|
|
Dear Friends,
Democrats passed a $2.9 billion bill this week that will hurt employee wages and crush Minnesota’s job creators, especially our small Main Street employers. We have a $17.5 billion surplus, yet Democrats continue their spending spree. This time, they passed a paid family leave bill that contains more one-size-fits-all mandates that will crush every small business, nonprofit, city, county, and school district in our state.
Troubling provisions include:
-
A new 0.7% payroll tax which will hit both employers and employees. Studies show that workers ultimately pay for these tax increases through lower wages. The Minnesota Chamber of Commerce says that 80% of their members already provide paid family leave. This bill threatens worker benefits, and employees may end up with a worse paid family leave program than the one their employer currently offers.
-
Expands bureaucracy with 400 new FTEs to start, implement, and administrate this program. It will take years of development and will require a brand-new IT system to manage the program – similar to MNLARS or MNsure.
We need to be supporting families. The best way of doing that is helping job creators provide this kind of benefit to their workers, not by expanding our bureaucracy. Republicans created an alternative plan – the MN Family and Medical Leave Insurance Program (MN FaMLI) – that would do just that. Our plan includes:
- Benefits will be available to Minnesotans on January 1st, 2024—a full 18 months before Democrats’ bill.
- MN FaMLI offers a small business tax credit to incentivize employers to join the plan.
- Minnesotans may opt-in to the program for $5/week if employer does not join.
- Employees that are satisfied with current benefits offered by their employers can keep them without being forced onto a government-run program.
- MN FaMLI private option will be backed by an insurance company, so taxpayers will not be expected to cover the costs of program shortfalls or losses.
- MN FaMLI allows for flexibility that fits the needs of both the employer and employee, with no new taxes and mandates.
Our proposal offers the affordability and flexibility that will help job creators provide their workers with family leave benefits. More one-size-fits-all mandates will just create more headaches for both employees and employers. As this bill moves forward, I hope meaningful changes are made to support families and job providers.
|
|
Please Contact Me
I encourage you to please contact me with any questions or input by phone at 651-296-4231 or by email at rep.peggy.scott@house.mn.
|
|
 |
|
/RepPeggyScott
|
|
335 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
Saint Paul, MN 55155
ph. 651.296.4231 |
|
|
|
