Minnesota Employer Notice Period Requirements for Termination

Key Takeaways

• The Minnesota Department of Labor and Industry states that no notice of separation is required by law, but Minn. Stat. § 181.81 requires notice in one situation involving employees 65 or older.
• I suggest that a written termination letter state the employee’s name, the termination date, and how final wages and any accrued benefits will be paid.
• A terminated employee who asks in writing has a right to a truthful written reason under Minn. Stat. § 181.933.
• Employment contracts or collective bargaining agreements may impose additional notice obligations.

Overview of Minnesota Employment Termination Laws

The Department’s guidance describes Minnesota as an at-will state: “an employer can fire any employee for any reason as long as that reason is not illegal.” An employee with a contract or a collective bargaining agreement may have additional protection under its terms. Statutes make some reasons illegal. Under the Minnesota Human Rights Act, Minn. Stat. § 363A.08, subd. 2, it is an unfair employment practice for an employer to “discharge an employee” because of a listed characteristic such as race, sex, disability, or age. Such a discharge is one form of wrongful termination. Minn. Stat. § 181.932, subd. 1 provides that “An employer shall not discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise retaliate or discriminate against an employee” for the protected reports and refusals that subdivision lists.

Notice Period Requirements for Termination

For at-will employees, the Department’s guidance states that no notice is required by law. When an employment agreement or collective bargaining agreement specifies a notice period, the employer should follow its terms. Minnesota’s mandatory retirement statute adds one notice rule. Minn. Stat. § 181.81, subd. 1 provides: “When an employer intends to terminate an employee who is 65 years of age or older earlier than age 70 on the ground that the employee no longer can meet the bona fide requirements for the job or position the employer shall give the employee 30 days’ notice of that intention.” I suggest checking the current text of § 181.81 before relying on this period.

Written Termination Notice: What to Include

I suggest that a written termination letter state the employee’s name, the effective date of termination, and how final wages and any accrued vacation or severance will be paid, because final pay has its own statutory deadlines. For a discharged employee, Minn. Stat. § 181.13(a) provides that “the wages or commissions actually earned and unpaid at the time of the discharge are immediately due and payable upon demand of the employee,” and “If the employee’s earned wages and commissions are not paid within 24 hours after demand, whether the employment was by the day, hour, week, month, or piece or by commissions, the employer is in default.” For an employee who quits, Minn. Stat. § 181.14, subd. 1(a) requires payment “not later than the first regularly scheduled payday following the employee’s final day of employment,” and “If the first regularly scheduled payday is less than five calendar days following the employee’s final day of employment, full payment may be delayed until the second regularly scheduled payday but shall not exceed a total of 20 calendar days following the employee’s final day of employment.” I suggest checking the current text of §§ 181.13 and 181.14 before relying on these periods.

The reason for the termination has its own rule. Under Minn. Stat. § 181.933, subd. 1, “An employee who has been involuntarily terminated may, within 15 working days following such termination, request in writing that the employer inform the employee of the reason for the termination. Within ten working days following receipt of such request, an employer shall inform the terminated employee in writing of the truthful reason for the termination.” Subdivision 2 provides that “No communication of the statement furnished by the employer to the employee under subdivision 1 may be made the subject of any action for libel, slander, or defamation by the employee against the employer.” I suggest checking the current text of § 181.933 before relying on these periods. Because that statement can later be compared with the employer’s position in a discrimination or retaliation claim, I suggest drafting it from the records made when the decision was made.

I also suggest delivering the letter in a way that shows when the employee received it, and including instructions for returning company property and information about any continuation of benefits.

Layoffs and Plant Closings

A large layoff can trigger federal notice. The Worker Adjustment and Retraining Notification (WARN) Act, at 29 U.S.C. § 2102(a), provides that “An employer shall not order a plant closing or mass layoff until the end of a 60-day period after the employer serves written notice of such an order.” It applies to an “employer” as defined in 29 U.S.C. § 2101(a)(1), meaning “any business enterprise that employs” either “100 or more employees, excluding part-time employees” or “100 or more employees who in the aggregate work at least 4,000 hours per week (exclusive of hours of overtime).” Section 2102(b)(2) shortens or removes the notice period in two situations: “An employer may order a plant closing or mass layoff before the conclusion of the 60-day period if the closing or mass layoff is caused by business circumstances that were not reasonably foreseeable as of the time that notice would have been required,” and “No notice under this chapter shall be required if the plant closing or mass layoff is due to any form of natural disaster.” I suggest checking the current text of § 2102 before relying on these periods.

Employer and Employee Rights During Termination Process

An at-will employer may end the relationship for any lawful reason, and the Department’s guidance states that “An employee can quit for any reason.” Both parties are bound by any contract or collective bargaining agreement that sets termination terms. An employee who believes a termination was based on a protected characteristic, or was retaliation for protected activity, can bring a claim under the statutes described above.

Frequently Asked Questions

Can Termination Notices Be Delivered via Email in Minnesota?

None of the statutes discussed on this page prescribes a delivery method for an at-will termination letter. If a contract or collective bargaining agreement sets a delivery method for notice, I suggest following it. I also suggest keeping a record that shows when the employee received the letter.

Are There Penalties for Employers Who Skip Termination Notice?

For an at-will employee with no contract, the Department’s guidance states that no notice of separation is required by law. Where a contract or collective bargaining agreement requires notice, skipping it can support a claim for breach of that agreement. For a covered layoff or plant closing, 29 U.S.C. § 2104(a)(1) makes “Any employer who orders a plant closing or mass layoff in violation of section 2102 of this title” liable to each aggrieved employee for “back pay for each day of violation” and for benefits under an employee benefit plan.

How Does Minnesota Law Handle Termination Notices During Probation Periods?

The Department’s statement that no notice of separation is required by law draws no line for probationary employees. A contract, collective bargaining agreement, or employer policy that sets probation terms can set its own notice terms.

Is Severance Pay Required With Termination Notices in Minnesota?

The Department’s guidance treats severance as a matter of company policy: “Company policy can determine when any benefits are due, such as vacation, sick leave and severance packages.” A contract, collective bargaining agreement, or policy can create a severance obligation.

Do Termination Notice Requirements Differ for Part-Time Employees?

The Department’s statement that no notice of separation is required by law draws no line between full-time and part-time employees. The federal WARN Act counts differently: its definition of “employer” in 29 U.S.C. § 2101(a)(1) counts “100 or more employees, excluding part-time employees,” and § 2101(a)(8) defines a part-time employee as “an employee who is employed for an average of fewer than 20 hours per week or who has been employed for fewer than 6 of the 12 months preceding the date on which notice is required.”