Hiring, Benefits, Employee Policies - League of Minnesota Cities

Q1. How can I limit employee turnover in my city?

Q2. With a tight local labor market, we are considering hiring a remote worker from another state. Can you clarify which state laws govern out-of-state remote workers?

Q3. What do I do when an employee is not performing as expected?

Q4. Why do I need personnel policies or an employee handbook in my city?

Q5. It’s been a while since we reviewed our employment applications. What should we be checking for?

Q6. What can I legally ask in an interview?

Q7. Do I have to post all city vacancies?

Q8. How can we improve our seasonal hiring process?

Q1: How can I limit employee turnover in my city?

A1: Employee turnover refers to the loss of employees over time through resignations, retirements, layoffs, and terminations. While some turnover is healthy and expected, cities should monitor both the rate of turnover, and the reasons employees leave. Understanding these trends can help identify opportunities to improve recruitment, retention, and workforce planning.

Strategies to reduce unwanted turnover may include hiring employees whose skills, qualifications, and values align with the organization’s needs; offering a competitive total compensation package; and supporting work-life balance. Cities may also consider retention initiatives such as flexible work arrangements, employee recognition programs, career development and training opportunities, and succession planning efforts. Some employers have also implemented incentives to encourage employees to provide advance notice of retirement or resignation, allowing more time to recruit, onboard, and train replacements (see Lakeville’s Advance Resignation Notice Program).

Q2: With a tight local labor market, we are considering hiring a remote worker from another state. Can you clarify which state laws govern out-of-state remote workers?

A2:Although requirements vary by state, most employment-related laws, such as wage and hour, workers’ compensation, unemployment insurance, Earned Sick and Safe Time (ESST), and Minnesota Paid Leave (MNPL), generally apply based on the state in which an employee performs work.

Thus, the answer depends not only on the type of employment issue (e.g., payroll taxes, leave eligibility, or employee benefits), but also on the laws of the state, and sometimes the local jurisdiction, where the employee performs work. For example, Minnesota Paid Leave uses a different standard than many employment laws. Rather than looking solely to where the work is performed, coverage may depend on whether an employee’s work is considered localized in Minnesota. Generally, if a remote employee physically performs at least 50% of their work in Minnesota, all wages paid to that employee are subject to the Minnesota Paid Leave program. Be sure to review State Employment Law Considerations for Remote and Related Workers.

The absence of a defined threshold does not necessarily mean the law does not apply, and the relevant agency or court may ultimately determine that it does. In situations where the law is unclear, the conservative approach may be to comply with whichever state’s law is more protective of the employee.

Minnesota’s ESST and Paid Leave laws provide specific eligibility standards:

Earned sick and safe time (ESST): An employee is eligible if they are expected to work at least 80 hours in a year for an employer in Minnesota. According to guidance from the Minnesota Department of Labor and Industry (DLI), employees who work exclusively outside Minnesota are not eligible.
Minnesota’s Paid Leave (MNPL): This program generally covers employees who perform work in Minnesota and whose wages are reported to the state for MNPL purposes. Employees who work entirely outside Minnesota generally are excluded, though coverage questions may arise for employees who work in multiple states or whose work locations change.

Cities with remote or multistate employees should carefully evaluate their obligations under both Minnesota law and the laws of the state where the employee performs work.

For additional information:

Q3: What do I do when an employee is not performing as expected?

A3: Ideally, all employees should receive regular performance evaluations to provide feedback, reinforce expectations, and identify opportunities for growth. When an employee is not meeting performance expectations, cities should follow their established policies and procedures for corrective action.

Consistently addressing performance issues is important. Allowing one employee’s performance deficiencies to go unaddressed while disciplining another for similar conduct can undermine workplace morale and may increase the city’s risk of legal liability.

As discussed in the League’s HR Reference Manual, Chapter 3: Discipline and Termination, one of the first steps is determining the underlying cause of the performance issue. For example, is the issue related to an employee’s knowledge or skills, a misunderstanding of expectations, a lack of motivation or engagement, or another contributing factor? Identifying the root cause can help determine the most appropriate response.

Even in an at-will employment relationship, a city may not take adverse employment action for discriminatory, retaliatory, or other legally prohibited reasons. In addition, cities must be aware that certain employees may have additional protections, such as those provided under the Minnesota Veterans Preference Act. Eligible veterans who have completed the required probationary period generally have removal rights that require a city to follow specific procedures before termination or certain adverse employment actions may occur. Accordingly, any disciplinary action or termination decision should be based on a legitimate, nondiscriminatory, and nonretaliatory reason that is supported by the facts and should follow all applicable legal requirements, including any veterans preference protections that may apply.

Cities are strongly encouraged to consult with their city’s legal counsel before taking significant disciplinary action or terminating an employee. This will help ensure legal requirements and appropriate procedures are followed. Any disciplinary action should be based on a legitimate, nondiscriminatory, and nonretaliatory reason that is supported by the facts.

When determining the appropriate level of corrective action, cities should consider factors such as:

The seriousness of the employee’s conduct.
Its impact on the workplace.
Whether the behavior is isolated or repeated.
The employee’s length of service.
Applicable policies.
Prior notice or performance-related discussions provided to the employee.
Any mitigating or extenuating circumstances.

Finally, documentation is critical. Cities should document performance concerns, performance-related discussions, disciplinary actions, and written communications outlining performance expectations and required improvements. Thorough documentation creates a clear record of the issues, the city’s response, and the employee’s opportunities to improve, while helping demonstrate that workplace standards are applied consistently, fairly, and in accordance with applicable legal requirements.

Q4: Why do I need personnel policies or an employee handbook in my city?

A4: Personnel policies establish the rules and guidelines that help a city manage its workforce consistently and effectively. They provide a framework for hiring, onboarding, compensation, benefits, leave administration, performance management, discipline, and other employment-related matters. Well-written personnel policies promote consistency in decision-making, help ensure employees are treated fairly and equitably, and communicate the city’s expectations and employment practices to both employees and supervisors. Personnel policies also demonstrate that the city has thoughtfully considered workplace issues and established clear expectations and procedures for administering employment matters.

While no policy can address every situation, comprehensive personnel policies help reduce uncertainty, support compliance with applicable laws, and serve as a valuable resource for managers, supervisors, and employees.

Cities do not need to start from scratch when developing or updating personnel policies. View the League’s Personnel Policy Template (doc). This template provides a comprehensive model that cities can customize to meet their specific needs.

Q5: It’s been a while since we reviewed our employment applications. What should we be checking for?

A5: While an employment application is a valuable tool for gathering information about an applicant’s education, qualifications, and work experience, it is important to ensure the city is asking only lawful and job-related questions at the appropriate stage of the hiring process.

Employment applications generally should not request protected class information or other information that may create legal risk, such as an applicant’s maiden name, Social Security number, date of birth, arrest or conviction history (except where permitted by law), or current or previous pay history.

Minnesota’s “ban the box” law prohibits public employers from asking about an applicant’s criminal convictions on the employment application unless a criminal background check is required by state or federal law. In addition, beginning Jan. 1, 2024, employers may not ask for, consider, or require an applicant’s pay history for the purpose of determining compensation. Applicants may voluntarily disclose their pay history, without prompting, as part of compensation negotiations. The Minnesota Department of Human Rights provides additional guidance on the state’s pay history law.

Cities should also remember that the Minnesota Veterans Preference Act applies to public employers. Employment applications and hiring procedures should be consistent with veterans preference requirements, including ensuring that eligible applicants have an opportunity to claim veterans preference and provide the required supporting documentation during the hiring process. For more information, see the League’s veterans preference in hiring information memo.

Finally, Minnesota’s pay transparency law, effective Jan. 1, 2025, requires certain employers to include salary range and benefits information in job postings. When updating hiring documents, cities should review both their employment application and related recruitment materials to ensure they comply with current legal requirements. For more information, see the League’s HR Reference Manual, Chapter 2: Hiring.

Cities do not need to start from scratch when updating their employment application. The League’s model employment application (doc) incorporates many of these legal requirements and provides a helpful starting point that cities can customize to meet their needs.

Q6: What can I legally ask in an interview?

A6: Cities should avoid asking applicants questions that are not job-related or that seek information about a protected characteristic. Examples include questions about an applicant’s family or children, childcare arrangements, marital status, disability, race, color, national origin, religion, sex, sexual orientation, gender identity, age, or other characteristics protected by law.

Minnesota law also prohibits discrimination based on race-associated traits. The CROWN Act (Creating a Respectful and Open World for Natural Hair) amended the Minnesota Human Rights Act to clarify that “race” includes traits like hair texture and protective hairstyles, such as braids, locs, and twists.

Asking questions about protected characteristics, or making employment decisions based on them, may result in discrimination claims, investigations by the U.S. Equal Employment Opportunity Commission (EEOC) or the Minnesota Department of Human Rights (MDHR), and potential legal liability.

Cities should also avoid asking applicants about their current or previous salary history, except as permitted by law when an applicant voluntarily discloses that information during compensation negotiations.

For more information on lawful interview questions, see the League’s Pre-Employment Inquiry Guide (pdf). The guide provides examples of questions cities may and may not ask during the hiring process.

Q7: Do I have to post all city vacancies?

A7: Not necessarily. In most situations, no state or federal law specifically requires a city to advertise a job opening. However, there are several reasons a city may choose to advertise or post all vacancies, and in some circumstances, a legal obligation may exist. For example, a collective bargaining agreement may require a city to post bargaining unit vacancies internally for a specified period before advertising externally. Likewise, many cities adopt policies requiring all vacancies to be publicly posted as part of their equal employment opportunity or affirmative action efforts.

Publicly advertising positions can help attract a broader and more diverse applicant pool while demonstrating the city’s commitment to fair and equitable hiring practices. It may also strengthen the city’s position in responding to hiring-related complaints or discrimination claims. Public postings also promote a competitive hiring process by giving qualified applicants an opportunity to apply.

Cities should remember that the Minnesota Veterans Preference Act applies when filling positions through a competitive hiring process. Accordingly, recruitment and selection procedures should be structured to ensure eligible veterans receive the preference provided by law.

Beginning Jan. 1, 2025, employers with 30 or more employees are required to include the starting salary range and a general description of benefits and other compensation in any printed or electronic job posting. This requirement also applies to job postings created or published by a third-party recruiter or executive search firm on the city’s behalf.

For additional information on job posting, see Section IV, D in the League’s HR Reference Manual, Chapter 2: Hiring.

Cities may also list employment opportunities on the League’s careers page.

Q8: How can we improve our seasonal hiring process?

A8: We have a MemberLearn online course for that! This free course for LMC members is designed specifically for small cities and provides an overview of seasonal employment considerations, including:

Common characteristics of seasonal work.
Requirements for employing minors.
Recruitment strategies to help attract seasonal employees.

Access the MemberLearn course Tips for Seasonal Hiring.

Cities can also explore seasonal recruitment case studies featured on the City Career Advantage webpage. These case studies offer creative and ideas to consider when developing or improving seasonal hiring efforts.

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