Minnesota’s new Paid Leave laws go into effect January 1, 2026, and employer notice requirements will begin in the coming days on December 1st. For many small business owners, compliance with new laws like this is hard to keep track of and could lead to undiscovered liability and a potential risk to exit value.
Here’s a realistic possible scenario that could lead to issues for you and your business:
A Business Owner Planning to Sell in the Next Few Years
An 8-employee Minnesota based company is growing and profitable. But behind the scenes: no paid leave compliance in place.
They didn’t:
- Provide multilingual notices
- Post required workplace signage
- Track leave properly
- Appoint a leave administrator
- Submit paid leave premiums
- Align with Earned Sick & Safe Time (ESST)
The result? Avoidable Damage:
- State penalties: $400–$2,400 just in notice violations, and up to $10,000 per ESST infraction
- Operational chaos: Employee complaints, claims, payroll errors
- Regulatory trouble: Missed payments = enforcement action
Buyers Will See This – Don’t Let HR Mistakes Cost You
As your trusted advisors, we want to help make you aware of changes coming in the new year so you can make the necessary adjustments for your business compliance. You’re busy running and growing your business, but don’t let the new standards fall through the cracks. Here at Sunbelt and True North, we have trusted HR partners to connect you with and they are ready to help you:
- Review Documentation
- Fix compliance gaps and avoid penalties
- Protect Valuation
- Avoid deal-risking surprises
Compliance isn’t just a legal requirement, it’s a strategic value-preserving move that protects your future exit. Let’s connect to make sure everything is prepared and aligned for 2026.
