|
A New Mandate Is Coming January 1—And Minnesotans Deserve to Know the Truth About PFML
Minnesota’s Paid Family and Medical Leave (PFML) program officially rolls out on January 1, 2026. The Minnesota Chamber of Commerce has put together a detailed toolkit to help employers navigate the new mandate, and I strongly encourage business owners to use it. You deserve to be as prepared as possible.
But preparation is not the same as approval. And I want to speak clearly and honestly about why I opposed this law and why so many Minnesotans feel blindsided by what’s about to hit them.
PFML was pushed through in 2023 during the Democrat trifecta. Not a single Republican in the House or Senate voted for it—not because we oppose families, but because we know the difference between policies that help Minnesotans and policies that simply sound helpful while creating lasting harm.
And PFML, as written, will harm Minnesotans.
This law brings with it a brand-new payroll tax on every worker and every employer. When the bill passed, we were told the payroll tax would be 0.7%. Earlier this year, that number jumped to 0.88%—a 25% increase before the program had even begun. State analysts expect it to generate roughly $1.7 billion a year.
That’s a tax hike. There’s no softer way to say it.
And while large corporations can absorb these costs, Minnesota’s small businesses—the backbone of our communities—will feel this pressure the most. A café with ten employees isn’t operating with the same buffer as a Fortune 500 company. Losing a worker for up to 20 weeks is a crisis, not a minor staffing hiccup. The state offers small grants for temporary replacements, but these grants can’t be used to cover the actual financial strain of keeping the lights on, the doors open, and the payroll met.
Worse yet, small businesses will actually subsidize the program. Data shows that employees at small businesses take significantly less leave than workers at large corporations. That means small employers will pay into a system far more than they will ever draw from it.
Then there’s the issue of abuse. PFML allows up to 20 weeks of leave a year and expands “family” to include nearly anyone with whom the applicant has a personal relationship. You don’t have to look far to understand how enormously this opens the door to misuse.
And we all know what happens in government programs when misuse becomes widespread: costs rise. Taxes rise. Accountability plummets.
Let me be absolutely clear: Minnesotans believe in caring for family. We step up for parents, we rally around new babies, we help neighbors through illness. But we also believe in fairness, responsibility, and not saddling our workers with endless mandates from a government that refuses to acknowledge the burden it’s creating.
While PFML is the law of the land, I want our businesses to be prepared—not blindsided. The Chamber’s toolkit will help you understand your requirements, how the payroll tax works, what leave qualifies, and how to navigate reporting and compliance. I encourage every employer to read it closely and begin planning now.
And just as important: know that Republicans have been working on reforms from day one. This year alone, we introduced bills to delay the program, reduce the tax cap, limit leave weeks, expand seasonal exemptions, and give small businesses real solutions. We will continue fighting for common-sense policies that protect employees and employers.
Minnesota families deserve support—but not at the expense of job creators, school districts, and every worker who will see a new deduction on their paycheck starting in 2026.
I will keep fighting for a Minnesota where businesses can thrive, families are supported, and government remembers it works for the people—not the other way around.
And I won’t stop fighting for legislation that helps hardworking Minnesotans, not punishes them.
— Representative Nathan Nelson
|
