Five 2025 legal updates businesses should know about

Five 2025 legal updates businesses should know about

Every new year comes with some new laws, and business owners and entrepreneurs should be mindful of a few key items this year. Most of the legal updates apply to employees including new wages, new requirements around disability training, and new unemployment requirements.

1. New minimum wage

The state minimum wage ticked up on January 1. As of 2025, the state minimum wage is $11.13 an hour for all employers, up from $10.85 in 2024. The 90-day training wage for employees under 20 also rose to $9.08.

The bump represents the final uptick currently legislated by Minnesota lawmakers.

Employers should also confirm they are paying any minimum wages required by their city or municipality. Minneapolis, for instance, also requires a $15.97 minimum wage as of January 1.

Check out the law, and the limited exemptions at the Minnesota Department of Labor and Industry.

2. Sick time for employees

Building on the Earned Sick and Safe Time law that went into effect last year, there is a slight update for employers.

As of January 1, 2025, any employers that allow employees to use their paid time off as sick time must treat the full paid time balance as earned sick and safe time. E.g. employers cannot stipulate three sick days if employees use that time as sick time.

Employers must also keep records of leave time for three years. Learn more at the Department of Labor and Industry.

Coming in 2026, there will also be a new requirement for employers to provide paid family and medical leave for up to 12 weeks.

3. Salary ranges

Employers with 30 employees or more are required to include a salary range in internal and external job postings as well as a description of benefits and other non-salary compensation. This includes any postings on job posting platforms.

According to the law, this needs to be a “good faith estimate” and cannot be an open-ended range.

Take a look at the law on the Minnesota Legislature website.

4. Unemployment benefits increase

Unemployment insurance rates are ticking up in Minnesota and employers will need to pay an additional assessment this year.

As of 2025, the base rate for unemployment insurance will be 0.4%, and can range up to 8.9% for employers who have more unemployment insurance usage. Additionally, all employers with covered employment will pay an additional 5% additional assessment to replenish Minnesota’s unemployment insurance trust fund.

All employers affected should already have received a letter from Minnesota. See the Minnesota Unemployment Insurance page for more details.

5. Data privacy laws

It’s not here yet, but a new data privacy law will impact operations for many businesses. Business should prepare for a wide sweeping data privacy law that will go into effect on July 1, 2025.

Under the new law, businesses need to limit personal data to what is necessary, maintain safe data practices, and obtain consent before processing any sensitive data. Businesses must also provide clear mechanisms for revoking consent and allow users to opt out of the sale of their personal data.

Read more about the act at the Minnesota Legislature.

Lastly, don’t forget about registering with the Financial Crimes Enforcement Network (FinCEN). The deadline has been delayed due to a court case, but business owners should pay attention to updates.