A coalition of Minnesota DFL legislators is proposing a bill that would ensure all employees in Minnesota have paid family and sick leave. The DFL proposal would establish a state insurance program which would offer employees in Minnesota up to 80% of their pay for up to 12 weeks a year for pregnancy or medical issues. It would also apply to employees who need leave to care for a sick family member or newborn child. Under the proposed plan, employers and employees would share the costs for the program. The program would be mandatory for employers and employees, however, employers who currently have paid family and sick leave policies that match or surpass the proposed state insurance plan would be exempt from the new law.
According to a study conducted by the University of Minnesota almost 136,000 employees would benefit from the program. It is estimated over $450 million in benefits would be paid out in one year. The Minnesota Chamber of Commerce although understanding of the program’s goal, objects to the plan because it would take away the flexibility currently available to employers.
Governor Dayton has already proposed a similar program for Minnesota State employees. California, New Jersey, and Rhode Island all have similar benefits.
This law would be a huge change for Minnesota employers. For many small employers it could be a financial hardship to require them to contribute to this type of benefit. I agree with the Minnesota Chamber of Commerce, it is a great idea in concept, but I’m not sure it is the best idea for Minnesota’s small entrepreneurial businesses.