Legislative Update
Last session, the Democrats enacted three substantial and controversial bills that affect every job creator and worker in Minnesota: Paid Family and Medical Leave (PFML); Earned Sick and Safe Time (ESST); and Unpaid Parenting and Pregnancy Leave (Unpaid Leave).
Paid Family and Medical Leave
Last session, Democrats passed Paid Family and Medical Leave (PFML), which pays eligible employees for 12-20 weeks per year for time off to deal with a serious health condition for either themselves or a family member. The employer payroll tax begins on January 1, 2026 and applies to virtually every job creator in the state.
In the first three years, the estimated state cost is $4.42 billion, which is $628 million more than the Democrats initially planned on. It also establishes a brand new government office and government-administered insurance program with a brand new IT system and 400 new full time employees.
ESST
Earned sick and safe time (ESST) that mandated that all employees earn one paid hour of leave for every 30 hours worked, up to 48 hours a year. This program also applies to virtually every employer, and burdens job creators for HR costs, replacement workers and training, and record keeping.
Unpaid Leave
Minnesota eliminated small employer exemptions for unpaid leave last session. All job creators must now allow for 12 weeks of unpaid leave for pregnancy, birth, or adoption. An additional 16 hours of leave during the school year is provided for employees to attend conferences or classroom activities if it can’t be scheduled during non-work hours.
I've heard from many that this will hit our local small businesses hard, and even put some of them out of business. The new legislative session begins February 12, and I will be working hard this session to mitigate the harm these laws will bring to small businesses across Minnesota.
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