On February 3, 2021, the Minnesota Supreme Court held in
Hall v. City of Plainview that a general disclaimer that a handbook should not be construed as a contract may not be effective to prevent a paid time off (PTO) policy contained in the handbook from forming a contract. The court also upheld its previous interpretation of Minnesota Statutes § 181.13, which outlines the timing requirements for paying unpaid wages, holding that the 2013 amendments to the law did not create a new, independent substantive right to recover compensation. In light of the decision, employers should review their handbooks or policy statements for language that could create a right to benefits, review their vacation, sick leave, and other PTO policies for clarity, and ensure that any handbook disclaimers are drafted specifically to prevent the formation of contractual rights.