Attention Employers! Paid Family and Medical Leave Mandate Fast Facts.

1/31/2023

This proposal currently in front of the Legislature would create a new, mandatory 24 week paid leave program for all MN employers and employees. The program would begin taking effect in 2025, with implementation starting in 2023.

Every MN employer regardless of size is mandated to participate. “Covered Employment” can include extraterritorial employment outside of MN so long as some work is performed in MN and the employer is a MN employer.· Two main types of leave are required to be available. Leave may be taken in increments: 1) Paid medical leave – up to 12 weeks paid leave for a serious health condition or pregnancy; 2) Paid family leave – up to 12 weeks paid leave to care for a newborn, adopted or foster child; safety leave; or to care for a family member who has a serious health condition.
The leave can be stacked together for a total of 24 weeks. An additional up to 12 weeks is available for a military exigency. This is in addition to existing unpaid federal Family and Medical Leave Act requirements in some instances.
Employers will be charged a .7% payroll tax to fund the program. There is no cap on the tax, meaning if program costs exceed the amount collected, the state will raise the tax. Employers may “charge back” employees for up to 50% of the tax, but must do so under proportion, contract, or wage requirements.
Employees will be paid a partial wage replacement based on their income on a progressive scale. For lower income workers, the wage replacement rate will start at 90%.
Employees have reinstatement rights – meaning their jobs must be held for them upon their return from leave.
Employers may opt out of the mandate if they provide a leave program at least as generous as the state required mandate. Employers must submit their plans to the state for approval for opting out. Employers who opt out will be assessed a fee.
Employees are eligible 90 days after hire.

CONTACT YOUR LEGISLATORS TO VOICE YOUR CONCERNS:
Senator Jordan Rasmusson (R) District 9
(218) 205-5062 | [email protected]
Senator Torrey Westrom (R) District 12
(651) 296-3826 | [email protected]
Representative Mary Franson (R) District 12B
(651) 296-3201 | [email protected]
Representative Tom Murphy (R) District 9B
(218) 640-1707 | [email protected]

Corey

3/24/2023 01:43:25 pm

Hello - I noted your bullets here indicating that this proposed bill does not have a cap. The bill outlines such a cap stating "in no year shall the annual premium rate exceed 1.2 percent of taxable wages paid to each employee." (Subd. 6 (b))
There seems to be a rush here to discredit this bill and the benefits it would create for employees, at minimal cost to businesses. There is such a need for some type of family and medical leave, the benefits are substantial for material and infant health, and the Chamber could provide a lot of guidance in helping to create something that works for both businesses and employees instead of discrediting each bill that comes to the floor without a full review of it's claims.

Tara Bitzan

3/27/2023 12:23:14 pm

Thank you for your comments! There hasn’t been an actuarial analysis yet, and many MN Chambers and the businesses they represent are concerned that costs will exceed projections. The Chamber has done an in-depth analysis on what this action would do to businesses and is doing exactly what you suggested in regards to trying to help create something that works for both businesses and employees. The MN Chamber has been meeting with the bill authors and supporters providing suggestions and amendments to make the bill more workable including the length of leave (24 weeks to 12); narrowing the scope of who is considered a family member to be consistent with FMLA, and also like FMLA, exempting employers with 50 or few employees. Here is a link to a Star Tribune article on this as well:
https://www.startribune.com/minnesota-businesses-fear-the-expense-and-expanse-of-paid-family-and-medical-leave-bill/600261977/

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