
One of the bills that has been getting significant attention this year at the Capitol is paid family and medical leave. What is this proposal? It would create a new, mandatory 24 week paid leave program for ALL Minnesota employers and employees. The program, as currently presented, would begin taking effect in 2025, with implementation starting yet this year.
What’s in the proposal?
- Employers will be charged a 0.7% payroll tax to fund the program. There is no cap on the payroll tax, meaning if costs for the program exceed the amount collected, the state will raise the tax. Employers may “charge back” employees for up to 50% of the payroll tax, but must do so under proportion, contract, or wage requirements.