of employees E-Verify use: A contract for services valued in excess of $50,000 must require certification from the vendor and any subcontractors that, as of the date services on behalf of the state of Minnesota will be performed, the vendor and all subcontractors have implemented or are in the process of implementing the federal E-Verify program for all newly hired employees in the United States who will perform work on behalf of the state of Minnesota. The at-will doctrine in Minnesota: Minnesota is an employment "at will" state. An employee can quit for any reason; an employer can fire any employee for any reason as long as that reason is not illegal, such as discrimination based on race, creed, color, sex, national origin, ancestry, religion, age, disability, sexual orientation or marital status.
Minnesota runs two parallel registrations once a hire is made. The new-hire report goes to the state agency website Within 20 days of hire date or rehire date The state unemployment insurance registration runs
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Relevant Documents
The document set for hiring in Minnesota, anchored to the state minimum-wage statute (Minn. Stat. section 177.24 (Minnesota Fair Labor Standards Act).), includes: (a) federal Form I-9 (employment eligibility verification); (b) federal Form W-4 plus the Minnesota state withholding addendum where applicable; (c) the Minnesota new-hire report filed via the state agency (Within 20 days of hire date or rehire date); and (d) workers' compensation paperwork: No minimum number of employees
Employee Handbook
A comprehensive document outlining company policies, procedures, work rules, benefits, and expectations. Provides important information to new employees and serves as a reference for all staff.
Employment Application Form
A standardized form for collecting information from job applicants including work history, education, skills, and references. This helps employers make informed hiring decisions and serves as documentation of the hiring process.
Employment Contract
A comprehensive legal agreement between employer and employee detailing all terms and conditions of employment including duties, compensation, benefits, termination procedures, and confidentiality requirements.
Employment Offer Letter
A formal document outlining the terms of employment including position, salary, benefits, start date, and other conditions. This establishes clear expectations and serves as evidence of the employment agreement.
Non-Compete Agreement
A contract that restricts an employee from working for competitors or starting a competing business for a specified period after employment ends. Enforceability varies significantly by state.
Non-Disclosure Agreement
Protects your confidential information, trade secrets, and intellectual property that you may need to share with the manufacturer during the course of your relationship. This should be signed before detailed discussions begin.
Relevant Laws
Minnesota Fair Labor Standards Act
Establishes minimum wage, overtime pay, recordkeeping, and child labor standards for Minnesota employers. Employers must pay at least the state minimum wage (which is higher than the federal minimum wage in Minnesota) and comply with overtime requirements.
Minnesota Human Rights Act
Prohibits employment discrimination based on race, color, creed, religion, national origin, sex, marital status, disability, public assistance status, sexual orientation, age, or familial status. Employers must ensure their hiring practices do not discriminate against protected classes.
Minnesota Unemployment Insurance Law
Requires employers to pay unemployment insurance taxes and report new hires to the Minnesota Department of Employment and Economic Development within 20 days of hire. This reporting helps with child support enforcement and prevents unemployment insurance fraud.
Minnesota Workers' Compensation Act
Mandates that employers provide workers' compensation insurance for employees. This insurance covers medical expenses and wage replacement for employees who are injured on the job or develop work-related illnesses.
Minnesota Parenting Leave Act
Requires employers with 21 or more employees to provide up to 12 weeks of unpaid leave to eligible employees for the birth or adoption of a child. This is important to understand when establishing leave policies for new employees.
Minnesota Wage Disclosure Protection Law
Prohibits employers from requiring employees to keep their wages confidential and protects employees who disclose their wages. Employers cannot retaliate against employees who discuss compensation information.
E-Verify Requirements in Minnesota
While not mandatory for all employers in Minnesota, state contractors and subcontractors must use E-Verify to confirm employment eligibility of newly hired employees. Understanding these requirements is important when establishing hiring procedures.
Minnesota Wage Theft Prevention Act
Requires employers to provide written notice to employees about employment terms, including wages, hours, and benefits. Employers must also maintain detailed employment records and provide earnings statements. Violations can result in criminal penalties.
Regional Variances
Twin Cities Metro Area
Minneapolis has a $15.57 minimum wage (as of July 2024) for large businesses (100+ employees), which is higher than the state minimum wage. The city also has its own Sick and Safe Time Ordinance requiring employers to provide paid sick leave to employees who work at least 80 hours per year in Minneapolis.
St. Paul has a tiered minimum wage system based on employer size, with large businesses (10,000+ employees) required to pay $15.57 per hour as of July 2024. The city also has its own Earned Sick and Safe Time Ordinance with specific requirements for paid sick leave.
Greater Minnesota
Duluth has its own Earned Sick and Safe Time Ordinance that requires employers to provide one hour of paid sick time for every 50 hours worked, which differs from state requirements.
Rochester follows state employment laws without additional local requirements, but has specific zoning and business licensing requirements that may affect certain types of employers.
Border Communities
Employers in Moorhead must navigate cross-border employment issues with neighboring Fargo, North Dakota. North Dakota has different employment laws, which can create compliance challenges for businesses operating in both states.
Winona employers near the Wisconsin border may have employees who live in Wisconsin, requiring compliance with Wisconsin state tax withholding requirements in addition to Minnesota employment laws.
Suggested Compliance Checklist
Complete the state new-hire report
On hire days after startingMinnesota's portal: consult the state agency Within 20 days of hire date or rehire date
Activate an employer UI tax account in Minnesota
Before first payroll days after startingRegistration runs
Handle Form I-9 employment verification at onboarding
Before first hire days after startingThe worker completes Section 1 by their first day; the employer verifies documents and signs Section 2 within 3 business days of hire.
Collect federal Form W-4 and any Minnesota state-tax withholding addendum required by the state revenue agency
On hire days after startingThe federal Form W-4 is the floor; the state addendum (where the state has its own withholding regime) drives state income-tax deductions.
Confirm workers' compensation coverage status
On hire days after startingIn Minnesota, No minimum number of employees
Check the Minnesota E-Verify statute on public and private employer use
Before hire days after startingA contract for services valued in excess of $50,000 must require certification from the vendor and any subcontractors that, as of the date services on behalf of the state of Minnesota will be performed, the vendor and all subcontractors have implemented or are in the process of implementing the federal E-Verify program for all newly hired employees in the United States who will perform work on behalf of the state of Minnesota.
Set the at-will employment representation in writing
Before first hire days after startingMinnesota posture: Minnesota is an employment "at will" state. An employee can quit for any reason; an employer can fire any employee for any reason as long as that reason is not illegal, such as discrimination based on race, creed, color, sex, national origin, ancestry, religion, age, disability, sexual orientation or marital status.
Compile the workplace-poster set required in Minnesota
Before hire days after startingAge discrimination; Employer-sponsored meetings or communications; Minimum-wage rates; Paid Leave; Safety and health protection on the job; Unemployed?; Workers' compensation
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Complete the state new-hire report | Minnesota's portal: consult the state agency Within 20 days of hire date or rehire date | - | On hire |
| Activate an employer UI tax account in Minnesota | Registration runs | - | Before first payroll |
| Handle Form I-9 employment verification at onboarding | The worker completes Section 1 by their first day; the employer verifies documents and signs Section 2 within 3 business days of hire. | - | Before first hire |
| Collect federal Form W-4 and any Minnesota state-tax withholding addendum required by the state revenue agency | The federal Form W-4 is the floor; the state addendum (where the state has its own withholding regime) drives state income-tax deductions. | - | On hire |
| Confirm workers' compensation coverage status | In Minnesota, No minimum number of employees | - | On hire |
| Check the Minnesota E-Verify statute on public and private employer use | A contract for services valued in excess of $50,000 must require certification from the vendor and any subcontractors that, as of the date services on behalf of the state of Minnesota will be performed, the vendor and all subcontractors have implemented or are in the process of implementing the federal E-Verify program for all newly hired employees in the United States who will perform work on behalf of the state of Minnesota. | - | Before hire |
| Set the at-will employment representation in writing | Minnesota posture: Minnesota is an employment "at will" state. An employee can quit for any reason; an employer can fire any employee for any reason as long as that reason is not illegal, such as discrimination based on race, creed, color, sex, national origin, ancestry, religion, age, disability, sexual orientation or marital status. | employment-offer-letter | Before first hire |
| Compile the workplace-poster set required in Minnesota | Age discrimination; Employer-sponsored meetings or communications; Minimum-wage rates; Paid Leave; Safety and health protection on the job; Unemployed?; Workers' compensation | - | Before hire |
Frequently Asked Questions
$11.41 per hour for all employers effective January 1, 2026 (CPI-adjusted); 90-day training wage for workers under 20: $9.31. Minneapolis $16.37, St. Paul tiered local rates exceed state floor. The statutory anchor is Minn. Stat. section 177.24 (Minnesota Fair Labor Standards Act).
Minnesota requires the new-hire report to be filed Within 20 days of hire date or rehire date. The state portal is the state agency website. The federal anchor for the report itself is the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996.
In Minnesota, the E-Verify posture for private employers is: A contract for services valued in excess of $50,000 must require certification from the vendor and any subcontractors that, as of the date services on behalf of the state of Minnesota will be performed, the vendor and all subcontractors have implemented or are in the process of implementing the federal E-Verify program for all newly hired employees in the United States who will perform work on behalf of the state of Minnesota. Federal contractors with a FAR E-Verify clause must still use E-Verify regardless of state law.
Other Minnesota guides
Setting Up a Business Partnership in Minnesota (2026)
Small Business Loan Guide for Minnesota (2026)
Setting Up a Manufacturing Relationship in Minnesota (2026)
Landlord Rules in Minnesota: Renting Out Property (2026)
How to File a Small Claims Lawsuit in Minnesota (2026)
How to Dispute a Bill in Minnesota (2026)
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