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City of Minneapolis reaches settlement agreement with clothing retailer for sick and safe time violations

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The City of Minneapolis has entered into a settlement agreement with a clothing retailer for failing to give employees the sick leave they are entitled under the City’s sick and safe time ordinance.

A Labor Standards Enforcement Division investigation of a Rainbow clothing store operated by Rainbow USA, Inc. at 621 W. Broadway Ave. revealed failures to provide access to sick leave for workers, including public-facing staff, during the pandemic. The City of Minneapolis Department of Civil Rights has now resolved this case with a settlement agreement, recovering over $10,000 in back wages and penalties while also ensuring affected workers receive access to sick leave moving forward. 

In 2021, over 1,000 workers gained new access to sick and safe time benefits as a result of City labor standards investigations conducted by the Department of Civil Rights. 

The City’s sick and safe time ordinance requires employers to provide some access to leave because working-while-sick endangers everyone. The goal of the ordinance is to protect public health and prevent workers from being penalized because of illness or a need to care for a sick family member. It applies based on the physical location of an employee while the employee is performing work within the city’s geographical borders.

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