Starting Jan. 1, Minnesota employers are required to provide their workers with paid family and medical leave. Below are answers to key questions as the deadline approaches.
What is the law?
Minnesota’s new mandatory paid leave policy allows workers to take up to 12 weeks of paid family leave to care for an ill or elderly loved one or 12 weeks of paid medical leave to recover from giving birth or a serious illness (for a maximum of 20 weeks combined).
How much does it cost?
The new law requires employees and employers to contribute to a new payroll tax. The tax will be pooled into an insurance fund, from which all leave claims will be paid.
Are there cost breaks for small firms?
Yes. For workplaces with more than 30 workers, the payroll tax or premium rate will be 0.88%. It is 0.66% for smaller firms. The premiums will be split between employees and their employers. The employee portion will be deducted from worker paychecks.
Does a worker on leave get paid their full paycheck?
No. Workers on leave will be compensated 55% to 90% of their full paycheck. The amount received depends on the size of the worker’s weekly wage. For more information go to: https://mn.gov/deed/paidleave/employers/premiums/
Who pays when an employee requests time off?
Many claims that arise will be paid from an insurance pool that will be managed just like (and as part of) the state’s unemployment insurance program. So when paid leave claims are made, “it’s not the small business that has to pay the worker’s leave,” it’s the insurer who pays, Department of Employment and Economic Development officials said.
Employers can also choose a private insurer to manage the benefit instead of the public option.
Where do I go if I still have questions?
There are many resources where employers and employees can go for help. Below are a few.
What to know about Minnesota’s paid family leave
