Earned sick and safe time modified.

HF 1325 modifies Minnesota's earned sick and safe time law to provide employers with a grace period and adjust pay requirements. It adds a penalty waiver (Section 1), preventing monetary penalties for initial violations until after January 1, 2026. The bill also adjusts pay rates: small employers (25 or fewer full-time equivalent employees) must pay half the hourly rate, and new employers in their first 12 months may optionally provide paid leave (Section 2). Employees accrue one hour of leave for every 30-40 hours worked, up to a maximum of 48 hours annually (Section 5), while expanding the definition of "family member" to include more relatives and up to one annually designated individual (Section 4). This primarily affects Minnesota employers and their workers covered under the law.