MINNEAPOLIS — The new year also brings new laws impacting Minnesota employees and employers.
Business owners say their establishments will be taking a big financial hit, but those representing workers say this helps employees achieve the pay and protections they deserve.
Business owners say minimum wage increases and expansion of sick and safe time standards are top-of-mind.
Minimum-wage rates across the state rose to $10.85 an hour Jan. 1 for larger employers and $8.85 for smaller businesses. In the Twin Cities, minimum wages for employees working at larger businesses reached $15.57 an hour. Other employers have until July to raise their wages.
An employee can also now earn an hour of time off every 30 hours they work, and a maximum of 48 hours each year unless the employer agrees to a higher amount. It also applies to part-time workers.
"I think a lot of small employers feel like they're pretty much stretched to the max right now," said John Reynolds, the State Director for the National Federation of Independent Business in Minnesota.
Reynolds says small businesses like the Whitewater Travel Plaza and Restaurant in Winona take a hit.
"Lack of workforce has already created us to cut back on the hours of operation and what divisions we kept open," said owner Mike Flynn.
He said he temporarily closed down the restaurant portion of his business because he couldn't find workers.
He says the added rules won't help him hire since he's already trying to attract workers by paying above the minimum wage. Instead, he says he will need to adjust wages and is worried about new rules he will need to implement.
"We're just trying to survive through business as we see it," said Flynn. "And we don't know how business will be from Jan. 1 on, how that will really complicate our workforce issue."
But Bernie Burnham, the president of Minnesota AFL-CIO, insists businesses shouldn't see it that way and the changes can be mutually beneficial.
"As employers, all of these things are going to benefit them in being able to help their workers feel good about work," she said. "We think everyone should get the benefits that they deserve and be able to take care of their families. But we know that in order to impact the economy of Minnesota, it's important for people to make a sustainable living."
The Minnesota Council on Latino Affairs were happy to see so many changes at the legislature for workers.
"This will guarantee they can bring a little more each day to sustain their families," said Rosa Tock. "Many of these workers are concentrated in low paid job and more often than not, they lack benefits."
On top of the changes that went into effect Jan. 1 are industry-specific safety changes for meat packers and oil refinery contractors.
Employers will also no longer be able to ask about pay history.
"If employers don't ask applicants about their salaries in previous jobs, that will also reduce that pay gap, particularly for women and people of color," said Tock.
For more information on changes for employers and employees, click here.
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