1.1 	A bill for an act
1.2 	relating to employment; creating a family and medical benefit insurance program; 
1.3 	requiring leave from employment under certain circumstances; allowing substitution 
1.4 	of a private plan; prohibiting retaliation; classifying data; authorizing expedited 
1.5 	rulemaking; transferring money; appropriating money;amending Minnesota 
1.6 	Statutes 2022, sections 13.719, by adding a subdivision; 62A.01, subdivision 1; 
1.7 	177.27, subdivision 4; 181.032; 256B.0659, subdivision 18; 256B.85, subdivisions 
1.8 	13, 13a; 256J.561, by adding a subdivision; 256J.95, subdivisions 3, 11; 256P.01, 
1.9 	subdivision 3; 268.19, subdivision 1; proposing coding for new law as Minnesota 
1.10 	Statutes, chapter 268B.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	ARTICLE 1
1.13 	FAMILY AND MEDICAL BENEFITS

1.14 	Section 1. Minnesota Statutes 2022, section 13.719, is amended by adding a subdivision 
1.15 	to read:
1.16 		Subd. 7.Family and medical insurance data. (a) For the purposes of this subdivision, 
1.17 	the terms used have the meanings given them in section 268B.01.
1.18 	(b) Data on applicants, family members, or employers under chapter 268B are private 
1.19 	or nonpublic data, provided that the department may share data collected from applicants 
1.20 	with employers or health care providers to the extent necessary to meet the requirements 
1.21 	of chapter 268B or other applicable law.
1.22 	(c) The department and the Department of Labor and Industry may share data classified 
1.23 	under paragraph (b) to the extent necessary to meet the requirements of chapter 268B or 
1.24 	the Department of Labor and Industry's enforcement authority over chapter 268B, as provided 
1.25 	in section 177.27.

2.1 	EFFECTIVE DATE. This section is effective July 1, 2023.

2.2 	Sec. 2. Minnesota Statutes 2022, section 62A.01, subdivision 1, is amended to read:
2.3 		Subdivision 1.Definition. The term "policy of accident and sickness insurance" as used 
2.4 	herein includes any policy covering the kind of insurance described in section 60A.06, 
2.5 	subdivision 1, clause (5)(a), or the paid family and medical leave benefits as described in 
2.6 	section 268B.10.

2.7 	Sec. 3. Minnesota Statutes 2022, section 177.27, subdivision 4, is amended to read:
2.8 		Subd. 4.Compliance orders. The commissioner may issue an order requiring an 
2.9 	employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032, 
2.10 	181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.172, paragraph (a) or (d), 181.275, 
2.11 	subdivision 2a, 181.722, 181.79, and 181.939 to 181.943, 268B.09, subdivisions 1 to 6, and 
2.12 	268B.14, subdivision 3, or with any rule promulgated under section 177.28. The 
2.13 	commissioner shall issue an order requiring an employer to comply with sections 177.41 
2.14 	to 177.435 if the violation is repeated. For purposes of this subdivision only, a violation is 
2.15 	repeated if at any time during the two years that preceded the date of violation, the 
2.16 	commissioner issued an order to the employer for violation of sections 177.41 to 177.435 
2.17 	and the order is final or the commissioner and the employer have entered into a settlement 
2.18 	agreement that required the employer to pay back wages that were required by sections 
2.19 	177.41 to 177.435. The department shall serve the order upon the employer or the employer's 
2.20 	authorized representative in person or by certified mail at the employer's place of business. 
2.21 	An employer who wishes to contest the order must file written notice of objection to the 
2.22 	order with the commissioner within 15 calendar days after being served with the order. A 
2.23 	contested case proceeding must then be held in accordance with sections 14.57 to 14.69. 
2.24 	If, within 15 calendar days after being served with the order, the employer fails to file a 
2.25 	written notice of objection with the commissioner, the order becomes a final order of the 
2.26 	commissioner.

2.27 	EFFECTIVE DATE. This section is effective July 1, 2023.

2.28 	Sec. 4. Minnesota Statutes 2022, section 181.032, is amended to read:
2.29 	181.032 REQUIRED STATEMENT OF EARNINGS BY EMPLOYER; NOTICE 
2.30 	TO EMPLOYEE.
2.31 	(a) At the end of each pay period, the employer shall provide each employee an earnings 
2.32 	statement, either in writing or by electronic means, covering that pay period. An employer 
3.1 	who chooses to provide an earnings statement by electronic means must provide employee 
3.2 	access to an employer-owned computer during an employee's regular working hours to 
3.3 	review and print earnings statements, and must make statements available for review or 
3.4 	printing for a period of three years.
3.5 	(b) The earnings statement may be in any form determined by the employer but must 
3.6 	include:
3.7 	(1) the name of the employee;
3.8 	(2) the rate or rates of pay and basis thereof, including whether the employee is paid by 
3.9 	hour, shift, day, week, salary, piece, commission, or other method;
3.10 	(3) allowances, if any, claimed pursuant to permitted meals and lodging;
3.11 	(4) the total number of hours worked by the employee unless exempt from chapter 177;
3.12 	(5) the total amount of gross pay earned by the employee during that period;
3.13 	(6) a list of deductions made from the employee's pay;
3.14 	(7) any amount deducted by the employer under section 268B.14, subdivision 3, and 
3.15 	the amount paid by the employer based on the employee's wages under section 268B.14, 
3.16 	subdivision 1;
3.17 	(7) (8) the net amount of pay after all deductions are made;
3.18 	(8) (9) the date on which the pay period ends;
3.19 	(9) (10) the legal name of the employer and the operating name of the employer if 
3.20 	different from the legal name;
3.21 	(10) (11) the physical address of the employer's main office or principal place of business, 
3.22 	and a mailing address if different; and
3.23 	(11) (12) the telephone number of the employer.
3.24 	(c) An employer must provide earnings statements to an employee in writing, rather 
3.25 	than by electronic means, if the employer has received at least 24 hours notice from an 
3.26 	employee that the employee would like to receive earnings statements in written form. Once 
3.27 	an employer has received notice from an employee that the employee would like to receive 
3.28 	earnings statements in written form, the employer must comply with that request on an 
3.29 	ongoing basis.
3.30 	(d) At the start of employment, an employer shall provide each employee a written notice 
3.31 	containing the following information:
4.1 	(1) the rate or rates of pay and basis thereof, including whether the employee is paid by 
4.2 	the hour, shift, day, week, salary, piece, commission, or other method, and the specific 
4.3 	application of any additional rates;
4.4 	(2) allowances, if any, claimed pursuant to permitted meals and lodging;
4.5 	(3) paid vacation, sick time, or other paid time-off accruals and terms of use;
4.6 	(4) the employee's employment status and whether the employee is exempt from minimum 
4.7 	wage, overtime, and other provisions of chapter 177, and on what basis;
4.8 	(5) a list of deductions that may be made from the employee's pay;
4.9 	(6) the number of days in the pay period, the regularly scheduled pay day, and the pay 
4.10 	day on which the employee will receive the first payment of wages earned;
4.11 	(7) the legal name of the employer and the operating name of the employer if different 
4.12 	from the legal name;
4.13 	(8) the physical address of the employer's main office or principal place of business, and 
4.14 	a mailing address if different; and
4.15 	(9) the telephone number of the employer.
4.16 	(e) The employer must keep a copy of the notice under paragraph (d) signed by each 
4.17 	employee acknowledging receipt of the notice. The notice must be provided to each employee 
4.18 	in English. The English version of the notice must include text provided by the commissioner 
4.19 	that informs employees that they may request, by indicating on the form, the notice be 
4.20 	provided in a particular language. If requested, the employer shall provide the notice in the 
4.21 	language requested by the employee. The commissioner shall make available to employers 
4.22 	the text to be included in the English version of the notice required by this section and assist 
4.23 	employers with translation of the notice in the languages requested by their employees.
4.24 	(f) An employer must provide the employee any written changes to the information 
4.25 	contained in the notice under paragraph (d) prior to the date the changes take effect.

4.26 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
4.27 	2025.

4.28 	Sec. 5. Minnesota Statutes 2022, section 256B.0659, subdivision 18, is amended to read:
4.29 		Subd. 18.Personal care assistance choice option; generally. (a) The commissioner 
4.30 	may allow a recipient of personal care assistance services to use a fiscal intermediary to 
4.31 	assist the recipient in paying and accounting for medically necessary covered personal care 
5.1 	assistance services. Unless otherwise provided in this section, all other statutory and 
5.2 	regulatory provisions relating to personal care assistance services apply to a recipient using 
5.3 	the personal care assistance choice option.
5.4 	(b) Personal care assistance choice is an option of the personal care assistance program 
5.5 	that allows the recipient who receives personal care assistance services to be responsible 
5.6 	for the hiring, training, scheduling, and firing of personal care assistants according to the 
5.7 	terms of the written agreement with the personal care assistance choice agency required 
5.8 	under subdivision 20, paragraph (a). This program offers greater control and choice for the 
5.9 	recipient in who provides the personal care assistance service and when the service is 
5.10 	scheduled. The recipient or the recipient's responsible party must choose a personal care 
5.11 	assistance choice provider agency as a fiscal intermediary. This personal care assistance 
5.12 	choice provider agency manages payroll, invoices the state, is responsible for all 
5.13 	payroll-related taxes and insurance, including premiums for family and medical benefit 
5.14 	insurance, and is responsible for providing the consumer training and support in managing 
5.15 	the recipient's personal care assistance services.

5.16 	Sec. 6. Minnesota Statutes 2022, section 256B.85, subdivision 13, is amended to read:
5.17 		Subd. 13.Budget model. (a) Under the budget model participants exercise responsibility 
5.18 	and control over the services and supports described and budgeted within the CFSS service 
5.19 	delivery plan. Participants must use services specified in subdivision 13a provided by an 
5.20 	FMS provider. Under this model, participants may use their approved service budget 
5.21 	allocation to:
5.22 	(1) directly employ support workers, and pay wages, federal and state payroll taxes, and 
5.23 	premiums for workers' compensation, liability, family and medical benefit insurance, and 
5.24 	health insurance coverage; and
5.25 	(2) obtain supports and goods as defined in subdivision 7.
5.26 	(b) Participants who are unable to fulfill any of the functions listed in paragraph (a) may 
5.27 	authorize a legal representative or participant's representative to do so on their behalf.
5.28 	(c) If two or more participants using the budget model live in the same household and 
5.29 	have the same support worker, the participants must use the same FMS provider.
5.30 	(d) If the FMS provider advises that there is a joint employer in the budget model, all 
5.31 	participants associated with that joint employer must use the same FMS provider.
6.1 	(e) The commissioner shall disenroll or exclude participants from the budget model and 
6.2 	transfer them to the agency-provider model under, but not limited to, the following 
6.3 	circumstances:
6.4 	(1) when a participant has been restricted by the Minnesota restricted recipient program, 
6.5 	in which case the participant may be excluded for a specified time period under Minnesota 
6.6 	Rules, parts 9505.2160 to 9505.2245;
6.7 	(2) when a participant exits the budget model during the participant's service plan year. 
6.8 	Upon transfer, the participant shall not access the budget model for the remainder of that 
6.9 	service plan year; or
6.10 	(3) when the department determines that the participant or participant's representative 
6.11 	or legal representative is unable to fulfill the responsibilities under the budget model, as 
6.12 	specified in subdivision 14.
6.13 	(f) A participant may appeal in writing to the department under section 256.045, 
6.14 	subdivision 3, to contest the department's decision under paragraph (e), clause (3), to disenroll 
6.15 	or exclude the participant from the budget model.

6.16 	Sec. 7. Minnesota Statutes 2022, section 256B.85, subdivision 13a, is amended to read:
6.17 		Subd. 13a.Financial management services. (a) Services provided by an FMS provider 
6.18 	include but are not limited to: filing and payment of federal and state payroll taxes and 
6.19 	premiums on behalf of the participant; initiating and complying with background study 
6.20 	requirements under chapter 245C and maintaining documentation of background study 
6.21 	requests and results; billing for approved CFSS services with authorized funds; monitoring 
6.22 	expenditures; accounting for and disbursing CFSS funds; providing assistance in obtaining 
6.23 	and filing for liability, workers' compensation, family and medical benefit insurance, and 
6.24 	unemployment coverage; and providing participant instruction and technical assistance to 
6.25 	the participant in fulfilling employer-related requirements in accordance with section 3504 
6.26 	of the Internal Revenue Code and related regulations and interpretations, including Code 
6.27 	of Federal Regulations, title 26, section 31.3504-1.
6.28 	(b) Agency-provider services shall not be provided by the FMS provider.
6.29 	(c) The FMS provider shall provide service functions as determined by the commissioner 
6.30 	for budget model participants that include but are not limited to:
6.31 	(1) assistance with the development of the detailed budget for expenditures portion of 
6.32 	the CFSS service delivery plan as requested by the consultation services provider or 
6.33 	participant;
7.1 	(2) data recording and reporting of participant spending;
7.2 	(3) other duties established by the department, including with respect to providing 
7.3 	assistance to the participant, participant's representative, or legal representative in performing 
7.4 	employer responsibilities regarding support workers. The support worker shall not be 
7.5 	considered the employee of the FMS provider; and
7.6 	(4) billing, payment, and accounting of approved expenditures for goods.
7.7 	(d) The FMS provider shall obtain an assurance statement from the participant employer 
7.8 	agreeing to follow state and federal regulations and CFSS policies regarding employment 
7.9 	of support workers.
7.10 	(e) The FMS provider shall:
7.11 	(1) not limit or restrict the participant's choice of service or support providers or service 
7.12 	delivery models consistent with any applicable state and federal requirements;
7.13 	(2) provide the participant, consultation services provider, and case manager or care 
7.14 	coordinator, if applicable, with a monthly written summary of the spending for services and 
7.15 	supports that were billed against the spending budget;
7.16 	(3) be knowledgeable of state and federal employment regulations, including those under 
7.17 	the Fair Labor Standards Act of 1938, and comply with the requirements under chapter 
7.18 	268B and section 3504 of the Internal Revenue Code and related regulations and 
7.19 	interpretations, including Code of Federal Regulations, title 26, section 31.3504-1, regarding 
7.20 	agency employer tax liability for vendor fiscal/employer agent, and any requirements 
7.21 	necessary to process employer and employee deductions, provide appropriate and timely 
7.22 	submission of employer tax liabilities, and maintain documentation to support medical 
7.23 	assistance claims;
7.24 	(4) have current and adequate liability insurance and bonding and sufficient cash flow 
7.25 	as determined by the commissioner and have on staff or under contract a certified public 
7.26 	accountant or an individual with a baccalaureate degree in accounting;
7.27 	(5) assume fiscal accountability for state funds designated for the program and be held 
7.28 	liable for any overpayments or violations of applicable statutes or rules, including but not 
7.29 	limited to the Minnesota False Claims Act, chapter 15C;
7.30 	(6) maintain documentation of receipts, invoices, and bills to track all services and 
7.31 	supports expenditures for any goods purchased and maintain time records of support workers. 
7.32 	The documentation and time records must be maintained for a minimum of five years from 
7.33 	the claim date and be available for audit or review upon request by the commissioner. Claims 
8.1 	submitted by the FMS provider to the commissioner for payment must correspond with 
8.2 	services, amounts, and time periods as authorized in the participant's service budget and 
8.3 	service plan and must contain specific identifying information as determined by the 
8.4 	commissioner; and
8.5 	(7) provide written notice to the participant or the participant's representative at least 30 
8.6 	calendar days before a proposed service termination becomes effective.
8.7 	(f) The commissioner shall:
8.8 	(1) establish rates and payment methodology for the FMS provider;
8.9 	(2) identify a process to ensure quality and performance standards for the FMS provider 
8.10 	and ensure statewide access to FMS providers; and
8.11 	(3) establish a uniform protocol for delivering and administering CFSS services to be 
8.12 	used by eligible FMS providers.

8.13 	Sec. 8. Minnesota Statutes 2022, section 268.19, subdivision 1, is amended to read:
8.14 		Subdivision 1.Use of data. (a) Except as provided by this section, data gathered from 
8.15 	any person under the administration of the Minnesota Unemployment Insurance Law are 
8.16 	private data on individuals or nonpublic data not on individuals as defined in section 13.02, 
8.17 	subdivisions 9 and 12, and may not be disclosed except according to a district court order 
8.18 	or section 13.05. A subpoena is not considered a district court order. These data may be 
8.19 	disseminated to and used by the following agencies without the consent of the subject of 
8.20 	the data:
8.21 	(1) state and federal agencies specifically authorized access to the data by state or federal 
8.22 	law;
8.23 	(2) any agency of any other state or any federal agency charged with the administration 
8.24 	of an unemployment insurance program;
8.25 	(3) any agency responsible for the maintenance of a system of public employment offices 
8.26 	for the purpose of assisting individuals in obtaining employment;
8.27 	(4) the public authority responsible for child support in Minnesota or any other state in 
8.28 	accordance with section 256.978;
8.29 	(5) human rights agencies within Minnesota that have enforcement powers;
8.30 	(6) the Department of Revenue to the extent necessary for its duties under Minnesota 
8.31 	laws;
9.1 	(7) public and private agencies responsible for administering publicly financed assistance 
9.2 	programs for the purpose of monitoring the eligibility of the program's recipients;
9.3 	(8) the Department of Labor and Industry and the Commerce Fraud Bureau in the 
9.4 	Department of Commerce for uses consistent with the administration of their duties under 
9.5 	Minnesota law;
9.6 	(9) the Department of Human Services and the Office of Inspector General and its agents 
9.7 	within the Department of Human Services, including county fraud investigators, for 
9.8 	investigations related to recipient or provider fraud and employees of providers when the 
9.9 	provider is suspected of committing public assistance fraud;
9.10 	(10) local and state welfare agencies for monitoring the eligibility of the data subject 
9.11 	for assistance programs, or for any employment or training program administered by those 
9.12 	agencies, whether alone, in combination with another welfare agency, or in conjunction 
9.13 	with the department or to monitor and evaluate the statewide Minnesota family investment 
9.14 	program and other cash assistance programs, the Supplemental Nutrition Assistance Program, 
9.15 	and the Supplemental Nutrition Assistance Program Employment and Training program by 
9.16 	providing data on recipients and former recipients of Supplemental Nutrition Assistance 
9.17 	Program (SNAP) benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child 
9.18 	care assistance under chapter 119B, or medical programs under chapter 256B or 256L or 
9.19 	formerly codified under chapter 256D;
9.20 	(11) local and state welfare agencies for the purpose of identifying employment, wages, 
9.21 	and other information to assist in the collection of an overpayment debt in an assistance 
9.22 	program;
9.23 	(12) local, state, and federal law enforcement agencies for the purpose of ascertaining 
9.24 	the last known address and employment location of an individual who is the subject of a 
9.25 	criminal investigation;
9.26 	(13) the United States Immigration and Customs Enforcement has access to data on 
9.27 	specific individuals and specific employers provided the specific individual or specific 
9.28 	employer is the subject of an investigation by that agency;
9.29 	(14) the Department of Health for the purposes of epidemiologic investigations;
9.30 	(15) the Department of Corrections for the purposes of case planning and internal research 
9.31 	for preprobation, probation, and postprobation employment tracking of offenders sentenced 
9.32 	to probation and preconfinement and postconfinement employment tracking of committed 
9.33 	offenders;
10.1 	(16) the state auditor to the extent necessary to conduct audits of job opportunity building 
10.2 	zones as required under section 469.3201; and
10.3 	(17) the Office of Higher Education for purposes of supporting program improvement, 
10.4 	system evaluation, and research initiatives including the Statewide Longitudinal Education 
10.5 	Data System; and
10.6 	(18) the Family and Medical Benefits Division of the Department of Employment and 
10.7 	Economic Development to be used as necessary to administer chapter 268B..
10.8 	(b) Data on individuals and employers that are collected, maintained, or used by the 
10.9 	department in an investigation under section 268.182 are confidential as to data on individuals 
10.10 	and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3 
10.11 	and 13, and must not be disclosed except under statute or district court order or to a party 
10.12 	named in a criminal proceeding, administrative or judicial, for preparation of a defense.
10.13 	(c) Data gathered by the department in the administration of the Minnesota unemployment 
10.14 	insurance program must not be made the subject or the basis for any suit in any civil 
10.15 	proceedings, administrative or judicial, unless the action is initiated by the department.

10.16 	EFFECTIVE DATE. This section is effective July 1, 2023.

10.17 	Sec. 9. [268B.01] DEFINITIONS.
10.18 		Subdivision 1.Scope. For the purposes of this chapter, the terms defined in this section 
10.19 	have the meanings given.
10.20 		Subd. 2.Applicant. "Applicant" means an individual applying for leave with benefits 
10.21 	under this chapter.
10.22 		Subd. 3.Applicant's average weekly wage. "Applicant's average weekly wage" means 
10.23 	an amount equal to the applicant's high quarter wage credits divided by 13.
10.24 		Subd. 4.Base period. (a) "Base period," unless otherwise provided in this subdivision, 
10.25 	means the most recent four completed calendar quarters before the effective date of an 
10.26 	applicant's application for family or medical leave benefits if the application has an effective 
10.27 	date occurring after the month following the most recent completed calendar quarter. The 
10.28 	base period under this paragraph is as follows:

10.29
10.30
10.31	If the application for family or medical leave 
benefits is effective on or between these 
dates:
	The base period is the prior:
	
10.32	February 1 to March 31
	January 1 to December 31
	
10.33	May 1 to June 30
	April 1 to March 31
	
11.1	August 1 to September 30
	July 1 to June 30
	
11.2	November 1 to December 31
	October 1 to September 30
	
11.3 	(b) If an application for family or medical leave benefits has an effective date that is 
11.4 	during the month following the most recent completed calendar quarter, then the base period 
11.5 	is the first four of the most recent five completed calendar quarters before the effective date 
11.6 	of an applicant's application for family or medical leave benefits. The base period under 
11.7 	this paragraph is as follows:

11.8
11.911.10
	If the application for family or medical leave 
benefits is effective on or between these 
dates:
	The base period is the prior:
	
11.11	January 1 to January 31
	October 1 to September 30
	
11.12	April 1 to April 30
	January 1 to December 31
	
11.13	July 1 to July 31
	April 1 to March 31
	
11.14	October 1 to October 31
	July 1 to June 30
	
11.15 	(c) Regardless of paragraph (a), a base period of the first four of the most recent five 
11.16 	completed calendar quarters must be used if the applicant would have more wage credits 
11.17 	under that base period than under a base period of the four most recent completed calendar 
11.18 	quarters.
11.19 	(d) If the applicant has insufficient wage credits to establish a benefit account under a 
11.20 	base period of the four most recent completed calendar quarters, or a base period of the first 
11.21 	four of the most recent five completed calendar quarters, but during either base period the 
11.22 	applicant received workers' compensation for temporary disability under chapter 176 or a 
11.23 	similar federal law or similar law of another state, or if the applicant whose own serious 
11.24 	illness caused a loss of work for which the applicant received compensation for loss of 
11.25 	wages from some other source, the applicant may request a base period as follows:
11.26 	(1) if an applicant was compensated for a loss of work of seven to 13 weeks during a 
11.27 	base period referred to in paragraph (a) or (b), then the base period is the first four of the 
11.28 	most recent six completed calendar quarters before the effective date of the application for 
11.29 	family or medical leave benefits;
11.30 	(2) if an applicant was compensated for a loss of work of 14 to 26 weeks during a base 
11.31 	period referred to in paragraph (a) or (b), then the base period is the first four of the most 
11.32 	recent seven completed calendar quarters before the effective date of the application for 
11.33 	family or medical leave benefits;
11.34 	(3) if an applicant was compensated for a loss of work of 27 to 39 weeks during a base 
11.35 	period referred to in paragraph (a) or (b), then the base period is the first four of the most 
12.1 	recent eight completed calendar quarters before the effective date of the application for 
12.2 	family or medical leave benefits; and
12.3 	(4) if an applicant was compensated for a loss of work of 40 to 52 weeks during a base 
12.4 	period referred to in paragraph (a) or (b), then the base period is the first four of the most 
12.5 	recent nine completed calendar quarters before the effective date of the application for 
12.6 	family or medical leave benefits.
12.7 	(e) For an applicant under a private plan as provided in section 268B.10, the base period 
12.8 	is those most recent four quarters in which wage credits were earned with the current 
12.9 	employer as provided by the current employer. If an employer does not have four quarters 
12.10 	of wage detail information, the employer must accept an employee's certification of wage 
12.11 	credits, based on the employee's records. If the employee does not provide certification of 
12.12 	additional wage credits, the employer may use a base period that consists of all available 
12.13 	quarters.
12.14 		Subd. 5.Benefit. "Benefit" or "benefits" means monetary payments under this chapter 
12.15 	associated with qualifying bonding, family care, pregnancy, serious health condition, 
12.16 	qualifying exigency, or safety leave events, unless otherwise indicated by context.
12.17 		Subd. 6.Benefit account. "Benefit account" means a benefit account established under 
12.18 	section 268B.04.
12.19 		Subd. 7.Benefit year. (a) Except as provided in paragraph (b), "benefit year" means 
12.20 	the period of 52 calendar weeks beginning the date a benefit account under section 268B.04 
12.21 	is effective. For a benefit account established effective any January 1, April 1, July 1, or 
12.22 	October 1, the benefit year will be a period of 53 calendar weeks.
12.23 	(b) For a private plan under section 268B.10, "benefit year" means:
12.24 	(1) a calendar year;
12.25 	(2) any fixed 12-month period, such as a fiscal year or a 12-month period measured 
12.26 	forward from an employee's first date of employment;
12.27 	(3) a 12-month period measured forward from an employee's first day of leave taken; 
12.28 	or
12.29 	(4) a rolling 12-month period measured backward from an employee's first day of leave 
12.30 	taken.
12.31 	Employers are required to notify employees of their benefit year within 30 days of the 
12.32 	private plan approval and first day of employment.
13.1 		Subd. 8.Bonding. "Bonding" means time spent by an applicant who is a biological, 
13.2 	adoptive, or foster parent with a biological, adopted, or foster child in conjunction with the 
13.3 	child's birth, adoption, or placement.
13.4 		Subd. 9.Calendar day. "Calendar day" or "day" means a fixed 24-hour period 
13.5 	corresponding to a single calendar date.
13.6 		Subd. 10.Calendar quarter. "Calendar quarter" means the period of three consecutive 
13.7 	calendar months ending on March 31, June 30, September 30, or December 31.
13.8 		Subd. 11.Calendar week. "Calendar week" has the same meaning as "week" under 
13.9 	subdivision 46.
13.10 		Subd. 12.Commissioner. "Commissioner" means the commissioner of employment 
13.11 	and economic development, unless otherwise indicated by context.
13.12 		Subd. 13.Construction industry "Construction industry" means any construction, 
13.13 	reconstruction, building erection, alteration, remodel, repair, renovation, rehabilitation, 
13.14 	excavation, or demolition of any building, structure, facility utility, power plant, sewer, 
13.15 	dam, highway, road, street, airport, bridge, or other improvement.
13.16 		Subd. 14.Covered active duty. "Covered active duty" has the meaning given in United 
13.17 	States Code, title 29, section 2611(14).
13.18 		Subd. 15.Covered employment. (a) "Covered employment" means performing services 
13.19 	of whatever nature, unlimited by the relationship of master and servant as known to the 
13.20 	common law, or any other legal relationship performed for wages or under any contract 
13.21 	calling for the performance of services, written or oral, express or implied.
13.22 	(b) For the purposes of this chapter, covered employment means an employee's entire 
13.23 	employment during a calendar quarter if:
13.24 	(1) 50 percent or more of the employment during the calendar quarter is performed in 
13.25 	Minnesota;
13.26 	(2) 50 percent or more of the employment during the calendar quarter is not performed 
13.27 	in Minnesota or any other state, or Canada, but some of the employment is performed in 
13.28 	Minnesota and the employee's residence is in Minnesota during 50 percent or more of the 
13.29 	calendar quarter; or
13.30 	(3) 50 percent or more of the employment during the calendar quarter is not performed 
13.31 	in Minnesota or any other state, or Canada, but the place from where the employee's 
13.32 	employment is controlled and directed is based in Minnesota.
14.1 	(c) "Covered employment" does not include:
14.2 	(1) a self-employed individual; or
14.3 	(2) an independent contractor.
14.4 		Subd. 16.Department. "Department" means the Department of Employment and 
14.5 	Economic Development, unless otherwise indicated by context.
14.6 		Subd. 17.Employee. (a) "Employee" means an individual who performs services of 
14.7 	whatever nature for an employer.
14.8 	(b) Employee does not include employees of the United States of America, self-employed 
14.9 	individuals, or independent contractors.
14.10 		Subd. 18.Employer. (a) "Employer" means:
14.11 	(1) any person, type of organization, or entity, including any partnership, association, 
14.12 	trust, estate, joint stock company, insurance company, limited liability company, or 
14.13 	corporation, whether domestic or foreign, or the receiver, trustee in bankruptcy, trustee, or 
14.14 	the legal representative of a deceased person, having any individual in covered employment;
14.15 	(2) the state, state agencies, Minnesota State Colleges and Universities, University of 
14.16 	Minnesota, and other statewide public systems; and
14.17 	(3) any municipality or local government entity, including but not limited to a county, 
14.18 	city, town, school district, Metropolitan Council, Metropolitan Airports Commission, housing 
14.19 	and redevelopment authority, port authority, economic development authority, sports facilities 
14.20 	authority, joint powers board or organization created under section 471.59, destination 
14.21 	medical center corporation, municipal corporation, quasimunicipal corporation, or other 
14.22 	political subdivision. An employer also includes charter schools.
14.23 	(b) Employer does not include:
14.24 	(1) the United States of America; or
14.25 	(2) a self-employed individual who has elected and been approved for coverage under 
14.26 	section 268B.11 with regard to the self-employed individual's own coverage and benefits.
14.27 		Subd. 19.Estimated self-employment income. "Estimated self-employment income" 
14.28 	means a self-employed individual's average net earnings from self-employment in the two 
14.29 	most recent taxable years. For a self-employed individual who had net earnings from 
14.30 	self-employment in only one of the years, the individual's estimated self-employment income 
14.31 	equals the individual's net earnings from self-employment in the year in which the individual 
14.32 	had net earnings from self-employment.
15.1 		Subd. 20.Family and medical benefit insurance account. "Family and medical benefit 
15.2 	insurance account" means the family and medical benefit insurance account in the special 
15.3 	revenue fund in the state treasury under section 268B.02.
15.4 		Subd. 21.Family and medical benefit insurance enforcement account. "Family and 
15.5 	medical benefit insurance enforcement account" means the family and medical benefit 
15.6 	insurance enforcement account in the state treasury under section 268B.185.
15.7 		Subd. 22.Family benefit program. "Family benefit program" means the program 
15.8 	administered under this chapter for the collection of premiums and payment of benefits 
15.9 	related to family care, bonding, safety leave, and leave related to a qualifying exigency.
15.10 		Subd. 23.Family care. "Family care" means an applicant caring for a family member 
15.11 	with a serious health condition or caring for a family member who is a covered service 
15.12 	member.
15.13 		Subd. 24.Family member. (a) "Family member" means, with respect to an applicant:
15.14 	(1) a spouse or domestic partner;
15.15 	(2) a child, including a biological, adopted, or foster child, a stepchild, or a child to 
15.16 	whom the applicant stands in loco parentis, is a legal guardian, or is a de facto parent;
15.17 	(3) a parent or legal guardian of the applicant;
15.18 	(4) a sibling;
15.19 	(5) a grandchild;
15.20 	(6) a grandparent or spouse's grandparent;
15.21 	(7) a son-in-law or daughter-in-law; and
15.22 	(8) an individual who has a relationship with the applicant that creates an expectation 
15.23 	and reliance that the applicant care for the individual, whether or not the applicant and the 
15.24 	individual reside together.
15.25 	(b) For the purposes of this chapter, "grandchild" means a child of the applicant's child.
15.26 	(c) For the purposes of this chapter, "grandparent" means a parent of the applicant's 
15.27 	parent.
15.28 	(d) For the purposes of this chapter, "parent" means the biological, adoptive, de facto, 
15.29 	or foster parent, stepparent, or legal guardian of an applicant or the applicant's spouse, or 
15.30 	an individual who stood in loco parentis to an applicant when the applicant was a child.
15.31 		Subd. 25.Health care provider. "Health care provider" means:
16.1 	(1) an individual who is licensed, certified, or otherwise authorized under law to practice 
16.2 	in the individual's scope of practice as a physician, physician assistant, osteopath, surgeon, 
16.3 	podiatrist, advanced practice registered nurse, alcohol and drug counselor, as defined in 
16.4 	section 148F.01, subdivision 5, or mental health professional, as defined in section 245I.02, 
16.5 	subdivision 27; or
16.6 	(2) any other individual determined by the commissioner by rule, in accordance with 
16.7 	the rulemaking procedures in the Administrative Procedure Act, to be capable of providing 
16.8 	health care services.
16.9 		Subd. 26.High quarter. "High quarter" means the calendar quarter in an applicant's 
16.10 	base period with the highest amount of wage credits.
16.11 		Subd. 27.Incapacity. "Incapacity" means inability to perform regular work, attend 
16.12 	school, or fully perform other regular daily activities due to a serious health condition, 
16.13 	treatment therefore, or recovery therefrom.
16.14 		Subd. 28.Independent contractor. If there is an existing specific test or definition for 
16.15 	independent contractor in Minnesota statute or rule applicable to an occupation or sector 
16.16 	as of the date of enactment of this chapter, that test or definition shall apply to that occupation 
16.17 	or sector for purposes of this chapter. If there is not an existing test or definition as described, 
16.18 	the definition for independent contractor shall be as provided in Minnesota Rules, part 
16.19 	5200.0221.
16.20 		Subd. 29.Inpatient care. "Inpatient care" means an overnight stay in a hospital, hospice, 
16.21 	or residential medical care facility, including any period of incapacity, or any subsequent 
16.22 	treatment in connection with such inpatient care.
16.23 		Subd. 30.Maximum weekly benefit amount. "Maximum weekly benefit amount" 
16.24 	means the state's average weekly wage as calculated under section 268.035, subdivision 23.
16.25 		Subd. 31.Medical benefit program. "Medical benefit program" means the program 
16.26 	administered under this chapter for the collection of premiums and payment of benefits 
16.27 	related to an applicant's serious health condition or pregnancy.
16.28 		Subd. 32.Net earnings from self-employment. "Net earnings from self-employment" 
16.29 	has the meaning given in section 1402 of the Internal Revenue Code, as defined in section 
16.30 	290.01, subdivision 31.
16.31 		Subd. 33.Pregnancy. "Pregnancy" includes prenatal care or incapacity due to pregnancy 
16.32 	or recovery from childbirth, stillbirth, miscarriage, or related health conditions.
17.1 		Subd. 34.Qualifying exigency. (a) "Qualifying exigency" means a need arising out of 
17.2 	a military member's covered active duty service or notice of an impending call or order to 
17.3 	covered active duty in the United States armed forces, including providing for the care or 
17.4 	other needs of the family member's child or other dependent, making financial or legal 
17.5 	arrangements for the family member, attending counseling, attending military events or 
17.6 	ceremonies, spending time with the family member during a rest and recuperation leave or 
17.7 	following return from deployment, or making arrangements following the death of the 
17.8 	military member.
17.9 	(b) For the purposes of this chapter, a "military member" means a current or former 
17.10 	member of the United States armed forces, including a member of the National Guard or 
17.11 	reserves, who, except for a deceased military member, is a resident of the state and is a 
17.12 	family member of the applicant taking leave related to the qualifying exigency.
17.13 		Subd. 35.Safety leave. "Safety leave" means leave from work because of domestic 
17.14 	abuse, sexual assault, or stalking of the applicant or applicant's family member, provided 
17.15 	the leave is to:
17.16 	(1) seek medical attention related to the physical or psychological injury or disability 
17.17 	caused by domestic abuse, sexual assault, or stalking;
17.18 	(2) obtain services from a victim services organization;
17.19 	(3) obtain psychological or other counseling;
17.20 	(4) seek relocation due to the domestic abuse, sexual assault, or stalking; or
17.21 	(5) seek legal advice or take legal action, including preparing for or participating in any 
17.22 	civil or criminal legal proceeding related to, or resulting from, the domestic abuse, sexual 
17.23 	assault, or stalking.
17.24 		Subd. 36.Self-employed individual. "Self-employed individual" means a resident of 
17.25 	the state who, in one of the two taxable years preceding the current calendar year, derived 
17.26 	at least 5.3 percent of the state's average annual wage in net earnings from self-employment 
17.27 	from an entity other than an S corporation for the performance of services in this state.
17.28 		Subd. 37.Self-employment premium base. "Self-employment premium base" means 
17.29 	the lesser of:
17.30 	(1) a self-employed individual's estimated self-employment income for the calendar year 
17.31 	plus the individual's self-employment wages in the calendar year; or
18.1 	(2) the maximum earnings subject to the FICA Old-Age, Survivors, and Disability 
18.2 	Insurance tax in the taxable year.
18.3 		Subd. 38.Self-employment wages. "Self-employment wages" means the amount of 
18.4 	wages that a self-employed individual earned in the calendar year from an entity from which 
18.5 	the individual also received net earnings from self-employment.
18.6 		Subd. 39.Serious health condition. (a) "Serious health condition" means a physical or 
18.7 	mental illness, injury, impairment, condition, or substance use disorder that involves:
18.8 	(1) inpatient care in a hospital, hospice, or residential medical care facility, including 
18.9 	any period of incapacity; or
18.10 	(2) continuing treatment or supervision by a health care provider which includes any 
18.11 	one or more of the following:
18.12 	(i) a period of incapacity of more than three consecutive, full calendar days, and any 
18.13 	subsequent treatment or period of incapacity relating to the same condition, that also involves:
18.14 	(A) treatment two or more times, within 30 days of the first day of incapacity, unless 
18.15 	extenuating circumstances beyond the applicant's control prevent a follow-up visit from 
18.16 	occurring as planned, by a health care provider or by a provider of health care services under 
18.17 	orders of, or on referral by, a health care provider; or
18.18 	(B) treatment by a health care provider on at least one occasion that results in a regimen 
18.19 	of continuing treatment under the supervision of the health care provider;
18.20 	(ii) a period of incapacity due to pregnancy;
18.21 	(iii) a period of incapacity or treatment for a chronic health condition that:
18.22 	(A) requires periodic visits, defined as at least twice a year, for treatment by a health 
18.23 	care provider or under orders of, or on referral by, a health care provider;
18.24 	(B) continues over an extended period of time, including recurring episodes of a single 
18.25 	underlying condition; and
18.26 	(C) may cause episodic rather than continuing periods of incapacity;
18.27 	(iv) a period of incapacity which is permanent or long term due to a condition for which 
18.28 	treatment may not be effective. The applicant or family member must be under the continuing 
18.29 	supervision of, but need not be receiving active treatment by, a health care provider; or
19.1 	(v) a period of absence to receive multiple treatments, including any period of recovery 
19.2 	from the treatments, by a health care provider or by a provider of health care services under 
19.3 	orders of, or on referral by, a health care provider, for:
19.4 	(A) restorative surgery after an accident or other injury; or
19.5 	(B) a condition that would likely result in a period of incapacity of more than three 
19.6 	consecutive, full calendar days in the absence of medical intervention or treatment.
19.7 	(b) For the purposes of paragraph (a), clauses (1) and (2), treatment by a health care 
19.8 	provider means an in-person visit or telemedicine visit with a health care provider, or by a 
19.9 	provider of health care services under orders of, or on referral by, a health care provider.
19.10 	(c) For the purposes of paragraph (a), treatment includes but is not limited to examinations 
19.11 	to determine if a serious health condition exists and evaluations of the condition.
19.12 	(d) Absences attributable to incapacity under paragraph (a), clause (2), item (ii) or (iii), 
19.13 	qualify for leave under this chapter even if the applicant or the family member does not 
19.14 	receive treatment from a health care provider during the absence, and even if the absence 
19.15 	does not last more than three consecutive, full calendar days.
19.16 		Subd. 40.State's average weekly wage. "State's average weekly wage" means the 
19.17 	weekly wage calculated under section 268.035, subdivision 23.
19.18 		Subd. 41.Supplemental benefit payment. (a) "Supplemental benefit payment" means:
19.19 	(1) a payment made by an employer to an employee as salary continuation or as paid 
19.20 	time off. Such a payment must be in addition to any family or medical leave benefits the 
19.21 	employee is receiving under this chapter; and
19.22 	(2) a payment offered by an employer to an employee who is taking leave under this 
19.23 	chapter to supplement the family or medical leave benefits the employee is receiving.
19.24 	(b) Employers may, but are not required to, designate certain benefits including but not 
19.25 	limited to salary continuation, vacation leave, sick leave, or other paid time off as a 
19.26 	supplemental benefit payment.
19.27 	(c) Nothing in this chapter requires an employee to receive supplemental benefit 
19.28 	payments.
19.29 		Subd. 42.Taxable year. "Taxable year" has the meaning given in section 290.01, 
19.30 	subdivision 9.
19.31 		Subd. 43.Taxable wages. "Taxable wages" means those wages paid to an employee in 
19.32 	covered employment each calendar year up to an amount equal to the maximum wages 
20.1 	subject to premium in a calendar year, which is equal to the maximum earnings in that year 
20.2 	subject to the FICA Old-Age, Survivors, and Disability Insurance tax rounded to the nearest 
20.3 	$1,000.
20.4 		Subd. 44.Typical workweek. "Typical workweek" means:
20.5 	(1) for an hourly employee, the average number of hours worked per week by an 
20.6 	employee within the high quarter during the base year; or
20.7 	(2) 40 hours for a salaried employee, regardless of the number of hours the salaried 
20.8 	employee typically works.
20.9 		Subd. 45.Wage credits. "Wage credits" means the amount of wages paid within an 
20.10 	applicant's base period for covered employment, as defined in subdivision 13.
20.11 		Subd. 46.Wage detail report. "Wage detail report" means the report on each employee 
20.12 	in covered employment required from an employer on a calendar quarter basis under section 
20.13 	268B.12.
20.14 		Subd. 47.Wages. (a) "Wages" means all compensation for employment, including 
20.15 	commissions; bonuses, awards, and prizes; severance payments; standby pay; vacation and 
20.16 	holiday pay; back pay as of the date of payment; tips and gratuities paid to an employee by 
20.17 	a customer of an employer and accounted for by the employee to the employer; sickness 
20.18 	and accident disability payments, except as otherwise provided in this subdivision; and the 
20.19 	cash value of housing, utilities, meals, exchanges of services, and any other goods and 
20.20 	services provided to compensate an employee, except:
20.21 	(1) the amount of any payment made to, or on behalf of, an employee under a plan 
20.22 	established by an employer that makes provision for employees generally or for a class or 
20.23 	classes of employees, including any amount paid by an employer for insurance or annuities, 
20.24 	or into a plan, to provide for a payment, on account of (i) retirement, (ii) medical and 
20.25 	hospitalization expenses in connection with sickness or accident disability, or (iii) death;
20.26 	(2) the payment by an employer of the tax imposed upon an employee under United 
20.27 	States Code, title 26, section 3101 of the Federal Insurance Contribution Act, with respect 
20.28 	to compensation paid to an employee for domestic employment in a private household of 
20.29 	the employer or for agricultural employment;
20.30 	(3) any payment made to, or on behalf of, an employee or beneficiary (i) from or to a 
20.31 	trust described in United States Code, title 26, section 401(a) of the federal Internal Revenue 
20.32 	Code, that is exempt from tax under section 501(a) at the time of the payment unless the 
20.33 	payment is made to an employee of the trust as compensation for services as an employee 
21.1 	and not as a beneficiary of the trust, or (ii) under or to an annuity plan that, at the time of 
21.2 	the payment, is a plan described in section 403(a);
21.3 	(4) the value of any special discount or markdown allowed to an employee on goods 
21.4 	purchased from or services supplied by the employer where the purchases are optional and 
21.5 	do not constitute regular or systematic payment for services;
21.6 	(5) customary and reasonable directors' fees paid to individuals who are not otherwise 
21.7 	employed by the corporation of which they are directors;
21.8 	(6) the payment to employees for reimbursement of meal expenses when employees are 
21.9 	required to perform work after their regular hours;
21.10 	(7) the payment into a trust or plan for purposes of providing legal or dental services if 
21.11 	provided for all employees generally or for a class or classes of employees;
21.12 	(8) the value of parking facilities provided or paid for by an employer, in whole or in 
21.13 	part, if provided for all employees generally or for a class or classes of employees;
21.14 	(9) royalties to an owner of a franchise, license, copyright, patent, oil, mineral, or other 
21.15 	right;
21.16 	(10) advances or reimbursements for traveling or other ordinary and necessary expenses 
21.17 	incurred or reasonably expected to be incurred in the business of the employer. Traveling 
21.18 	and other reimbursed expenses must be identified either by making separate payments or 
21.19 	by specifically indicating the separate amounts where both wages and expense allowances 
21.20 	are combined in a single payment;
21.21 	(11) residual payments to radio, television, and similar artists that accrue after the 
21.22 	production of television commercials, musical jingles, spot announcements, radio 
21.23 	transcriptions, film soundtracks, and similar activities;
21.24 	(12) the income to a former employee resulting from the exercise of a nonqualified stock 
21.25 	option;
21.26 	(13) supplemental unemployment benefit payments under a plan established by an 
21.27 	employer, if the payment is not wages under the Federal Unemployment Tax Act. The 
21.28 	payments are wages unless made solely for the supplementing of weekly state or federal 
21.29 	unemployment benefits. Supplemental unemployment benefit payments may not be assigned, 
21.30 	nor may any consideration be required from the applicant, other than a release of claims in 
21.31 	order to be excluded from wages;
22.1 	(14) sickness or accident disability payments made by the employer after the expiration 
22.2 	of six calendar months following the last calendar month that the individual worked for the 
22.3 	employer;
22.4 	(15) disability payments made under the provisions of any workers' compensation law;
22.5 	(16) sickness or accident disability payments made by a third-party payer such as an 
22.6 	insurance company; or
22.7 	(17) payments made into a trust fund, or for the purchase of insurance or an annuity, to 
22.8 	provide for sickness or accident disability payments to employees under a plan or system 
22.9 	established by the employer that provides for the employer's employees generally or for a 
22.10 	class or classes of employees.
22.11 	(b) Nothing in this subdivision excludes from the term "wages" any payment made under 
22.12 	any type of salary reduction agreement, including payments made under a cash or deferred 
22.13 	arrangement and cafeteria plan, as defined in United States Code, title 26, sections 401(k) 
22.14 	and 125 of the federal Internal Revenue Code, to the extent that the employee has the option 
22.15 	to receive the payment in cash.
22.16 	(c) Wages includes the total payment to the operator and supplier of a vehicle or other 
22.17 	equipment where the payment combines compensation for personal services as well as 
22.18 	compensation for the cost of operating and hiring the equipment in a single payment. This 
22.19 	paragraph does not apply if:
22.20 	(1) there is a preexisting written agreement providing for allocation of specific amounts; 
22.21 	or
22.22 	(2) at the time of each payment there is a written acknowledgment indicating the separate 
22.23 	allocated amounts.
22.24 	(d) Wages includes payments made for services as a caretaker. Unless there is a contract 
22.25 	or other proof to the contrary, compensation is considered as being equally received by a 
22.26 	married couple where the employer makes payment to only one spouse, or by all tenants of 
22.27 	a household who perform services where two or more individuals share the same dwelling 
22.28 	and the employer makes payment to only one individual.
22.29 	(e) Wages includes payments made for services by a migrant family. Where services 
22.30 	are performed by a married couple or a family and an employer makes payment to only one 
22.31 	individual, each worker is considered as having received an equal share of the compensation 
22.32 	unless there is a contract or other proof to the contrary.
23.1 	(f) Wages includes advances or draws against future earnings, when paid, unless the 
23.2 	payments are designated as a loan or return of capital on the books and records of the 
23.3 	employer at the time of payment.
23.4 	(g) Wages includes payments made by a subchapter "S" corporation, as organized under 
23.5 	the Internal Revenue Code, to or on behalf of officers and shareholders that are reasonable 
23.6 	compensation for services performed for the corporation.
23.7 	For a subchapter "S" corporation, wages does not include:
23.8 	(1) a loan for business purposes to an officer or shareholder evidenced by a promissory 
23.9 	note signed by an officer before the payment of the loan proceeds and recorded on the books 
23.10 	and records of the corporation as a loan to an officer or shareholder;
23.11 	(2) a repayment of a loan or payment of interest on a loan made by an officer to the 
23.12 	corporation and recorded on the books and records of the corporation as a liability;
23.13 	(3) a reimbursement of reasonable corporation expenses incurred by an officer and 
23.14 	documented by a written expense voucher and recorded on the books and records of the 
23.15 	corporation as corporate expenses; and
23.16 	(4) a reasonable lease or rental payment to an officer who owns property that is leased 
23.17 	or rented to the corporation.
23.18 		Subd. 48.Wages paid. (a) "Wages paid" means the amount of wages:
23.19 	(1) that have been actually paid; or
23.20 	(2) that have been credited to or set apart so that payment and disposition is under the 
23.21 	control of the employee.
23.22 	(b) Wage payments delayed beyond the regularly scheduled pay date are wages paid on 
23.23 	the missed pay date. Back pay is wages paid on the date of actual payment. Any wages 
23.24 	earned but not paid with no scheduled date of payment are wages paid on the last day of 
23.25 	employment.
23.26 	(c) Wages paid does not include wages earned but not paid except as provided for in 
23.27 	this subdivision.
23.28 		Subd. 49.Week. "Week" means calendar week ending at midnight Saturday.
23.29 		Subd. 50.Weekly benefit amount. "Weekly benefit amount" means the amount of 
23.30 	family and medical leave benefits computed under section 268B.04.

23.31 	EFFECTIVE DATE. This section is effective July 1, 2023.

24.1 	Sec. 10. [268B.02] FAMILY AND MEDICAL BENEFIT INSURANCE PROGRAM 
24.2 	CREATION.
24.3 		Subdivision 1.Creation. A family and medical benefit insurance program is created to 
24.4 	be administered by the commissioner according to the terms of this chapter.
24.5 		Subd. 2.Creation of division. A Family and Medical Benefit Insurance Division is 
24.6 	created within the department under the authority of the commissioner. The commissioner 
24.7 	shall appoint a director of the division. The division shall administer and operate the benefit 
24.8 	program under this chapter.
24.9 		Subd. 3.Rulemaking. The commissioner shall adopt rules to implement the provisions 
24.10 	of this chapter. For the purposes of this chapter, the commissioner may use the expedited 
24.11 	rulemaking process under section 14.389.
24.12 		Subd. 4.Account creation; appropriation. The family and medical benefit insurance 
24.13 	account is created in the special revenue fund in the state treasury. Money in this account 
24.14 	is appropriated to the commissioner to pay benefits under and to administer this chapter, 
24.15 	including outreach required under section 268B.18. Appropriations and transfers to the 
24.16 	account are credited to the account. Earnings, such as interest, dividends, and any other 
24.17 	earnings arising from assets of the account, are credited to the account. Money remaining 
24.18 	in the account at the end of a fiscal year are not canceled to the general fund but remain in 
24.19 	the account until expended.
24.20 		Subd. 5.Information technology services and equipment. The department is exempt 
24.21 	from the provisions of section 16E.016 for the purposes of this chapter.

24.22 	EFFECTIVE DATE. This section is effective July 1, 2023.

24.23 	Sec. 11. [268B.03] PAYMENT OF BENEFITS.
24.24 		Subdivision 1.Requirements. The commissioner must pay benefits from the family 
24.25 	and medical benefit insurance account as provided under this chapter to an applicant who 
24.26 	has met each of the following requirements:
24.27 	(1) the applicant has filed an application for benefits and established a benefit account 
24.28 	in accordance with section 268B.04;
24.29 	(2) the applicant has met all of the ongoing eligibility requirements under section 
24.30 	268B.06;
24.31 	(3) the applicant does not have an outstanding overpayment of family or medical leave 
24.32 	benefits, including any penalties or interest;
25.1 	(4) the applicant has not been held ineligible for benefits under section 268.07, subdivision 
25.2 	2; and
25.3 	(5) the applicant is not employed exclusively by a private plan employer and has wage 
25.4 	credits during the base year attributable to employers covered under the state family and 
25.5 	medical leave program.
25.6 		Subd. 2.Benefits paid from state funds. Benefits are paid from state funds and are not 
25.7 	considered paid from any special insurance plan, nor as paid by an employer. An application 
25.8 	for family or medical leave benefits is not considered a claim against an employer but is 
25.9 	considered a request for benefits from the family and medical benefit insurance account. 
25.10 	The commissioner has the responsibility for the proper payment of benefits regardless of 
25.11 	the level of interest or participation by an applicant or an employer in any determination or 
25.12 	appeal. An applicant's entitlement to benefits must be determined based upon that information 
25.13 	available without regard to a burden of proof. Any agreement between an applicant and an 
25.14 	employer is not binding on the commissioner in determining an applicant's entitlement. 
25.15 	There is no presumption of entitlement or nonentitlement to benefits.

25.16 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
25.17 	2025.

25.18 	Sec. 12. [268B.04] BENEFIT ACCOUNT; BENEFITS.
25.19 		Subdivision 1.Application for benefits; determination of benefit account. (a) An 
25.20 	application for benefits may be filed up to 60 days before leave taken under section 268B.085 
25.21 	in person, by mail, or by electronic transmission as the commissioner may require. The 
25.22 	applicant must include certification supporting a request for leave under this chapter. The 
25.23 	applicant must meet eligibility requirements and must provide all requested information in 
25.24 	the manner required. If the applicant fails to provide all requested information, the 
25.25 	communication is not an application for family and medical leave benefits.
25.26 	(b) The commissioner must examine each application for benefits to determine the base 
25.27 	period and the benefit year, and based upon all the covered employment in the base period 
25.28 	the commissioner must determine the weekly benefit amount available, if any, and the 
25.29 	maximum amount of benefits available, if any. The determination, which is a document 
25.30 	separate and distinct from a document titled a determination of eligibility or determination 
25.31 	of ineligibility, must be titled determination of benefit account. A determination of benefit 
25.32 	account must be sent to the applicant and all base period employers, by mail or electronic 
25.33 	transmission.
26.1 	(c) If a base period employer did not provide wage detail information for the applicant 
26.2 	as required under section 268B.12, the commissioner may accept an applicant certification 
26.3 	of wage credits, based upon the applicant's records, and issue a determination of benefit 
26.4 	account.
26.5 	(d) The commissioner may, at any time within 24 months from the establishment of a 
26.6 	benefit account, reconsider any determination of benefit account and make an amended 
26.7 	determination if the commissioner finds that the wage credits listed in the determination 
26.8 	were incorrect for any reason. An amended determination of benefit account must be 
26.9 	promptly sent to the applicant and all base period employers, by mail or electronic 
26.10 	transmission. This paragraph does not apply to documents titled determinations of eligibility 
26.11 	or determinations of ineligibility issued.
26.12 	(e) If an amended determination of benefit account reduces the weekly benefit amount 
26.13 	or maximum amount of benefits available, any benefits that have been paid greater than the 
26.14 	applicant was entitled is an overpayment of benefits. A determination or amended 
26.15 	determination issued under this section that results in an overpayment of benefits must set 
26.16 	out the amount of the overpayment and the requirement that the overpaid benefits must be 
26.17 	repaid according to section 268B.185.
26.18 		Subd. 2.Benefit account requirements. To establish a benefit account, an applicant 
26.19 	must have wage credits of at least 5.3 percent of the state's average annual wage rounded 
26.20 	down to the next lower $100.
26.21 		Subd. 3.Weekly benefit amount; maximum amount of benefits available; prorated 
26.22 	amount. (a) Subject to the maximum weekly benefit amount, an applicant's weekly benefit 
26.23 	is calculated by adding the amounts obtained by applying the following percentage to an 
26.24 	applicant's average typical workweek and weekly wage during the high quarter of the base 
26.25 	period:
26.26 	(1) 90 percent of wages that do not exceed 50 percent of the state's average weekly wage; 
26.27 	plus
26.28 	(2) 66 percent of wages that exceed 50 percent of the state's average weekly wage but 
26.29 	not 100 percent; plus
26.30 	(3) 55 percent of wages that exceed 100 percent of the state's average weekly wage.
26.31 	(b) The state's average weekly wage is the average wage as calculated under section 
26.32 	268.035, subdivision 23, at the time a benefit amount is first determined.
27.1 	(c) The maximum weekly benefit amount is the state's average weekly wage as calculated 
27.2 	under section 268.035, subdivision 23.
27.3 	(d) The state's maximum weekly benefit amount, computed in accordance with section 
27.4 	268.035, subdivision 23, applies to a benefit account established effective on or after the 
27.5 	last Sunday in October. Once established, an applicant's weekly benefit amount is not 
27.6 	affected by the last Sunday in October change in the state's maximum weekly benefit amount.
27.7 	(e) For an employee receiving family or medical leave, a weekly benefit amount is 
27.8 	prorated when:
27.9 	(1) the employee works hours for wages; or
27.10 	(2) the employee uses paid sick leave, paid vacation leave, or other paid time off that is 
27.11 	not considered a supplemental benefit payment as defined in section 268B.01, subdivision 
27.12 	41.
27.13 		Subd. 4.Timing of payment. Except as otherwise provided for in this chapter, benefits 
27.14 	must be paid weekly.
27.15 		Subd. 5.Maximum length of benefits. (a) Except as provided in paragraph (b), in a 
27.16 	single benefit year, an applicant may receive benefits under this chapter as follows:
27.17 	(1) for an applicant's serious health condition or pregnancy, up to 12 weeks of benefits; 
27.18 	or
27.19 	(2) for bonding, safety leave, family care, or leave related to a qualifying exigency, up 
27.20 	to 12 weeks of benefits; and
27.21 	(3) if an applicant is eligible for benefits under clauses (1) and (2) in the same benefit 
27.22 	year, up to an additional six weeks of benefits; provided that, the maximum length of benefits 
27.23 	an applicant may receive in a single benefit year under this chapter shall not exceed 18 
27.24 	weeks total, unless paragraph (b) applies.
27.25 	(b) In addition to the benefits received under paragraph (a), an applicant may receive 
27.26 	up to an additional six weeks of benefits for leave related to pregnancy recovery or 
27.27 	complications; provided that, the maximum length of benefits an applicant may receive in 
27.28 	a single benefit year under this chapter shall not exceed 24 weeks total.
27.29 		Subd. 6.Minimum period for which benefits payable. Except for a claim for benefits 
27.30 	for bonding leave, any claim for benefits must be based on a single qualifying event of at 
27.31 	least seven calendar days. Benefits may be paid for a minimum duration of eight consecutive 
28.1 	hours in a week. If an applicant on leave claims eight hours at any point during a week, the 
28.2 	minimum duration is satisfied.
28.3 		Subd. 7.Right of appeal. (a) A determination or amended determination of benefit 
28.4 	account is final unless an appeal is filed by the applicant within 60 calendar days after the 
28.5 	sending of the determination or amended determination.
28.6 	(b) Any applicant may appeal from a determination or amended determination of benefit 
28.7 	account on the issue of whether services performed constitute employment, whether the 
28.8 	employment is covered employment, and whether money paid constitutes wages.
28.9 		Subd. 8.Limitations on applications and benefit accounts. (a) An application for 
28.10 	family or medical leave benefits is effective the Sunday of the calendar week that the 
28.11 	application was filed. An application for benefits may be backdated one calendar week 
28.12 	before the Sunday of the week the application was actually filed if the applicant requests 
28.13 	the backdating within seven calendar days of the date the application is filed. An application 
28.14 	may be backdated only if the applicant was eligible for the benefit during the period of the 
28.15 	backdating. If an individual attempted to file an application for benefits, but was prevented 
28.16 	from filing an application by the department, the application is effective the Sunday of the 
28.17 	calendar week the individual first attempted to file an application.
28.18 	(b) A benefit account established under subdivision 2 is effective the date the application 
28.19 	for benefits was effective.
28.20 	(c) A benefit account, once established, may later be withdrawn if:
28.21 	(1) the applicant has not been paid any benefits on that benefit account; and
28.22 	(2) a new application for benefits is filed and a new benefit account is established at the 
28.23 	time of the withdrawal.
28.24 	(d) A benefit account may be withdrawn after the expiration of the benefit year if the 
28.25 	applicant was not paid any benefits on the benefit account that is being withdrawn.
28.26 	(e) A determination or amended determination of eligibility or ineligibility issued under 
28.27 	section 268B.07 that was sent before the withdrawal of the benefit account, remains in effect 
28.28 	and is not voided by the withdrawal of the benefit account.

28.29 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
28.30 	2025.

29.1 	Sec. 13. [268B.05] NOTIFICATION OF CHANGED CIRCUMSTANCES.
29.2 	An applicant shall promptly notify the department of changes that may affect eligibility 
29.3 	under section 268B.06.

29.4 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
29.5 	2025.

29.6 	Sec. 14. [268B.06] ELIGIBILITY REQUIREMENTS; PAYMENTS THAT AFFECT 
29.7 	BENEFITS.
29.8 		Subdivision 1.Eligibility conditions. (a) An applicant may be eligible to receive family 
29.9 	or medical leave benefits for any week if:
29.10 	(1) the week for which benefits are requested is in the applicant's benefit year;
29.11 	(2) the applicant was unable to perform regular work due to a serious health condition, 
29.12 	a qualifying exigency, safety leave, family care, bonding, pregnancy, or recovery from 
29.13 	pregnancy for the period required under subdivision 2. For bonding leave, eligibility ends 
29.14 	12 months after birth or placement;
29.15 	(3) the applicant has sufficient wage credits from an employer or employers as defined 
29.16 	in section 268B.01, subdivision 41, to establish a benefit account under section 268B.04; 
29.17 	and
29.18 	(4) an applicant requesting benefits under this chapter must fulfill certification 
29.19 	requirements under subdivision 3.
29.20 	(b) A self-employed individual or independent contractor who has elected and been 
29.21 	approved for coverage under section 268B.11 need not fulfill the requirement of paragraph 
29.22 	(a), clause (3) or (4).
29.23 		Subd. 2.Seven-day qualifying event. (a) The period for which an applicant is seeking 
29.24 	benefits must be or have been based on a single event of at least seven calendar days' duration 
29.25 	related to pregnancy, recovery from pregnancy, family care, a qualifying exigency, safety 
29.26 	leave, or the applicant's serious health condition. The days must be consecutive, unless the 
29.27 	leave is intermittent.
29.28 	(b) Benefits related to bonding need not meet the seven-day qualifying event requirement.
29.29 	(c) The commissioner shall use the rulemaking authority under section 268B.02, 
29.30 	subdivision 3, to adopt rules regarding what serious health conditions and other events are 
29.31 	prospectively presumed to constitute seven-day qualifying events under this chapter.
30.1 		Subd. 3.Certification. (a) Certification for an applicant taking leave related to the 
30.2 	applicant's serious health condition shall be sufficient if the certification states the date on 
30.3 	which the serious health condition began, the probable duration of the condition, and the 
30.4 	appropriate medical facts within the knowledge of the health care provider as required by 
30.5 	the commissioner.
30.6 	(b) Certification for an applicant taking leave to care for a family member with a serious 
30.7 	health condition shall be sufficient if the certification states the date on which the serious 
30.8 	health condition commenced, the probable duration of the condition, the appropriate medical 
30.9 	facts within the knowledge of the health care provider as required by the commissioner, a 
30.10 	statement that the family member requires care, and an estimate of the amount of time that 
30.11 	the family member will require care.
30.12 	(c) Certification for an applicant taking leave related to pregnancy shall be sufficient if 
30.13 	the certification states the applicant is experiencing a pregnancy and recovery period based 
30.14 	on appropriate medical facts within the knowledge of the health care provider.
30.15 	(d) Certification for an applicant taking bonding leave because of the birth of the 
30.16 	applicant's child shall be sufficient if the certification includes either the child's birth 
30.17 	certificate or a document issued by the health care provider of the child or the health care 
30.18 	provider of the person who gave birth, stating the child's birth date or estimated due date.
30.19 	(e) Certification for an applicant taking bonding leave because of the placement of a 
30.20 	child with the applicant for adoption or foster care shall be sufficient if the applicant provides 
30.21 	a document issued by the health care provider of the child, an adoption or foster care agency 
30.22 	involved in the placement, or by other individuals as determined by the commissioner that 
30.23 	confirms the placement and the date of placement. To the extent that the status of an applicant 
30.24 	as an adoptive or foster parent changes while an application for benefits is pending, or while 
30.25 	the covered individual is receiving benefits, the applicant must notify the department of 
30.26 	such change in status in writing.
30.27 	(f) Certification for an applicant taking leave because of a qualifying exigency shall be 
30.28 	sufficient if the certification includes:
30.29 	(1) a copy of the family member's active-duty orders;
30.30 	(2) other documentation issued by the United States armed forces; or
30.31 	(3) other documentation permitted by the commissioner.
30.32 	(g) Certification for an applicant taking safety leave is sufficient if the certification 
30.33 	includes a court record or documentation signed by a volunteer or employee of a victim's 
31.1 	services organization, an attorney, a police officer, or an antiviolence counselor. The 
31.2 	commissioner must not require disclosure of details relating to an applicant's or applicant's 
31.3 	family member's domestic abuse, sexual assault, or stalking.
31.4 	(h) Certifications under paragraphs (a) to (e) must be reviewed and signed by a health 
31.5 	care provider with knowledge of the qualifying event associated with the leave.
31.6 	(i) For a leave taken on an intermittent or reduced-schedule basis, based on a serious 
31.7 	health condition of an applicant or applicant's family member, the certification under this 
31.8 	subdivision must include an explanation of how such leave would be medically beneficial 
31.9 	to the individual with the serious health condition.
31.10 		Subd. 4.Not eligible. An applicant is ineligible for family or medical leave benefits for 
31.11 	any portion of a typical workweek:
31.12 	(1) that occurs before the effective date of a benefit account;
31.13 	(2) that the applicant fails or refuses to provide information on an issue of ineligibility 
31.14 	required under section 268B.07, subdivision 2; or
31.15 	(3) for which the applicant worked for pay from the employer from whom the applicant 
31.16 	is taking leave under this chapter.
31.17 		Subd. 5.Vacation, sick leave, paid time off, and disability insurance payments. (a) 
31.18 	An employee may use vacation pay, sick pay, paid time off pay, or disability insurance 
31.19 	payments, in lieu of family or medical leave program benefits under this chapter, provided 
31.20 	the employee is concurrently eligible. Subject to the limitations of section 268B.09, 
31.21 	subdivision 1, an employee is entitled to the employment protections under section 268B.09 
31.22 	for those workdays during which this option is exercised. This subdivision applies to private 
31.23 	plans under section 268B.10.
31.24 	(b) An employer may offer a supplemental benefit payment, as defined in section 
31.25 	268B.01, subdivision 41, to an employee on family or medical leave in addition to any paid 
31.26 	family or medical leave benefits the employee is receiving. The choice to receive a 
31.27 	supplemental benefit payment lies with the employee. Nothing in this section shall be 
31.28 	construed as requiring an employee to receive, or an employer to provide, a supplemental 
31.29 	benefit payment.
31.30 		Subd. 6.Workers' compensation offset. (a) An applicant is not eligible to receive 
31.31 	benefits for any portion of a week in which the applicant is receiving or has received 
31.32 	compensation for loss of wages equal to or in excess of the applicant's weekly family or 
31.33 	medical leave benefit amount under:
32.1 	(1) the workers' compensation law of this state; or
32.2 	(2) the workers' compensation law of any other state or similar federal law.
32.3 	(b) This subdivision does not apply to an applicant who has a claim pending for loss of 
32.4 	wages under paragraph (a). If the applicant later receives compensation as a result of the 
32.5 	pending claim, the applicant is subject to paragraph (a) and the family or medical leave 
32.6 	benefits paid are overpaid benefits under section 268B.185.
32.7 	(c) If the amount of compensation described under paragraph (a) for any week is less 
32.8 	than the applicant's weekly family or medical leave benefit amount, benefits requested for 
32.9 	that week are reduced by the amount of that compensation payment.
32.10 		Subd. 7.Separation, severance, or bonus payments. (a) An applicant is not eligible 
32.11 	to receive benefits for any week the applicant is receiving, has received, or will receive 
32.12 	separation pay, severance pay, bonus pay, or any other payments paid by an employer 
32.13 	because of, upon, or after separation from employment. This subdivision applies if the 
32.14 	payment is:
32.15 	(1) considered wages under section 268B.01, subdivision 43; or
32.16 	(2) subject to the Federal Insurance Contributions Act (FICA) tax imposed to fund Social 
32.17 	Security and Medicare.
32.18 	(b) Payments under this subdivision are applied to the period immediately following the 
32.19 	later of the date of separation from employment or the date the applicant first becomes 
32.20 	aware that the employer will be making a payment. The date the payment is actually made 
32.21 	or received, or that an applicant must agree to a release of claims, does not affect the 
32.22 	application of this paragraph.
32.23 	(c) This subdivision does not apply to vacation pay, sick pay, personal time off pay, or 
32.24 	supplemental benefit payment under subdivision 4.
32.25 	(d) This subdivision applies to all the weeks of payment.
32.26 	(e) Under this subdivision, if the payment with respect to a week is equal to or more 
32.27 	than the applicant's weekly benefit amount, the applicant is ineligible for benefits for that 
32.28 	week. If the payment with respect to a week is less than the applicant's weekly benefit 
32.29 	amount, benefits are reduced by the amount of the payment.
32.30 		Subd. 8.Social Security disability benefits. (a) An applicant who is receiving, has 
32.31 	received, or has filed for primary Social Security disability benefits for any week is ineligible 
32.32 	for benefits for that week, unless:
33.1 	(1) the Social Security Administration approved the collecting of primary Social Security 
33.2 	disability benefits each month the applicant was employed during the base period; or
33.3 	(2) the applicant provides a statement from an appropriate health care professional who 
33.4 	is aware of the applicant's Social Security disability claim and the basis for that claim, 
33.5 	certifying that the applicant is able to perform the essential functions of their employment 
33.6 	with or without a reasonable accommodation.
33.7 	(b) If an applicant meets the requirements of paragraph (a), clause (1) or (2), there is no 
33.8 	deduction from the applicant's weekly benefit amount for any Social Security disability 
33.9 	benefits.
33.10 	(c) Information from the Social Security Administration is conclusive, absent specific 
33.11 	evidence showing that the information was erroneous.

33.12 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
33.13 	2025.

33.14 	Sec. 15. [268B.07] DETERMINATION ON ISSUES OF ELIGIBILITY.
33.15 		Subdivision 1.Employer notification. (a) Upon a determination that an applicant is 
33.16 	entitled to benefits, the commissioner must promptly send a notification to each current 
33.17 	employer of the applicant, if any, in accordance with paragraph (b).
33.18 	(b) The notification under paragraph (a) must include, at a minimum:
33.19 	(1) the name of the applicant;
33.20 	(2) that the applicant has applied for and received benefits;
33.21 	(3) the week the benefits commence;
33.22 	(4) the weekly benefit amount payable; and
33.23 	(5) the maximum duration of benefits.
33.24 		Subd. 2.Determination. (a) The commissioner must determine any issue of ineligibility 
33.25 	raised by information required from an applicant and send to the applicant and any current 
33.26 	base period employer, by mail or electronic transmission, a document titled a determination 
33.27 	of eligibility or a determination of ineligibility, as is appropriate, within two weeks, unless 
33.28 	the application is incomplete due to outstanding requests for information including clerical 
33.29 	or other errors. Nothing prohibits the commissioner from requesting additional information 
33.30 	or the applicant from supplementing their initial application before a determination of 
34.1 	eligibility. The commissioner may extend the deadline for a determination under this 
34.2 	subdivision due to extenuating circumstances.
34.3 	(b) If an applicant obtained benefits through misrepresentation, the department is 
34.4 	authorized to issue a determination of ineligibility within 12 months of the establishment 
34.5 	of the benefit account.
34.6 	(c) If the department has filed an intervention in a worker's compensation matter under 
34.7 	section 176.361, the department is authorized to issue a determination of ineligibility within 
34.8 	48 months of the establishment of the benefit account.
34.9 	(d) A determination of eligibility or determination of ineligibility is final unless an appeal 
34.10 	is filed by the applicant within 60 calendar days after sending. The determination must 
34.11 	contain a prominent statement indicating the consequences of not appealing. Proceedings 
34.12 	on the appeal are conducted in accordance with section 268B.08.
34.13 	(e) An issue of ineligibility required to be determined under this section includes any 
34.14 	question regarding the denial or allowing of benefits under this chapter.
34.15 		Subd. 3.Amended determination. Unless an appeal has been filed, the commissioner, 
34.16 	on the commissioner's own motion, may reconsider a determination of eligibility or 
34.17 	determination of ineligibility that has not become final and issue an amended determination. 
34.18 	Any amended determination must be sent to the applicant and any employer in the current 
34.19 	base period by mail or electronic transmission. Any amended determination is final unless 
34.20 	an appeal is filed by the applicant within 60 calendar days after sending.
34.21 		Subd. 4.Benefit payment. If a determination or amended determination allows benefits 
34.22 	to an applicant, the family or medical leave benefits must be paid regardless of any appeal 
34.23 	period or any appeal having been filed.
34.24 		Subd. 5.Overpayment. A determination or amended determination that holds an 
34.25 	applicant ineligible for benefits for periods an applicant has been paid benefits is an 
34.26 	overpayment of those family or medical leave benefits. A determination or amended 
34.27 	determination issued under this section that results in an overpayment of benefits must set 
34.28 	out the amount of the overpayment and the requirement that the overpaid benefits must be 
34.29 	repaid according to section 268B.185.

34.30 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
34.31 	2025.

35.1 	Sec. 16. [268B.08] APPEAL PROCESS.
35.2 		Subdivision 1.Hearing. (a) The commissioner shall designate a chief benefit judge.
35.3 	(b) Upon a timely appeal to a determination having been filed or upon a referral for 
35.4 	direct hearing, the chief benefit judge must set a time and date for a de novo due-process 
35.5 	hearing and send notice to an applicant and an employer, by mail or electronic transmission, 
35.6 	not less than ten calendar days before the date of the hearing.
35.7 	(c) The commissioner may adopt rules on procedures for hearings. The rules need not 
35.8 	conform to common law or statutory rules of evidence and other technical rules of procedure.
35.9 	(d) The chief benefit judge has discretion regarding the method by which the hearing is 
35.10 	conducted.
35.11 		Subd. 2.Decision. (a) After the conclusion of the hearing, upon the evidence obtained, 
35.12 	the benefit judge must serve by mail or electronic transmission to all parties the decision, 
35.13 	reasons for the decision, and written findings of fact.
35.14 	(b) Decisions of a benefit judge are not precedential.
35.15 		Subd. 3.Request for reconsideration. Any party, or the commissioner, may, within 
35.16 	30 calendar days after service of the benefit judge's decision, file a request for reconsideration 
35.17 	asking the judge to reconsider that decision.
35.18 		Subd. 4.Appeal to court of appeals. Any final determination on a request for 
35.19 	reconsideration may be appealed by any party directly to the Minnesota Court of Appeals.
35.20 		Subd. 5.Benefit judges. (a) Only employees of the department who are attorneys licensed 
35.21 	to practice law in Minnesota may serve as a chief benefit judge, senior benefit judges who 
35.22 	are supervisors, or benefit judges.
35.23 	(b) The chief benefit judge must assign a benefit judge to conduct a hearing and may 
35.24 	transfer to another benefit judge any proceedings pending before another benefit judge.

35.25 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
35.26 	2025.

35.27 	Sec. 17. [268B.085] LEAVE.
35.28 		Subdivision 1.Right to leave. (a) Ninety calendar days from the date of hire, an employee 
35.29 	has a right to leave from employment for any day, or portion of a day, for which:
35.30 	(1) the employee meets the eligibility criteria under section 268B.06, subdivision 1, 
35.31 	clause (2); or
36.1 	(2) the employee has applied for benefits in good faith under this chapter. For the purposes 
36.2 	of this subdivision, good faith is defined as anything that is not knowingly false or in reckless 
36.3 	disregard of the truth.
36.4 	(b) Notwithstanding paragraph (a), an employee no longer has a right to leave following 
36.5 	a denial of benefits by a benefit judge. The employee's right to leave under this section is 
36.6 	not to exceed the maximum length of benefits under section 268B.04, subdivision 5.
36.7 		Subd. 2.Notice to employer. (a) If the need for leave is foreseeable, an employee must 
36.8 	provide the employer at least 30 days' advance notice before leave under this chapter is to 
36.9 	begin. If 30 days' notice is not practicable because of a lack of knowledge of approximately 
36.10 	when leave will be required to begin, a change in circumstances, or a medical emergency, 
36.11 	notice must be given as soon as practicable. Whether leave is to be continuous or is to be 
36.12 	taken intermittently or on a reduced-schedule basis, notice need only be given one time, but 
36.13 	the employee must advise the employer as soon as practicable if dates of scheduled leave 
36.14 	change or are extended, or were initially unknown. In those cases where the employee is 
36.15 	required to provide at least 30 days' notice of foreseeable leave and does not do so, the 
36.16 	employee must explain the reasons why notice was not practicable upon request from the 
36.17 	employer.
36.18 	(b) "As soon as practicable" means as soon as both possible and practical, taking into 
36.19 	account all of the facts and circumstances in the individual case. When an employee becomes 
36.20 	aware of a need for leave under this chapter less than 30 days in advance, it should be 
36.21 	practicable for the employee to provide notice of the need for leave either the same day or 
36.22 	the next day, unless the need for leave is based on a medical emergency. In all cases, 
36.23 	however, the determination of when an employee could practicably provide notice must 
36.24 	take into account the individual facts and circumstances.
36.25 	(c) An employee shall provide at least oral, telephone, or text message notice sufficient 
36.26 	to make the employer aware that the employee needs leave allowed under this chapter and 
36.27 	the anticipated timing and duration of the leave.
36.28 	(d) An employer may require an employee to comply with the employer's usual and 
36.29 	customary notice and procedural requirements for requesting leave, absent unusual 
36.30 	circumstances or other circumstances caused by the reason for the employee's need for 
36.31 	leave. Leave under this chapter must not be delayed or denied where an employer's usual 
36.32 	and customary notice or procedural requirements require notice to be given sooner than set 
36.33 	forth in this subdivision.
37.1 	(e) An employer may require that an employee taking leave under this chapter provide 
37.2 	a copy of the certification under section 268B.06, subdivision 3. Upon a written request 
37.3 	from the employer, the employee shall provide a copy of the certification as soon as 
37.4 	practicable given all of the facts and circumstances in the individual situation. Providing 
37.5 	certification at or around the time the employee provides a certification to the department 
37.6 	is considered practicable. In addition to any prohibition imposed under section 268B.09, 
37.7 	an employer must not discharge, discipline, penalize, interfere with, threaten, restrain, 
37.8 	coerce, or otherwise retaliate or discriminate against an employee for providing this 
37.9 	certification.
37.10 	(f) If an employer has failed to provide notice to the employee as required under section 
37.11 	268B.26, paragraph (a), (b), or (e), the employee is not required to comply with the notice 
37.12 	requirements of this subdivision.
37.13 		Subd. 3.Bonding leave. Bonding leave taken under this chapter begins at a time requested 
37.14 	by the employee. Bonding leave must end within 12 months of the birth, adoption, or 
37.15 	placement of a foster child, except that, in the case where the child must remain in the 
37.16 	hospital longer than the mother, the leave must end within 12 months after the child leaves 
37.17 	the hospital. Employees may also use bonding leave under this chapter before the actual 
37.18 	placement or adoption of a child in situations that include but are not limited to an employee's 
37.19 	requirement to: attend counseling sessions; appear in court; consult with any attorney or 
37.20 	doctor representing the birth parent; submit to a physical examination; or travel to another 
37.21 	country to complete an adoption.
37.22 		Subd. 4.Intermittent or reduced-leave schedule. (a) Leave under this chapter, based 
37.23 	on a serious health condition, may be taken intermittently or on a reduced-leave schedule 
37.24 	if such leave is reasonable and appropriate to the needs of the individual with the serious 
37.25 	health condition. For all other leaves under this chapter, leave may be taken intermittently 
37.26 	or on a reduced-leave schedule. Intermittent leave is leave taken in separate blocks of time 
37.27 	due to a single, seven-day qualifying event. A reduced-leave schedule is a leave schedule 
37.28 	that reduces an employee's usual number of working hours per workweek or hours per 
37.29 	workday.
37.30 	(b) Leave taken intermittently or on a reduced-schedule basis counts toward the 
37.31 	maximums described in section 268B.04, subdivision 5.
37.32 	(c) For applicants who take leave on an intermittent or reduced leave schedule, the 
37.33 	weekly benefit amount is prorated.

38.1 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
38.2 	2025.

38.3 	Sec. 18. [268B.09] EMPLOYMENT PROTECTIONS.
38.4 		Subdivision 1.Retaliation prohibited. An employer must not discharge, discipline, 
38.5 	penalize, interfere with, threaten, restrain, coerce, or otherwise retaliate or discriminate 
38.6 	against an employee for requesting or obtaining benefits or leave, or for exercising any 
38.7 	other right under this chapter. In addition to the remedies provided in subdivision 8, the 
38.8 	commissioner of labor and industry may also issue a penalty to the employer of not less 
38.9 	than $1,000 and not more than $10,000 per violation, payable to the employee aggrieved. 
38.10 	In determining the amount of the penalty under this subdivision, the appropriateness of the 
38.11 	penalty to the size of the employer's business and the gravity of the violation shall be 
38.12 	considered.
38.13 		Subd. 2.Interference prohibited. An employer must not obstruct or impede an 
38.14 	application for leave or benefits or the exercise of any other right under this chapter. In 
38.15 	addition to the remedies provided in subdivision 8, the commissioner of labor and industry 
38.16 	may also issue a penalty to the employer of not less than $1,000 and not more than $10,000 
38.17 	per violation, payable to the employee aggrieved. In determining the amount of the penalty 
38.18 	under this subdivision, the appropriateness of the penalty to the size of the employer's 
38.19 	business and the gravity of the violation shall be considered.
38.20 		Subd. 3.Waiver of rights void. (a) Any agreement to waive, release, or commute rights 
38.21 	to benefits or any other right under this chapter is void, except for a voluntary settlement 
38.22 	agreement resolving disputed claims or a valid separation agreement releasing putative 
38.23 	claims.
38.24 	(b) Any provision, whether oral or written, of a lease, contract, or other agreement or 
38.25 	instrument that purports to be a waiver by an individual of any right or remedy provided in 
38.26 	this chapter is contrary to public policy and void if the waiver or release purports to waive 
38.27 	claims arising out of acts or practices that occur after the execution of the waiver or release.
38.28 	(c) A waiver or release of rights or remedies secured by this chapter that purports to 
38.29 	apply to claims arising out of acts or practices prior to, or concurrent with, the execution of 
38.30 	the waiver or release may be rescinded within 15 calendar days of its execution, except that 
38.31 	a waiver or release given in settlement of a claim filed with the department or with another 
38.32 	administrative agency or judicial body is valid and final upon execution. A waiving or 
38.33 	releasing party must be informed in writing of the right to rescind the waiver or release. To 
38.34 	be effective, the rescission must be in writing and delivered to the waived or released party 
39.1 	by hand, electronically with the receiving party's consent, or by mail within the 15-day 
39.2 	period. If delivered by mail, the rescission must be:
39.3 	(1) postmarked within the 15-day period;
39.4 	(2) properly addressed to the waived or released party; and
39.5 	(3) sent by certified mail, return receipt requested.
39.6 		Subd. 4.No assignment of benefits. Any assignment, pledge, or encumbrance of benefits 
39.7 	is void, except as provided under section 268B.10, subdivision 7. Benefits are exempt from 
39.8 	levy, execution, attachment, or any other remedy provided for the collection of debt. Any 
39.9 	waiver of this subdivision is void.
39.10 		Subd. 5.Continued insurance. (a) During any leave for which an employee is entitled 
39.11 	to benefits or leave under this chapter, the employer must maintain coverage under any 
39.12 	group insurance policy, group subscriber contract, or health care plan for the employee and 
39.13 	any dependents as if the employee was not on leave, provided, however, that the employee 
39.14 	must continue to pay any employee share of the cost of such benefits.
39.15 	(b) This subdivision may be waived for employees who are working in the construction 
39.16 	industry under a bona fide collective bargaining agreement that requires employer 
39.17 	contributions to a multiemployer health plan pursuant to United States Code, title 29, section 
39.18 	186(c)(5), but only if the waiver is set forth in clear and unambiguous terms in the collective 
39.19 	bargaining agreement and explicitly cites this subdivision.
39.20 		Subd. 6.Employee right to reinstatement. (a) On return from leave under this chapter, 
39.21 	an employee is entitled to be returned to the same position the employee held when leave 
39.22 	commenced or to an equivalent position with equivalent benefits, pay, and other terms and 
39.23 	conditions of employment. An employee is entitled to reinstatement even if the employee 
39.24 	has been replaced or the employee's position has been restructured to accommodate the 
39.25 	employee's absence.
39.26 	(b)(1) An equivalent position is one that is virtually identical to the employee's former 
39.27 	position in terms of pay, benefits, and working conditions, including privileges, prerequisites, 
39.28 	and status. It must involve the same or substantially similar duties and responsibilities, 
39.29 	which must entail substantially equivalent skill, effort, responsibility, and authority.
39.30 	(2) If an employee is no longer qualified for the position because of the employee's 
39.31 	inability to attend a necessary course, renew a license, fly a minimum number of hours, or 
39.32 	similar condition, as a result of the leave, the employee must be given a reasonable 
39.33 	opportunity to fulfill those conditions upon return from leave.
40.1 	(c)(1) An employee is entitled to any unconditional pay increases which may have 
40.2 	occurred during the leave period, such as cost of living increases. Pay increases conditioned 
40.3 	upon seniority, length of service, or work performed must be granted in accordance with 
40.4 	the employer's policy or practice with respect to other employees on an equivalent leave 
40.5 	status for a reason that does not qualify for leave under this chapter. An employee is entitled 
40.6 	to be restored to a position with the same or equivalent pay premiums, such as a shift 
40.7 	differential. If an employee departed from a position averaging ten hours of overtime, and 
40.8 	corresponding overtime pay, each week an employee is ordinarily entitled to such a position 
40.9 	on return from leave under this chapter.
40.10 	(2) Equivalent pay includes any bonus or payment, whether it is discretionary or 
40.11 	nondiscretionary, made to employees consistent with clause (1). If a bonus or other payment 
40.12 	is based on the achievement of a specified goal such as hours worked, products sold, or 
40.13 	perfect attendance, and the employee has not met the goal due to leave under this chapter, 
40.14 	the payment may be denied, unless otherwise paid to employees on an equivalent leave 
40.15 	status for a reason that does not qualify for leave under this chapter.
40.16 	(d) Benefits under this section include all benefits provided or made available to 
40.17 	employees by an employer, including group life insurance, health insurance, disability 
40.18 	insurance, sick leave, annual leave, educational benefits, and pensions, regardless of whether 
40.19 	benefits are provided by a practice or written policy of an employer through an employee 
40.20 	benefit plan as defined in section 3(3) of United States Code, title 29, section 1002(3).
40.21 	(1) At the end of an employee's leave under this chapter, benefits must be resumed in 
40.22 	the same manner and at the same levels as provided when the leave began, and subject to 
40.23 	any changes in benefit levels that may have taken place during the period of leave affecting 
40.24 	the entire workforce, unless otherwise elected by the employee. Upon return from a leave 
40.25 	under this chapter, an employee must not be required to requalify for any benefits the 
40.26 	employee enjoyed before leave began, including family or dependent coverages.
40.27 	(2) An employee may, but is not entitled to, accrue any additional benefits or seniority 
40.28 	during a leave under this chapter. Benefits accrued at the time leave began must be available 
40.29 	to an employee upon return from leave.
40.30 	(3) With respect to pension and other retirement plans, leave under this chapter must 
40.31 	not be treated as or counted toward a break in service for purposes of vesting and eligibility 
40.32 	to participate. If the plan requires an employee to be employed on a specific date in order 
40.33 	to be credited with a year of service for vesting, contributions, or participation purposes, 
40.34 	an employee on leave under this chapter must be treated as employed on that date. Periods 
41.1 	of leave under this chapter need not be treated as credited service for purposes of benefit 
41.2 	accrual, vesting, and eligibility to participate.
41.3 	(4) Employees on leave under this chapter must be treated as if they continued to work 
41.4 	for purposes of changes to benefit plans. Employees on leave under this chapter are entitled 
41.5 	to changes in benefit plans, except those which may be dependent upon seniority or accrual 
41.6 	during the leave period, immediately upon return from leave or to the same extent they 
41.7 	would have qualified if no leave had been taken.
41.8 	(e) An equivalent position must have substantially similar duties, conditions, 
41.9 	responsibilities, privileges, and status as the employee's original position.
41.10 	(1) The employee must be reinstated to the same or a geographically proximate worksite 
41.11 	from where the employee had previously been employed. If the employee's original worksite 
41.12 	has been closed, the employee is entitled to the same rights as if the employee had not been 
41.13 	on leave when the worksite closed.
41.14 	(2) The employee is ordinarily entitled to return to the same shift or the same or an 
41.15 	equivalent work schedule.
41.16 	(3) The employee must have the same or an equivalent opportunity for bonuses, 
41.17 	profit-sharing, and other similar discretionary and nondiscretionary payments.
41.18 	(4) This chapter does not prohibit an employer from accommodating an employee's 
41.19 	request to be restored to a different shift, schedule, or position which better suits the 
41.20 	employee's personal needs on return from leave, or to offer a promotion to a better position. 
41.21 	However, an employee must not be induced by the employer to accept a different position 
41.22 	against the employee's wishes.
41.23 	(f) The requirement that an employee be restored to the same or equivalent job with the 
41.24 	same or equivalent pay, benefits, and terms and conditions of employment does not extend 
41.25 	to de minimis, intangible, or unmeasurable aspects of the job.
41.26 	(g) Nothing in this section shall be deemed to affect the Americans with Disabilities 
41.27 	Act, United States Code, title 42, chapter 126.
41.28 	(h) This subdivision and subdivision 7 may be waived for employees who are working 
41.29 	in the construction industry under a bona fide collective bargaining agreement with a 
41.30 	construction trade union that maintains a referral-to-work procedure for employees to obtain 
41.31 	employment with multiple signatory employers, but only if the waiver is set forth in clear 
41.32 	and unambiguous terms in the collective bargaining agreement and explicitly cites this 
41.33 	subdivision and subdivision 7.
42.1 		Subd. 7.Limitations on an employee's right to reinstatement. An employee has no 
42.2 	greater right to reinstatement or to other benefits and conditions of employment than if the 
42.3 	employee had been continuously employed during the period of leave under this chapter. 
42.4 	An employer must be able to show that an employee would not otherwise have been 
42.5 	employed at the time reinstatement is requested in order to deny restoration to employment.
42.6 	(1) If an employee is laid off during the course of taking a leave under this chapter and 
42.7 	employment is terminated, the employer's responsibility to continue the leave, maintain 
42.8 	group health plan benefits, and restore the employee cease at the time the employee is laid 
42.9 	off, provided the employer has no continuing obligations under a collective bargaining 
42.10 	agreement or otherwise. An employer has the burden of proving that an employee would 
42.11 	have been laid off during the period of leave under this chapter and, therefore, would not 
42.12 	be entitled to restoration to a job slated for layoff when the employee's original position 
42.13 	would not meet the requirements of an equivalent position.
42.14 	(2) If a shift has been eliminated or overtime has been decreased, an employee would 
42.15 	not be entitled to return to work that shift or the original overtime hours upon restoration. 
42.16 	However, if a position on, for example, a night shift has been filled by another employee, 
42.17 	the employee is entitled to return to the same shift on which employed before taking leave 
42.18 	under this chapter.
42.19 	(3) If an employee was hired for a specific term or only to perform work on a discrete 
42.20 	project, the employer has no obligation to restore the employee if the employment term or 
42.21 	project is over and the employer would not otherwise have continued to employ the employee.
42.22 		Subd. 8.Remedies. (a) In addition to any other remedies available to an employee in 
42.23 	law or equity, an employer who violates the provisions of this section is liable to any 
42.24 	employee affected for:
42.25 	(1) damages equal to the amount of:
42.26 	(i) any and all damages recoverable by law;
42.27 	(ii) reasonable interest on the amount of damages awarded; and
42.28 	(iii) an additional amount as liquidated damages equal to the sum of the amount described 
42.29 	in item (i) and the interest described in item (ii), except that if an employer who has violated 
42.30 	the provisions of this section proves to the satisfaction of the court that the act or omission 
42.31 	which violated the provisions of this section was in good faith and that the employer had 
42.32 	reasonable grounds for believing that the act or omission was not a violation of the provisions 
43.1 	of this section, the court may, in the discretion of the court, reduce the amount of the liability 
43.2 	to the amount and interest determined under items (i) and (ii), respectively; and
43.3 	(2) such injunctive and other equitable relief as determined by a court or jury, including 
43.4 	employment, reinstatement, and promotion.
43.5 	(b) An action to recover damages or equitable relief prescribed in paragraph (a) may be 
43.6 	maintained against any employer in any federal or state court of competent jurisdiction by 
43.7 	any one or more employees for and on behalf of:
43.8 	(1) the employees; or
43.9 	(2) the employees and other employees similarly situated.
43.10 	Rule 23 of the Rules of Civil Procedure applies to this section.
43.11 	(c) The court in an action under this section must, in addition to any judgment awarded 
43.12 	to the plaintiff or plaintiffs, allow reasonable attorney fees, reasonable expert witness fees, 
43.13 	and other costs of the action to be paid by the defendant.
43.14 	(d) Nothing in this section shall be construed to allow an employee to recover damages 
43.15 	from an employer for the denial of benefits under this chapter by the department, unless the 
43.16 	employer unlawfully interfered with the application for benefits under subdivision 2.

43.17 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
43.18 	2025.

43.19 	Sec. 19. [268B.10] SUBSTITUTION OF A PRIVATE PLAN.
43.20 		Subdivision 1.Application for substitution. Employers may apply to the commissioner 
43.21 	for approval to meet their obligations under this chapter through the substitution of a private 
43.22 	plan that provides paid family, paid medical, or paid family and medical benefits. In order 
43.23 	to be approved as meeting an employer's obligations under this chapter, a private plan must 
43.24 	confer all of the same rights, protections, and benefits provided to employees under this 
43.25 	chapter, including but not limited to benefits under section 268B.04 and employment 
43.26 	protections under section 268B.09. Employers may apply for approval of private plans that 
43.27 	exceed the benefits provided to employees under this chapter. An employee covered by a 
43.28 	private plan under this section retains all applicable rights and remedies under section 
43.29 	268B.09.
43.30 		Subd. 2.Private plan requirements; medical benefit program. The commissioner, 
43.31 	in consultation with the commissioner of commerce, must approve an application for private 
43.32 	provision of the medical benefit program if the commissioner determines:
44.1 	(1) all of the employees of the employer are to be covered under the provisions of the 
44.2 	employer plan;
44.3 	(2) eligibility requirements for benefits and leave are no more restrictive than as provided 
44.4 	under this chapter;
44.5 	(3) the weekly benefits payable under the private plan for any week are at least equal to 
44.6 	the weekly benefit amount payable under this chapter, taking into consideration any coverage 
44.7 	with respect to concurrent employment by another employer;
44.8 	(4) the total number of weeks for which benefits are payable under the private plan is 
44.9 	at least equal to the total number of weeks for which benefits would have been payable 
44.10 	under this chapter;
44.11 	(5) no greater amount is required to be paid by employees toward the cost of benefits 
44.12 	under the employer plan than by this chapter;
44.13 	(6) wage replacement benefits are stated in the plan separately and distinctly from other 
44.14 	benefits;
44.15 	(7) the private plan will provide benefits and leave for any serious health condition or 
44.16 	pregnancy for which benefits are payable, and leave provided, under this chapter;
44.17 	(8) the private plan will impose no additional condition or restriction on the use of 
44.18 	medical benefits beyond those explicitly authorized by this chapter or regulations 
44.19 	promulgated pursuant to this chapter;
44.20 	(9) the private plan will allow any employee covered under the private plan who is 
44.21 	eligible to receive medical benefits under this chapter to receive medical benefits under the 
44.22 	employer plan; and
44.23 	(10) coverage will continue under the private plan while an employee remains employed 
44.24 	by the employer.
44.25 		Subd. 3.Private plan requirements; family benefit program. The commissioner, in 
44.26 	consultation with the commissioner of commerce, must approve an application for private 
44.27 	provision of the family benefit program if the commissioner determines:
44.28 	(1) all of the employees of the employer are to be covered under the provisions of the 
44.29 	employer plan;
44.30 	(2) eligibility requirements for benefits and leave are no more restrictive than as provided 
44.31 	under this chapter;
45.1 	(3) the weekly benefits payable under the private plan for any week are at least equal to 
45.2 	the weekly benefit amount payable under this chapter, taking into consideration any coverage 
45.3 	with respect to concurrent employment by another employer;
45.4 	(4) the total number of weeks for which benefits are payable under the private plan is 
45.5 	at least equal to the total number of weeks for which benefits would have been payable 
45.6 	under this chapter;
45.7 	(5) no greater amount is required to be paid by employees toward the cost of benefits 
45.8 	under the employer plan than by this chapter;
45.9 	(6) wage replacement benefits are stated in the plan separately and distinctly from other 
45.10 	benefits;
45.11 	(7) the private plan will provide benefits and leave for any care for a family member 
45.12 	with a serious health condition, bonding with a child, qualifying exigency, or safety leave 
45.13 	event for which benefits are payable, and leave provided, under this chapter;
45.14 	(8) the private plan will impose no additional condition or restriction on the use of family 
45.15 	benefits beyond those explicitly authorized by this chapter or regulations promulgated 
45.16 	pursuant to this chapter;
45.17 	(9) the private plan will allow any employee covered under the private plan who is 
45.18 	eligible to receive family benefits under this chapter to receive family benefits under the 
45.19 	employer plan; and
45.20 	(10) coverage will continue under the private plan while an employee remains employed 
45.21 	by the employer.
45.22 		Subd. 4.Surety bond requirement. If the private plan is in the form of self-insurance, 
45.23 	the employer shall file with its application for private provision of the medical benefit or 
45.24 	family benefit program a surety bond in an amount equal to the employer's annual premium 
45.25 	that it would otherwise be required to pay to the family and medical benefit insurance 
45.26 	account. The surety bond must be in a form approved by the commissioner and issued by 
45.27 	a surety company authorized to transact business in Minnesota.
45.28 		Subd. 5.Private plan requirements; timing of payment; intermittent leave 
45.29 	increments; and weekly benefit determination. (a) Private plan benefits under this section 
45.30 	may be paid to align with the employer's payroll cycle or according to the terms of the 
45.31 	approved private plan.
46.1 	(b) Intermittent leave under a private plan may be taken in the minimum increment the 
46.2 	employer offers to employees for other types of leave, not to exceed the eight-hour minimum 
46.3 	increment under section 268B.04, subdivision 6.
46.4 	(c) For purposes of determining the family and medical benefit amount and duration 
46.5 	under a private plan, the weekly benefit amount and duration must be based on the employee's 
46.6 	typical workweek and wages earned with the employer at the time of an application for 
46.7 	benefits or over the past 52-week calendar year, whichever calculation results in the highest 
46.8 	benefit amount for the employee. If an employer does not have complete wage information 
46.9 	for the full calendar year, the employer must accept an employee's certification of wage 
46.10 	credits, based upon the employee's records.
46.11 		Subd. 6.Use of private insurance products. Nothing in this section prohibits an 
46.12 	employer from meeting the requirements of a private plan through a private insurance 
46.13 	product. If the employer plan involves a private insurance product, that insurance product's 
46.14 	policy form must be approved by the commissioner of commerce and issued by an insurance 
46.15 	company authorized to transact insurance in this state.
46.16 		Subd. 7.Private plan approval and oversight fee. An employer with an approved 
46.17 	private plan is not required to pay premiums established under section 268B.14. An employer 
46.18 	with an approved private plan is responsible for a private plan approval and oversight fee 
46.19 	equal to $250 for employers with fewer than 50 employees, $500 for employers with 50 to 
46.20 	499 employees, and $1,000 for employers with 500 or more employees. The employer must 
46.21 	pay this fee (1) upon initial application for private plan approval, and (2) any time the 
46.22 	employer applies to amend the private plan. The commissioner must review and report on 
46.23 	the adequacy of this fee to cover private plan administrative costs annually beginning July 
46.24 	1, 2025, as part of the annual report established in section 268B.24.
46.25 		Subd. 8.Plan duration. A private plan under this section must be in effect for a period 
46.26 	of at least one year and, thereafter, continuously unless the commissioner finds that the 
46.27 	employer has given notice of withdrawal from the plan in a manner specified by the 
46.28 	commissioner in this section or rule. The plan may be withdrawn by the employer within 
46.29 	30 days of the effective date of any law increasing the benefit amounts or within 30 days 
46.30 	of the date of any change in the rate of premiums. If the plan is not withdrawn, it must be 
46.31 	administered to provide the increased benefit amount or change in the rate of the employee's 
46.32 	premium on the date of the increase or change.
46.33 		Subd. 9.Employer reimbursement. If an employer meeting the requirements of a 
46.34 	private plan through an insurance product under subdivision 6 has made advance payments 
47.1 	of benefits due under this chapter or has made payments to an employee in like manner as 
47.2 	wages during any period of family or medical leave for which the employee is entitled to 
47.3 	the benefits provided by this chapter, the employer is entitled to be reimbursed by the carrier 
47.4 	or third party administrator out of any benefits due or to become due for the family or 
47.5 	medical leave, if the claim for reimbursement is filed with the carrier prior to payment of 
47.6 	the benefits by the carrier.
47.7 		Subd. 10.Appeals. (a) An employer may appeal any adverse action regarding that 
47.8 	employer's application for private provision of the medical benefit or family benefit program, 
47.9 	in a manner specified by the commissioner.
47.10 	(b) An employee covered under a private plan has the same right to appeal to the state 
47.11 	under section 268B.04, subdivision 7, as any other employee. An employee covered under 
47.12 	a private plan has the right to request reconsideration of a decision under a private plan 
47.13 	made by an insurer, private plan administrator, or employer prior to exercising appeal rights 
47.14 	under section 268B.04.
47.15 		Subd. 11.Employees no longer covered. (a) An employee is no longer covered by an 
47.16 	approved private plan if a leave under this chapter occurs after the employment relationship 
47.17 	with the private plan employer ends, or if the commissioner revokes the approval of the 
47.18 	private plan.
47.19 	(b) An employee no longer covered by an approved private plan is, if otherwise eligible, 
47.20 	immediately entitled to benefits under this chapter to the same extent as though there had 
47.21 	been no approval of the private plan.
47.22 		Subd. 12.Posting of notice regarding private plan. An employer with a private plan 
47.23 	must provide a notice prepared by or approved by the commissioner regarding the private 
47.24 	plan consistent with section 268B.26.
47.25 		Subd. 13.Amendment. (a) The commissioner must approve any amendment to a private 
47.26 	plan adjusting the provisions thereof, if the commissioner determines:
47.27 	(1) that the plan, as amended, will conform to the standards set forth in this chapter; and
47.28 	(2) that notice of the amendment has been delivered to all affected employees at least 
47.29 	ten days before the submission of the amendment.
47.30 	(b) Any amendments approved under this subdivision are effective on the date of the 
47.31 	commissioner's approval, unless the commissioner and the employer agree on a later date.
47.32 		Subd. 14.Successor employer. A private plan in effect at the time a successor acquires 
47.33 	the employer organization, trade, or business, or substantially all the assets thereof, or a 
48.1 	distinct and severable portion of the organization, trade, or business, and continues its 
48.2 	operation without substantial reduction of personnel resulting from the acquisition, must 
48.3 	continue the approved private plan and must not withdraw the plan without a specific request 
48.4 	for withdrawal in a manner and at a time specified by the commissioner. A successor may 
48.5 	terminate a private plan with notice to the commissioner and within 90 days from the date 
48.6 	of the acquisition.
48.7 		Subd. 15.Revocation of approval by commissioner. (a) The commissioner may 
48.8 	terminate any private plan if the commissioner determines the employer:
48.9 	(1) failed to pay benefits;
48.10 	(2) failed to pay benefits in a timely manner, consistent with the requirements of this 
48.11 	chapter;
48.12 	(3) failed to submit reports as required by this chapter or rule adopted under this chapter; 
48.13 	or
48.14 	(4) otherwise failed to comply with this chapter or rule adopted under this chapter.
48.15 	(b) The commissioner must give notice of the intention to terminate a plan to the employer 
48.16 	at least ten days before taking any final action. The notice must state the effective date and 
48.17 	the reason for the termination.
48.18 	(c) The employer may, within ten days from mailing or personal service of the notice, 
48.19 	file an appeal to the commissioner in the time, manner, method, and procedure provided by 
48.20 	the commissioner under subdivision 7.
48.21 	(d) The payment of benefits must not be delayed during an employer's appeal of the 
48.22 	revocation of approval of a private plan.
48.23 	(e) If the commissioner revokes approval of an employer's private plan, that employer 
48.24 	is ineligible to apply for approval of another private plan for a period of three years, beginning 
48.25 	on the date of revocation.
48.26 		Subd. 16. Employer penalties. (a) The commissioner may assess the following monetary 
48.27 	penalties against an employer with an approved private plan found to have violated this 
48.28 	chapter:
48.29 	(1) $1,000 for the first violation; and
48.30 	(2) $2,000 for the second, and each successive violation.
49.1 	(b) The commissioner must waive collection of any penalty if the employer corrects the 
49.2 	violation within 30 days of receiving a notice of the violation and the notice is for a first 
49.3 	violation.
49.4 	(c) The commissioner may waive collection of any penalty if the commissioner determines 
49.5 	the violation to be an inadvertent error by the employer.
49.6 	(d) Monetary penalties collected under this section shall be deposited in the family and 
49.7 	medical benefit insurance account.
49.8 	(e) Assessment of penalties under this subdivision may be appealed as provided by the 
49.9 	commissioner under subdivision 7.
49.10 		Subd. 17.Reports, information, and records. Employers with an approved private 
49.11 	plan must maintain all reports, information, and records as relating to the private plan and 
49.12 	claims for a period of six years from creation and provide to the commissioner upon request.
49.13 		Subd. 18.Audit and investigation. The commissioner may investigate and audit plans 
49.14 	approved under this section both before and after the plans are approved.

49.15 	EFFECTIVE DATE. This section is effective January 1, 2024.

49.16 	Sec. 20. [268B.11] SELF-EMPLOYED AND INDEPENDENT CONTRACTOR 
49.17 	ELECTION OF COVERAGE.
49.18 		Subdivision 1.Election of coverage. (a) A self-employed individual or independent 
49.19 	contractor may file with the commissioner by electronic transmission in a format prescribed 
49.20 	by the commissioner an application to be entitled to benefits under this chapter for a period 
49.21 	not less than 104 consecutive calendar weeks. Upon the approval of the commissioner, sent 
49.22 	by United States mail or electronic transmission, the individual is entitled to benefits under 
49.23 	this chapter beginning the calendar quarter after the date of approval or beginning in a later 
49.24 	calendar quarter if requested by the self-employed individual or independent contractor. 
49.25 	The individual ceases to be entitled to benefits as of the first day of January of any calendar 
49.26 	year only if, at least 30 calendar days before the first day of January, the individual has filed 
49.27 	with the commissioner by electronic transmission in a format prescribed by the commissioner 
49.28 	a notice to that effect.
49.29 	(b) The commissioner may terminate any application approved under this section with 
49.30 	30 calendar days' notice sent by United States mail or electronic transmission if the 
49.31 	self-employed individual is delinquent on any premiums due under this chapter. If an 
49.32 	approved application is terminated in this manner during the first 104 consecutive calendar 
50.1 	weeks of election, the self-employed individual remains obligated to pay the premium under 
50.2 	subdivision 3 for the remainder of that 104-week period.
50.3 		Subd. 2.Application. A self-employed individual who applies for coverage under this 
50.4 	section must provide the commissioner with (1) the amount of the individual's net earnings 
50.5 	from self-employment, if any, from the two most recent taxable years and all tax documents 
50.6 	necessary to prove the accuracy of the amounts reported, and (2) any other documentation 
50.7 	the commissioner requires. A self-employed individual who is covered under this chapter 
50.8 	must annually provide the commissioner with the amount of the individual's net earnings 
50.9 	from self-employment within 30 days of filing a federal income tax return.
50.10 		Subd. 3.Premium. A self-employed individual who elects to receive coverage under 
50.11 	this chapter must annually pay a premium equal to one-half the percentage in section 
50.12 	268B.14, subdivision 6, clause (1), times the lesser of:
50.13 	(1) the individual's self-employment premium base; or
50.14 	(2) the maximum earnings subject to the FICA Old-Age, Survivors, and Disability 
50.15 	Insurance tax.
50.16 		Subd. 4.Benefits. Notwithstanding anything to the contrary, a self-employed individual 
50.17 	who has applied to and been approved for coverage by the commissioner under this section 
50.18 	is entitled to benefits on the same basis as an employee under this chapter, except that a 
50.19 	self-employed individual's weekly benefit amount under section 268B.04, subdivision 1, 
50.20 	must be calculated as a percentage of the self-employed individual's self-employment 
50.21 	premium base, rather than wages.

50.22 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
50.23 	2025.

50.24 	Sec. 21. [268B.12] WAGE REPORTING.
50.25 		Subdivision 1.Wage detail report. (a) Each employer must submit, under the employer 
50.26 	premium account described in section 268B.13,  a quarterly wage detail report by electronic 
50.27 	transmission, in a format prescribed by the commissioner. The report must include for each 
50.28 	employee in covered employment during the calendar quarter, the employee's name, the 
50.29 	total wages paid to the employee, and total number of paid hours worked. For employees 
50.30 	exempt from the definition of employee in section 177.23, subdivision 7, clause (6), the 
50.31 	employer must report 40 hours worked for each week any duties were performed by a 
50.32 	full-time employee and must report a reasonable estimate of the hours worked for each 
50.33 	week duties were performed by a part-time employee. In addition, the wage detail report 
51.1 	must include the number of employees employed during the payroll period that includes 
51.2 	the 12th day of each calendar month and, if required by the commissioner, the report must 
51.3 	be broken down by business location and separate business unit. The report is due and must 
51.4 	be received by the commissioner on or before the last day of the month following the end 
51.5 	of the calendar quarter. The commissioner may delay the due date on a specific calendar 
51.6 	quarter in the event the department is unable to accept wage detail reports electronically.
51.7 	(b) The employer may report the wages paid to the next lower whole dollar amount.
51.8 	(c) An employer need not include the name of the employee or other required information 
51.9 	on the wage detail report if disclosure is specifically exempted from being reported by 
51.10 	federal law.
51.11 	(d) A wage detail report must be submitted for each calendar quarter even though no 
51.12 	wages were paid, unless the business has been terminated.
51.13 		Subd. 2.Electronic transmission of report required. Each employer must submit the 
51.14 	quarterly wage detail report by electronic transmission in a format prescribed by the 
51.15 	commissioner. The commissioner has the discretion to accept wage detail reports that are 
51.16 	submitted by any other means or the commissioner may return the report submitted by other 
51.17 	than electronic transmission to the employer, and reports returned are considered as not 
51.18 	submitted and the late fees under subdivision 3 may be imposed.
51.19 		Subd. 3.Failure to timely file report; late fees. (a) Any employer that fails to submit 
51.20 	the quarterly wage detail report when due must pay a late fee of $10 per employee, computed 
51.21 	based upon the highest of:
51.22 	(1) the number of employees reported on the last wage detail report submitted;
51.23 	(2) the number of employees reported in the corresponding quarter of the prior calendar 
51.24 	year; or
51.25 	(3) if no wage detail report has ever been submitted, the number of employees listed at 
51.26 	the time of employer registration.
51.27 	The late fee is canceled if the wage detail report is received within 30 calendar days after 
51.28 	a demand for the report is sent to the employer by mail or electronic transmission. A late 
51.29 	fee assessed an employer may not be canceled more than twice each 12 months. The amount 
51.30 	of the late fee assessed may not be less than $250.
51.31 	(b) If the wage detail report is not received in a manner and format prescribed by the 
51.32 	commissioner within 30 calendar days after demand is sent under paragraph (a), the late 
52.1 	fee assessed under paragraph (a) doubles and a renewed demand notice and notice of the 
52.2 	increased late fee will be sent to the employer by mail or electronic transmission.
52.3 	(c) Late fees due under this subdivision may be canceled, in whole or in part, under 
52.4 	section 268B.16.
52.5 		Subd. 4.Missing or erroneous information. (a) Any employer that submits the wage 
52.6 	detail report, but fails to include all required employee information or enters erroneous 
52.7 	information, may be subject to an administrative service fee of $25 for each employee for 
52.8 	whom the information is partially missing or erroneous.
52.9 	(b) Any employer that submits the wage detail report, but fails to include an employee, 
52.10 	may be subject to an administrative service fee equal to two percent of the total wages for 
52.11 	each employee for whom the information is completely missing.
52.12 	(c) An employer shall not be subject to any penalty under this section upon a reasonable 
52.13 	showing that the employer's act or omission that violated this section was in good faith or 
52.14 	that the employer had reasonable grounds for believing that the act was not a violation of 
52.15 	this section.
52.16 		Subd. 5.Fees. The fees provided for in subdivisions 3 and 4 are in addition to interest 
52.17 	and other penalties imposed by this chapter and are collected in the same manner as 
52.18 	delinquent taxes and credited to the family and medical benefit insurance account.

52.19 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
52.20 	2025.

52.21 	Sec. 22. [268B.13] EMPLOYER PREMIUM ACCOUNTS.
52.22 	The commissioner must maintain a premium account for each employer, except for an 
52.23 	employer with an approved private plan under section 268B.10. The commissioner must 
52.24 	assess the premium account for all the premiums due under section 268B.14, and credit the 
52.25 	family and medical benefit insurance account with all premiums paid.

52.26 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
52.27 	2025.

52.28 	Sec. 23. [268B.14] PREMIUMS.
52.29 		Subdivision 1.Payments. (a) Family and medical leave premiums accrue and become 
52.30 	payable by each employer, except for an employer with an approved private plan under 
53.1 	section 268B.10, for each calendar year on the taxable wages that the employer paid to 
53.2 	employees in covered employment.
53.3 	Each employer must pay premiums quarterly, at the premium rate defined under this 
53.4 	section, on the taxable wages paid to each employee. The commissioner must compute the 
53.5 	premium due from the wage detail report required under section 268B.12 and notify the 
53.6 	employer of the premium due. The premiums must be paid to the family and medical benefit 
53.7 	insurance account and must be received by the department on or before the last day of the 
53.8 	month following the end of the calendar quarter.
53.9 	(b) If for any reason the wages on the wage detail report under section 268B.12 are 
53.10 	adjusted for any quarter, the commissioner must recompute the premiums due for that quarter 
53.11 	and assess the employer for any amount due or credit the employer as appropriate.
53.12 		Subd. 2.Payments by electronic payment required. (a) Every employer must make 
53.13 	any payments due under this chapter by electronic payment.
53.14 	(b) All third-party processors, paying on behalf of a client company, must make any 
53.15 	payments due under this chapter by electronic payment.
53.16 	(c) Regardless of paragraph (a) or (b), the commissioner has the discretion to accept 
53.17 	payment by other means.
53.18 		Subd. 3.Employee charge back. Notwithstanding section 177.24, subdivision 4, or 
53.19 	181.06, subdivision 1, employers must pay a minimum of 50 percent of the annual premiums 
53.20 	paid under this section. Employees, through a deduction in their wages to the employer, 
53.21 	must pay the remaining portion, if any, of the premium not paid by the employer. Such 
53.22 	deductions for any given employee must be in equal proportion to the premiums paid based 
53.23 	on the wages of that employee, and all employees of an employer must be subject to the 
53.24 	same percentage deduction. Deductions under this section must not cause an employee's 
53.25 	wage, after the deduction, to fall below the rate required to be paid to the worker by law, 
53.26 	including any applicable statute, regulation, rule, ordinance, government resolution or policy, 
53.27 	contract, or other legal authority, whichever rate of pay is greater.
53.28 		Subd. 4.Wages and payments subject to premium. The maximum wages subject to 
53.29 	premium in a calendar year is equal to the maximum earnings in that year subject to the 
53.30 	FICA Old-Age, Survivors, and Disability Insurance tax.
53.31 		Subd. 5.Small business wage exclusion. (a) For employers with fewer than 30 
53.32 	employees, the amount of wages on which the employer half of the quarterly premium is 
53.33 	required is reduced by the lesser of:
54.1 	(1) $12,500 multiplied by the number of employees; or
54.2 	(2) $120,000.
54.3 	(b) For each employee over 20 employees, the exclusion is reduced by $12,000.
54.4 	(c) The premium paid by the employer as a result of the reduction allowed under this 
54.5 	subdivision must not be less than zero.
54.6 	(d) The reduction in premiums paid by the employer is for the sole benefit of the employer 
54.7 	and does not relieve the employer from deducting the employee portion of the premium.
54.8 		Subd. 6.Annual premium rates. The premium rates beginning July 1, 2025, shall be 
54.9 	as follows:
54.10 	(1) for both family and medical benefit programs, 0.7 percent;
54.11 	(2) for only the medical benefit program and with an approved private plan for the family 
54.12 	benefit program, 0.57 percent; and
54.13 	(3) for only the family benefit program and with an approved private plan for the medical 
54.14 	benefit program, 0.13 percent.
54.15 		Subd. 7.Premium rate adjustments. (a) Beginning July 1, 2026, and by July 31 of 
54.16 	each year thereafter, the commissioner must adjust the annual premium rates using the 
54.17 	formula in paragraph (b).
54.18 	(b) To calculate the employer rates for a calendar year, the commissioner must:
54.19 	(1) multiply 1.45 times the amount disbursed from the family and medical benefit 
54.20 	insurance account for the 52-week period ending September 30 of the prior year;
54.21 	(2) subtract the amount in the family and medical benefit insurance account on that 
54.22 	September 30 from the resulting figure;
54.23 	(3) divide the resulting figure by the total wages in covered employment of employees 
54.24 	of employers without approved private plans under section 268B.10 for either the family 
54.25 	or medical benefit program. For employers with an approved private plan for either the 
54.26 	medical benefit program or the family benefit program, but not both, count only the 
54.27 	proportion of wages in covered employment associated with the program for which the 
54.28 	employer does not have an approved private plan; and
54.29 	(4) round the resulting figure down to the nearest one-hundredth of one percent.
55.1 	(c) The commissioner must apportion the premium rate between the family and medical 
55.2 	benefit programs based on the relative proportion of expenditures for each program during 
55.3 	the preceding year.
55.4 		Subd. 8.Deposit of premiums. All premiums collected under this section must be 
55.5 	deposited into the family and medical benefit insurance account.
55.6 		Subd. 9.Nonpayment of premiums by employer. The failure of an employer to pay 
55.7 	premiums does not impact the right of an employee to benefits, or any other right, under 
55.8 	this chapter.

55.9 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
55.10 	2025.

55.11 	Sec. 24. [268B.145] INCOME TAX WITHHOLDING.
55.12 	If the Internal Revenue Service determines that benefits are subject to federal income 
55.13 	tax, and an applicant elects to have federal income tax deducted and withheld from the 
55.14 	applicant's benefits, the commissioner must deduct and withhold the amount specified in 
55.15 	the Internal Revenue Code in a manner consistent with state law.

55.16 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
55.17 	2025.

55.18 	Sec. 25. [268B.15] COLLECTION OF PREMIUMS.
55.19 		Subdivision 1.Amount computed presumed correct. Any amount due from an 
55.20 	employer, as computed by the commissioner, is presumed to be correctly determined and 
55.21 	assessed, and the burden is upon the employer to show its incorrectness. A statement by the 
55.22 	commissioner of the amount due is admissible in evidence in any court or administrative 
55.23 	proceeding and is prima facie evidence of the facts in the statement.
55.24 		Subd. 2.Priority of payments. (a) Any payment received from an employer must be 
55.25 	applied in the following order:
55.26 	(1) family and medical leave premiums under this chapter; then
55.27 	(2) interest on past due premiums; then
55.28 	(3) penalties, late fees, administrative service fees, and costs.
55.29 	(b) Paragraph (a) is the priority used for all payments received from an employer, 
55.30 	regardless of how the employer may designate the payment to be applied, except when:
56.1 	(1) there is an outstanding lien and the employer designates that the payment made 
56.2 	should be applied to satisfy the lien;
56.3 	(2) the payment is specifically designated by the employer to be applied to an outstanding 
56.4 	overpayment of benefits of an applicant;
56.5 	(3) a court or administrative order directs that the payment be applied to a specific 
56.6 	obligation;
56.7 	(4) a preexisting payment plan provides for the application of payment; or
56.8 	(5) the commissioner, under the compromise authority of section 268B.16, agrees to 
56.9 	apply the payment to a different priority.
56.10 		Subd. 3.Estimating the premium due. Only if an employer fails to make all necessary 
56.11 	records available for an audit under section 268B.21 and the commissioner has reason to 
56.12 	believe the employer has not reported all the required wages on the quarterly wage detail 
56.13 	reports, may the commissioner then estimate the amount of premium due and assess the 
56.14 	employer the estimated amount due.
56.15 		Subd. 4.Costs. (a) Any employer and any applicant subject to section 268B.185, 
56.16 	subdivision 2, that fails to pay any amount when due under this chapter is liable for any 
56.17 	filing fees, recording fees, sheriff fees, costs incurred by referral to any public or private 
56.18 	collection agency, or litigation costs, including attorney fees, incurred in the collection of 
56.19 	the amounts due.
56.20 	(b) If any tendered payment of any amount due is not honored when presented to a 
56.21 	financial institution for payment, any costs assessed the department by the financial institution 
56.22 	and a fee of $25 must be assessed to the person.
56.23 	(c) Costs and fees collected under this subdivision are credited to the enforcement account 
56.24 	under section 268B.185, subdivision 3.
56.25 		Subd. 5.Interest on amounts past due. If any amounts due from an employer under 
56.26 	this chapter are not received on the date due, the commissioner must assess interest on any 
56.27 	amount that remains unpaid. Interest is assessed at the rate of one percent per month or any 
56.28 	part of a month. Interest is not assessed on unpaid interest. Interest collected under this 
56.29 	subdivision is credited to the account.
56.30 		Subd. 6.Interest on judgments. Regardless of section 549.09, if a judgment is entered 
56.31 	upon any past due amounts from an employer under this chapter, the unpaid judgment bears 
56.32 	interest at the rate specified in subdivision 5 until the date of payment.
57.1 		Subd. 7.Credit adjustments; refunds. (a) If an employer makes an application for a 
57.2 	credit adjustment of any amount paid under this chapter within four years of the date that 
57.3 	the payment was due, in a manner and format prescribed by the commissioner, and the 
57.4 	commissioner determines that the payment or any portion thereof was erroneous, the 
57.5 	commissioner must make an adjustment and issue a credit without interest. If a credit cannot 
57.6 	be used, the commissioner must refund, without interest, the amount erroneously paid. The 
57.7 	commissioner, on the commissioner's own motion, may make a credit adjustment or refund 
57.8 	under this subdivision.
57.9 	(b) Any refund returned to the commissioner is considered unclaimed property under 
57.10 	chapter 345.
57.11 	(c) If a credit adjustment or refund is denied in whole or in part, a determination of denial 
57.12 	must be sent to the employer by mail or electronic transmission. The determination of denial 
57.13 	is final unless an employer files an appeal within 20 calendar days after sending. Proceedings 
57.14 	on the appeal are conducted in accordance with section 268B.08.
57.15 	(d) If an employer receives a credit adjustment or refund under this section, the employer 
57.16 	must determine the amount of any overpayment attributable to a deduction from employee 
57.17 	wages under section 268B.14, subdivision 3, and return any amount erroneously deducted 
57.18 	to each affected employee.
57.19 		Subd. 8.Priorities under legal dissolutions or distributions. In the event of any 
57.20 	distribution of an employer's assets according to an order of any court, including any 
57.21 	receivership, assignment for benefit of creditors, adjudicated insolvency, or similar 
57.22 	proceeding, premiums then or thereafter due must be paid in full before all other claims 
57.23 	except claims for wages of not more than $1,000 per former employee, earned within six 
57.24 	months of the commencement of the proceedings. In the event of an employer's adjudication 
57.25 	in bankruptcy under federal law, premiums then or thereafter due are entitled to the priority 
57.26 	provided in that law for taxes due in any state.

57.27 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
57.28 	2025.

57.29 	Sec. 26. [268B.155] CHILD SUPPORT DEDUCTION FROM BENEFITS.
57.30 		Subdivision 1.Definitions. As used in this section:
57.31 	(1) "child support agency" means the public agency responsible for child support 
57.32 	enforcement, including federally approved comprehensive Tribal IV-D programs; and
58.1 	(2) "child support obligations" means obligations that are being enforced by a child 
58.2 	support agency in accordance with a plan described in United States Code, title 42, sections 
58.3 	454 and 455 of the Social Security Act that has been approved by the secretary of health 
58.4 	and human services under part D of title IV of the Social Security Act. This does not include 
58.5 	any type of spousal maintenance or foster care payments.
58.6 		Subd. 2.Notice upon application. In an application for family or medical leave benefits, 
58.7 	the applicant must disclose if child support obligations are owed and, if so, in what state 
58.8 	and county. If child support obligations are owed, the commissioner must, if the applicant 
58.9 	establishes a benefit account, notify the child support agency.
58.10 		Subd. 3.Withholding of benefit. The commissioner must deduct and withhold from 
58.11 	any family or medical leave benefits payable to an applicant who owes child support 
58.12 	obligations:
58.13 	(1) the amount required under a proper order of a court or administrative agency; or
58.14 	(2) if clause (1) is not applicable, the amount determined under an agreement under 
58.15 	United States Code, title 42, section 454 (20)(B)(i), of the Social Security Act; or
58.16 	(3) if clause (1) or (2) is not applicable, the amount specified by the applicant.
58.17 		Subd. 4.Payment. Any amount deducted and withheld must be paid to the child support 
58.18 	agency, must for all purposes be treated as if it were paid to the applicant as family or 
58.19 	medical leave benefits and paid by the applicant to the child support agency in satisfaction 
58.20 	of the applicant's child support obligations.
58.21 		Subd. 5.Payment of costs. The child support agency must pay the costs incurred by 
58.22 	the commissioner in the implementation and administration of this section and sections 
58.23 	518A.50 and 518A.53.

58.24 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
58.25 	2025.

58.26 	Sec. 27. [268B.16] COMPROMISE.
58.27 	(a) The commissioner may compromise in whole or in part any action, determination, 
58.28 	or decision that affects only an employer and not an applicant. This paragraph applies if it 
58.29 	is determined by a court of law, or a confession of judgment, that an applicant, while 
58.30 	employed, wrongfully took from the employer $500 or more in money or property.
58.31 	(b) The commissioner may at any time compromise any premium or reimbursement due 
58.32 	from an employer under this chapter.
59.1 	(c) Any compromise involving an amount over $10,000 must be authorized by an attorney 
59.2 	licensed to practice law in Minnesota who is an employee of the department designated by 
59.3 	the commissioner for that purpose.
59.4 	(d) Any compromise must be in the best interest of the state of Minnesota.

59.5 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
59.6 	2025.

59.7 	Sec. 28. [268B.17] ADMINISTRATIVE COSTS.
59.8 	From July 1, 2025, through December 31, 2025, the commissioner may spend up to 
59.9 	seven percent of projected benefit payments during the period for the administration of this 
59.10 	chapter. Beginning January 1, 2026, and each calendar year thereafter, the commissioner 
59.11 	may spend up to seven percent of projected benefit payments for that calendar year for the 
59.12 	administration of this chapter. The department may enter into interagency agreements with 
59.13 	the Department of Labor and Industry, including agreements to transfer funds, subject to 
59.14 	the limit in this section, for the Department of Labor and Industry to fulfill its enforcement 
59.15 	authority of this chapter.

59.16 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
59.17 	2025.

59.18 	Sec. 29. [268B.18] PUBLIC OUTREACH.
59.19 	Beginning in fiscal year 2025, the commissioner must use at least 0.5 percent of projected 
59.20 	benefit payments under section 268B.17 for the purpose of outreach, education, and technical 
59.21 	assistance for employees, employers, and self-employed individuals eligible to elect coverage 
59.22 	under section 268B.11. The department may enter into interagency agreements with the 
59.23 	Department of Labor and Industry, including agreements to transfer funds, subject to the 
59.24 	limit in section 268B.17, to accomplish the requirements of this section. At least one-half 
59.25 	of the amount spent under this section must be used for grants to community-based groups.

59.26 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
59.27 	2025.

59.28 	Sec. 30. [268B.185] BENEFIT OVERPAYMENTS.
59.29 		Subdivision 1.Repaying an overpayment. (a) Any applicant who (1) because of a 
59.30 	determination or amended determination issued under this chapter, or (2) because of a 
59.31 	benefit law judge's decision under section 268B.08, has received any family or medical 
60.1 	leave benefits that the applicant was held not entitled to, is overpaid the benefits and must 
60.2 	promptly repay the benefits to the family and medical benefit insurance account.
60.3 	(b) If the applicant fails to repay the benefits overpaid, including any penalty and interest 
60.4 	assessed under subdivisions 2 and 4, the total due may be collected by the methods allowed 
60.5 	under state and federal law.
60.6 		Subd. 2.Overpayment because of misrepresentation. (a) An applicant has committed 
60.7 	misrepresentation if the applicant is overpaid benefits by making an intentional false 
60.8 	statement or representation in an effort to fraudulently collect benefits. Overpayment because 
60.9 	of misrepresentation does not occur where there is unintentional mistake with a good faith 
60.10 	belief as to the eligibility or correctness of the statement or representation.
60.11 	(b) A determination of overpayment penalty must state the methods of collection the 
60.12 	commissioner may use to recover the overpayment, penalty, and interest assessed. Money 
60.13 	received in repayment of overpaid benefits, penalties, and interest is first applied to the 
60.14 	benefits overpaid, second to the penalty amount due, and third to any interest due.
60.15 	(c) The department is authorized to issue a determination of overpayment penalty under 
60.16 	this subdivision within 12 months of the establishment of the benefit account upon which 
60.17 	the benefits were obtained through misrepresentation.
60.18 		Subd. 3.Family and medical benefit insurance enforcement account created. The 
60.19 	family and medical benefit insurance enforcement account is created in the state treasury. 
60.20 	Any penalties and interest collected under this section shall be deposited into the account 
60.21 	under this subdivision and shall be used only for the purposes of administering and enforcing 
60.22 	this chapter. Only the commissioner may authorize expenditures from the account under 
60.23 	this subdivision.
60.24 		Subd. 4.Interest. For any family and medical leave benefits obtained by 
60.25 	misrepresentation, and any penalty amounts assessed under subdivision 2, the commissioner 
60.26 	must assess interest on any amount that remains unpaid beginning 30 calendar days after 
60.27 	the date of a determination of overpayment penalty. Interest is assessed at the rate of six 
60.28 	percent per year. A determination of overpayment penalty must state that interest will be 
60.29 	assessed. Interest is not assessed on unpaid interest. Interest collected under this subdivision 
60.30 	is credited to the family and medical benefit insurance enforcement account.
60.31 		Subd. 5.Offset of benefits. An employee may offset from any future family and medical 
60.32 	leave benefits otherwise payable the amount of an overpayment. No single offset may exceed 
60.33 	20 percent of the amount of the payment from which the offset is made.
61.1 		Subd. 6.Cancellation of overpayments. (a) If family and medical leave benefits 
61.2 	overpayments are not repaid or offset from subsequent benefits within three years after the 
61.3 	date of the determination or decision holding the applicant overpaid, the commissioner must 
61.4 	cancel the overpayment balance, and no administrative or legal proceedings may be used 
61.5 	to enforce collection of those amounts.
61.6 	(b) The commissioner may cancel at any time any overpayment, including penalties and 
61.7 	interest that the commissioner determines is uncollectible because of death or bankruptcy.
61.8 		Subd. 7.Collection of overpayments. (a) The commissioner has discretion regarding 
61.9 	the recovery of any overpayment for reasons other than misrepresentation. Regardless of 
61.10 	any law to the contrary, the commissioner is not required to refer any overpayment for 
61.11 	reasons other than misrepresentation to a public or private collection agency, including 
61.12 	agencies of this state.
61.13 	(b) Amounts overpaid for reasons other than misrepresentation are not considered a 
61.14 	"debt" to the state of Minnesota for purposes of any reporting requirements to the 
61.15 	commissioner of management and budget.
61.16 	(c) A pending appeal under section 268B.08 does not suspend the assessment of interest, 
61.17 	penalties, or collection of an overpayment.
61.18 	(d) Section 16A.626 applies to the repayment by an applicant of any overpayment, 
61.19 	penalty, or interest.
61.20 	(e) In any case where the commissioner or the department has probable cause that any 
61.21 	applicant, employer, or other person has fraudulently obtained benefits, the commissioner 
61.22 	or the department must report the matter to the county attorney of jurisdiction for prosecution.

61.23 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
61.24 	2025.

61.25 	Sec. 31. [268B.19] EMPLOYER MISCONDUCT; PENALTY.
61.26 	(a) The commissioner must penalize an employer if that employer or any employee, 
61.27 	officer, or agent of that employer is in collusion with any applicant for the purpose of 
61.28 	assisting the applicant in receiving benefits fraudulently. The penalty is $500 or the amount 
61.29 	of benefits determined to be overpaid, whichever is greater.
61.30 	(b) The commissioner must penalize an employer if that employer or any employee, 
61.31 	officer, or agent of that employer:
61.32 	(1) made a false statement or representation knowing it to be false;
62.1 	(2) made a false statement or representation without a good-faith belief as to the 
62.2 	correctness of the statement or representation; or
62.3 	(3) knowingly failed to disclose a material fact.
62.4 	(c) The penalty is the greater of $500 or 50 percent of the following resulting from the 
62.5 	employer's action:
62.6 	(1) the amount of any overpaid benefits to an applicant;
62.7 	(2) the amount of benefits not paid to an applicant that would otherwise have been paid; 
62.8 	or
62.9 	(3) the amount of any payment required from the employer under this chapter that was 
62.10 	not paid.
62.11 	(d) Penalties must be paid within 30 calendar days of issuance of the determination of 
62.12 	penalty and credited to the family and medical benefit insurance account.
62.13 	(e) The determination of penalty is final unless the employer files an appeal within 30 
62.14 	calendar days after the sending of the determination of penalty to the employer by United 
62.15 	States mail or electronic transmission.

62.16 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
62.17 	2025.

62.18 	Sec. 32. [268B.21] RECORDS; AUDITS.
62.19 		Subdivision 1.Employer records; audits. (a) Each employer must keep true and accurate 
62.20 	records on individuals performing services for the employer, containing the information 
62.21 	the commissioner may require under this chapter. The records must be kept for a period of 
62.22 	not less than four years in addition to the current calendar year.
62.23 	(b) For the purpose of administering this chapter, the commissioner has the power to 
62.24 	audit, examine, or cause to be supplied or copied, any books, correspondence, papers, 
62.25 	records, or memoranda that are the property of, or in the possession of, an employer or any 
62.26 	other person at any reasonable time and as often as may be necessary. Subpoenas may be 
62.27 	issued under section 268B.22 as necessary, for an audit.
62.28 	(c) An employer or other person that refuses to allow an audit of its records by the 
62.29 	department or that fails to make all necessary records available for audit in the state upon 
62.30 	request of the commissioner may be assessed an administrative penalty of $500. The penalty 
62.31 	collected is credited to the family and medical benefit insurance account.
63.1 	(d) An employer, or other person, that fails to provide a weekly breakdown of money 
63.2 	earned by an applicant upon request of the commissioner, information necessary for the 
63.3 	detection of applicant misrepresentation under section 268B.185, subdivision 2, may be 
63.4 	assessed an administrative penalty of $100. Any notice requesting a weekly breakdown 
63.5 	must clearly state that a $100 penalty may be assessed for failure to provide the information. 
63.6 	The penalty collected is credited to the family and medical benefit insurance account.
63.7 		Subd. 2.Department records; destruction. (a) The commissioner may make summaries, 
63.8 	compilations, duplications, or reproductions of any records pertaining to this chapter that 
63.9 	the commissioner considers advisable for the preservation of the information.
63.10 	(b) Regardless of any law to the contrary, the commissioner may destroy any records 
63.11 	that are no longer necessary for the administration of this chapter. In addition, the 
63.12 	commissioner may destroy any record from which the information has been electronically 
63.13 	captured and stored.

63.14 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
63.15 	2025.

63.16 	Sec. 33. [268B.22] SUBPOENAS; OATHS.
63.17 	(a) The commissioner or benefit judge has authority to administer oaths and affirmations, 
63.18 	take depositions, certify to official acts, and issue subpoenas to compel the attendance of 
63.19 	individuals and the production of documents and other personal property necessary in 
63.20 	connection with the administration of this chapter.
63.21 	(b) Individuals subpoenaed, other than applicants or officers and employees of an 
63.22 	employer that is the subject of the inquiry, are paid witness fees the same as witness fees 
63.23 	in civil actions in district court. The fees need not be paid in advance.
63.24 	(c) The subpoena is enforceable through the district court in Ramsey County.

63.25 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
63.26 	2025.

63.27 	Sec. 34. [268B.23] LIEN; LEVY; SETOFF; AND CIVIL ACTION.
63.28 		Subdivision 1.Lien. (a) Any amount due under this chapter, from an applicant or an 
63.29 	employer, becomes a lien upon all the property, within this state, both real and personal, of 
63.30 	the person liable, from the date of assessment. For the purposes of this section, "date of 
63.31 	assessment" means the date the obligation was due.
64.1 	(b) The lien is not enforceable against any purchaser, mortgagee, pledgee, holder of a 
64.2 	Uniform Commercial Code security interest, mechanic's lien, or judgment lien creditor, 
64.3 	until a notice of lien has been filed with the county recorder of the county where the property 
64.4 	is situated, or in the case of personal property belonging to a nonresident person in the Office 
64.5 	of the Secretary of State. When the notice of lien is filed with the county recorder, the fee 
64.6 	for filing and indexing is as provided in sections 272.483 and 272.484.
64.7 	(c) Notices of liens, lien renewals, and lien releases, in a form prescribed by the 
64.8 	commissioner, may be filed with the county recorder or the secretary of state by mail, 
64.9 	personal delivery, or electronic transmission into the computerized filing system of the 
64.10 	secretary of state. The secretary of state must, on any notice filed with that office, transmit 
64.11 	the notice electronically to the appropriate county recorder. The filing officer, whether the 
64.12 	county recorder or the secretary of state, must endorse and index a printout of the notice as 
64.13 	if the notice had been mailed or delivered.
64.14 	(d) County recorders and the secretary of state must enter information on lien notices, 
64.15 	renewals, and releases into the central database of the secretary of state. For notices filed 
64.16 	electronically with the county recorders, the date and time of receipt of the notice and county 
64.17 	recorder's file number, and for notices filed electronically with the secretary of state, the 
64.18 	secretary of state's recording information, must be entered into the central database before 
64.19 	the close of the working day following the day of the original data entry by the commissioner.
64.20 	(e) The lien imposed on personal property, even though properly filed, is not enforceable 
64.21 	against a purchaser of tangible personal property purchased at retail or personal property 
64.22 	listed as exempt in sections 550.37, 550.38, and 550.39.
64.23 	(f) A notice of lien filed has priority over any security interest arising under chapter 336, 
64.24 	article 9, that is perfected prior in time to the lien imposed by this subdivision, but only if:
64.25 	(1) the perfected security interest secures property not in existence at the time the notice 
64.26 	of lien is filed; and
64.27 	(2) the property comes into existence after the 45th calendar day following the day the 
64.28 	notice of lien is filed, or after the secured party has actual notice or knowledge of the lien 
64.29 	filing, whichever is earlier.
64.30 	(g) The lien is enforceable from the time the lien arises and for ten years from the date 
64.31 	of filing the notice of lien. A notice of lien may be renewed before expiration for an additional 
64.32 	ten years.
65.1 	(h) The lien is enforceable by levy under subdivision 2 or by judgment lien foreclosure 
65.2 	under chapter 550.
65.3 	(i) The lien may be imposed upon property defined as homestead property in chapter 
65.4 	510 but may be enforced only upon the sale, transfer, or conveyance of the homestead 
65.5 	property.
65.6 	(j) The commissioner may sell and assign to a third party the commissioner's right of 
65.7 	redemption in specific real property for liens filed under this subdivision. The assignee is 
65.8 	limited to the same rights of redemption as the commissioner, except that in a bankruptcy 
65.9 	proceeding, the assignee does not obtain the commissioner's priority. Any proceeds from 
65.10 	the sale of the right of redemption are credited to the family and medical benefit insurance 
65.11 	account.
65.12 		Subd. 2.Levy. (a) If any amount due under this chapter, from an applicant or an employer, 
65.13 	is not paid when due, the amount may be collected by the commissioner by direct levy upon 
65.14 	all property and rights of property of the person liable for the amount due except property 
65.15 	exempt from execution under section 550.37. For the purposes of this section, "levy" includes 
65.16 	the power of distraint and seizure by any means.
65.17 	(b) In addition to a direct levy, the commissioner may issue a warrant to the sheriff of 
65.18 	any county who must proceed within 60 calendar days to levy upon the property or rights 
65.19 	to property of the delinquent person within the county, except property exempt under section 
65.20 	550.37. The sheriff must sell that property necessary to satisfy the total amount due, together 
65.21 	with the commissioner's and sheriff's costs. The sales are governed by the law applicable 
65.22 	to sales of like property on execution of a judgment.
65.23 	(c) Notice and demand for payment of the total amount due must be mailed to the 
65.24 	delinquent person at least ten calendar days before action being taken under paragraphs (a) 
65.25 	and (b).
65.26 	(d) If the commissioner has reason to believe that collection of the amount due is in 
65.27 	jeopardy, notice and demand for immediate payment may be made. If the total amount due 
65.28 	is not paid, the commissioner may proceed to collect by direct levy or issue a warrant without 
65.29 	regard to the ten calendar day period.
65.30 	(e) In executing the levy, the commissioner must have all of the powers provided in 
65.31 	chapter 550 or any other law that provides for execution against property in this state. The 
65.32 	sale of property levied upon and the time and manner of redemption is as provided in chapter 
65.33 	550. The seal of the court is not required. The levy may be made whether or not the 
65.34 	commissioner has commenced a legal action for collection.
66.1 	(f) Where any assessment has been made by the commissioner, the property seized for 
66.2 	collection of the total amount due must not be sold until any determination of liability has 
66.3 	become final. No sale may be made unless a portion of the amount due remains unpaid for 
66.4 	a period of more than 30 calendar days after the determination of liability becomes final. 
66.5 	Seized property may be sold at any time if:
66.6 	(1) the delinquent person consents in writing to the sale; or
66.7 	(2) the commissioner determines that the property is perishable or may become greatly 
66.8 	reduced in price or value by keeping, or that the property cannot be kept without great 
66.9 	expense.
66.10 	(g) Where a levy has been made to collect the amount due and the property seized is 
66.11 	properly included in a formal proceeding commenced under sections 524.3-401 to 524.3-505 
66.12 	and maintained under full supervision of the court, the property may not be sold until the 
66.13 	probate proceedings are completed or until the court orders.
66.14 	(h) The property seized must be returned if the owner:
66.15 	(1) gives a surety bond equal to the appraised value of the owner's interest in the property, 
66.16 	as determined by the commissioner; or
66.17 	(2) deposits with the commissioner security in a form and amount the commissioner 
66.18 	considers necessary to insure payment of the liability.
66.19 	(i) If a levy or sale would irreparably injure rights in property that the court determines 
66.20 	superior to rights of the state, the court may grant an injunction to prohibit the enforcement 
66.21 	of the levy or to prohibit the sale.
66.22 	(j) Any person who fails or refuses to surrender without reasonable cause any property 
66.23 	or rights to property subject to levy is personally liable in an amount equal to the value of 
66.24 	the property or rights not so surrendered, but not exceeding the amount due.
66.25 	(k) If the commissioner has seized the property of any individual, that individual may, 
66.26 	upon giving 48 hours notice to the commissioner and to the court, bring a claim for equitable 
66.27 	relief before the district court for the release of the property upon terms and conditions the 
66.28 	court considers equitable.
66.29 	(l) Any person in control or possession of property or rights to property upon which a 
66.30 	levy has been made who surrenders the property or rights to property, or who pays the 
66.31 	amount due is discharged from any obligation or liability to the person liable for the amount 
66.32 	due with respect to the property or rights to property.
67.1 	(m) The notice of any levy may be served personally or by mail.
67.2 	(n) The commissioner may release the levy upon all or part of the property or rights to 
67.3 	property levied upon if the commissioner determines that the release will facilitate the 
67.4 	collection of the liability, but the release does not prevent any subsequent levy. If the 
67.5 	commissioner determines that property has been wrongfully levied upon, the commissioner 
67.6 	must return:
67.7 	(1) the specific property levied upon, at any time; or
67.8 	(2) an amount of money equal to the amount of money levied upon, at any time before 
67.9 	the expiration of nine months from the date of levy.
67.10 	(o) Regardless of section 52.12, a levy upon a person's funds on deposit in a financial 
67.11 	institution located in this state, has priority over any unexercised right of setoff of the 
67.12 	financial institution to apply the levied funds toward the balance of an outstanding loan or 
67.13 	loans owed by the person to the financial institution. A claim by the financial institution 
67.14 	that it exercised its right to setoff before the levy must be substantiated by evidence of the 
67.15 	date of the setoff, and verified by an affidavit from a corporate officer of the financial 
67.16 	institution. For purposes of determining the priority of any levy under this subdivision, the 
67.17 	levy is treated as if it were an execution under chapter 550.
67.18 		Subd. 3.Right of setoff. (a) Upon certification by the commissioner to the commissioner 
67.19 	of management and budget, or to any state agency that disburses its own funds, that a person, 
67.20 	applicant, or employer has a liability under this chapter, and that the state has purchased 
67.21 	personal services, supplies, contract services, or property from that person, the commissioner 
67.22 	of management and budget or the state agency must set off and pay to the commissioner an 
67.23 	amount sufficient to satisfy the unpaid liability from funds appropriated for payment of the 
67.24 	obligation of the state otherwise due the person. No amount may be set off from any funds 
67.25 	exempt under section 550.37 or funds due an individual who receives assistance under 
67.26 	chapter 256.
67.27 	(b) All funds, whether general or dedicated, are subject to setoff.
67.28 	(c) Regardless of any law to the contrary, the commissioner has first priority to setoff 
67.29 	from any funds otherwise due from the department to a delinquent person.
67.30 		Subd. 4.Collection by civil action. (a) Any amount due under this chapter, from an 
67.31 	applicant or employer, may be collected by civil action in the name of the state of Minnesota. 
67.32 	Civil actions brought under this subdivision must be heard as provided under section 16D.14. 
67.33 	In any action, judgment must be entered in default for the relief demanded in the complaint 
68.1 	without proof, together with costs and disbursements, upon the filing of an affidavit of 
68.2 	default.
68.3 	(b) Any person that is not a resident of this state and any resident person removed from 
68.4 	this state, is considered to appoint the secretary of state as its agent for the acceptance of 
68.5 	process in any civil action. The commissioner must file process with the secretary of state, 
68.6 	together with a payment of a fee of $15 and that service is considered sufficient service and 
68.7 	has the same force and validity as if served personally within this state. Notice of the service 
68.8 	of process, together with a copy of the process, must be sent by certified mail to the person's 
68.9 	last known address. An affidavit of compliance with this subdivision, and a copy of the 
68.10 	notice of service must be appended to the original of the process and filed in the court.
68.11 	(c) No court filing fees, docketing fees, or release of judgment fees may be assessed 
68.12 	against the state for actions under this subdivision.
68.13 		Subd. 5.Injunction forbidden. No injunction or other legal action to prevent the 
68.14 	determination, assessment, or collection of any amounts due under this chapter, from an 
68.15 	applicant or employer, are allowed.

68.16 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
68.17 	2025.

68.18 	Sec. 35. [268B.24] CONCILIATION SERVICES.
68.19 	The Department of Labor and Industry may offer conciliation services to employers and 
68.20 	employees to resolve disputes concerning alleged violations of employment protections 
68.21 	identified in section 268B.09.

68.22 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
68.23 	2025.

68.24 	Sec. 36. [268B.25] ANNUAL REPORTS.
68.25 	(a) Beginning on or before July 1, 2026, the commissioner must annually report to the 
68.26 	Department of Management and Budget and the house of representatives and senate 
68.27 	committee chairs with jurisdiction over this chapter on program administrative expenditures 
68.28 	and revenue collection for the prior fiscal year, including but not limited to:
68.29 	(1) total revenue raised through premium collection;
68.30 	(2) the number of self-employed individuals or independent contractors electing coverage 
68.31 	under section 268B.11 and amount of associated revenue;
69.1 	(3) the number of covered business entities paying premiums under this chapter and 
69.2 	associated revenue;
69.3 	(4) administrative expenditures including transfers to other state agencies expended in 
69.4 	the administration of the chapter;
69.5 	(5) summary of contracted services expended in the administration of this chapter;
69.6 	(6) grant amounts and recipients under sections 268B.18 and 268B.29;
69.7 	(7) an accounting of required outreach expenditures;
69.8 	(8) summary of private plan approvals including the number of employers and employees 
69.9 	covered under private plans; and
69.10 	(9) adequacy and use of the private plan approval and oversight fee.
69.11 	(b) Beginning on or before July 1, 2026, the commissioner must annually publish a 
69.12 	publicly available report providing the following information for the previous fiscal year:
69.13 	(1) total eligible claims;
69.14 	(2) the number and percentage of claims attributable to each category of benefit;
69.15 	(3) claimant demographics by age, gender, average weekly wage, occupation, and the 
69.16 	type of leave taken;
69.17 	(4) the percentage of claims denied and the reasons therefor, including but not limited 
69.18 	to insufficient information and ineligibility and the reason therefor;
69.19 	(5) average weekly benefit amount paid for all claims and by category of benefit;
69.20 	(6) changes in the benefits paid compared to previous fiscal years;
69.21 	(7) processing times for initial claims processing, initial determinations, and final 
69.22 	decisions;
69.23 	(8) average duration for cases completed; and
69.24 	(9) the number of cases remaining open at the close of such year.

69.25 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
69.26 	2025.

69.27 	Sec. 37. [268B.26] NOTICE REQUIREMENTS.
69.28 	(a) Each employer must post in a conspicuous place on each of its premises a workplace 
69.29 	notice prepared by the commissioner providing notice of benefits available under this chapter. 
70.1 	The required workplace notice must be in English and each language other than English 
70.2 	which is the primary language of five or more employees or independent contractors of that 
70.3 	workplace, if such notice is available from the department.
70.4 	(b) Each employer must issue to each employee not more than 30 days from the beginning 
70.5 	date of the employee's employment, or 30 days before premium collection begins, whichever 
70.6 	is later, the following written information provided by the department in the primary language 
70.7 	of the employee:
70.8 	(1) an explanation of the availability of family and medical leave benefits provided under 
70.9 	this chapter, including rights to reinstatement and continuation of health insurance;
70.10 	(2) the amount of premium deductions made by the employer under this chapter;
70.11 	(3) the employer's premium amount and obligations under this chapter;
70.12 	(4) the name and mailing address of the employer;
70.13 	(5) the identification number assigned to the employer by the department;
70.14 	(6) instructions on how to file a claim for family and medical leave benefits;
70.15 	(7) the mailing address, e-mail address, and telephone number of the department; and
70.16 	(8) any other information required by the department.
70.17 	Delivery is made when an employee provides written acknowledgment of receipt of the 
70.18 	information, or signs a statement indicating the employee's refusal to sign such 
70.19 	acknowledgment.
70.20 	(c) Each employer shall provide to each independent contractor with whom it contracts, 
70.21 	at the time such contract is made or, for existing contracts, within 30 days of the effective 
70.22 	date of this section, the following written information provided by the department in the 
70.23 	self-employed individual's primary language:
70.24 	(1) the address and telephone number of the department;
70.25 	(2) an explanation of the availability of family and medical leave benefits provided under 
70.26 	this chapter for independent contractors; and
70.27 	(3) any other information required by the department.
70.28 	(d) An employer that fails to comply with this subdivision may be issued, for a first 
70.29 	violation, a civil penalty of $50 per employee and per independent contractor with whom 
70.30 	it has contracted, and for each subsequent violation, a civil penalty of $300 per employee 
71.1 	or self-employed individual with whom it has contracted. The employer shall have the 
71.2 	burden of demonstrating compliance with this section.
71.3 	(e) Employer notice to an employee under this section may be provided in paper or 
71.4 	electronic format. For notice provided in electronic format only, the employer must provide 
71.5 	employee access to an employer-owned computer during an employee's regular working 
71.6 	hours to review and print required notices.
71.7 	(f) The department shall prepare a uniform employee notice form for employers to use 
71.8 	that provides the notice information required under this section. The commissioner shall 
71.9 	prepare the uniform employee notice in the five most common languages spoken in 
71.10 	Minnesota. Upon the written request of an employer who is subject to this section, the 
71.11 	commissioner shall provide a copy of the uniform employee notice in any primary language 
71.12 	spoken by an employee in the employer's place of business. If the commissioner does not 
71.13 	provide the copy of the uniform employee notice in response to a request under this 
71.14 	paragraph, the employer who makes the request is not subject to a penalty for failing to 
71.15 	provide the required notice under this section for violations that arise after the date of the 
71.16 	request. The commissioner shall pay for any costs associated with preparing the uniform 
71.17 	employee notice form or providing additional copies under this paragraph.

71.18 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
71.19 	2025.

71.20 	Sec. 38. [268B.27] RELATIONSHIP TO OTHER LEAVE; CONSTRUCTION.
71.21 		Subdivision 1.Concurrent leave. An employer may require leave taken under this 
71.22 	chapter to run concurrently with leave taken for the same purpose under section 181.941 
71.23 	or the Family and Medical Leave Act, United States Code, title 29, sections 2601 to 2654, 
71.24 	as amended.
71.25 		Subd. 2.Construction. Nothing in this chapter shall be construed to:
71.26 	(1) allow an employer to compel an employee to exhaust accumulated sick, vacation, 
71.27 	or personal time before or while taking leave under this chapter;
71.28 	(2) prohibit an employer from providing additional benefits, including but not limited 
71.29 	to covering the portion of earnings not provided during periods of leave covered under this 
71.30 	chapter including through a supplemental benefit payment, as defined under section 268B.01, 
71.31 	subdivision 41;
71.32 	(3) limit the parties to a collective bargaining agreement from bargaining and agreeing 
71.33 	with respect to leave benefits and related procedures and employee protections that meet 
72.1 	or exceed, and do not otherwise conflict with, the minimum standards and requirements in 
72.2 	this chapter;
72.3 	(4) alter or amend the duty of parties to a collective bargaining agreement to meet and 
72.4 	negotiate or bargain collectively about the terms and conditions of employment, including 
72.5 	the amount or percentage of an employee charge back, pursuant to chapter 179A, and United 
72.6 	States Code, title 29, section 158(a)(5) and (b)(3). Nothing in this chapter requires parties 
72.7 	to a collective bargaining agreement to:
72.8 	(i) renegotiate an existing collective bargaining agreement;
72.9 	(ii) delay collective bargaining or negotiation about the amount or percentage of an 
72.10 	employee charge back until an existing collective bargaining agreement expires; or
72.11 	(iii) bargain collectively or negotiate for a new employee charge back provision each 
72.12 	time annual premium rates are changed under this chapter; or
72.13 	(5) applied so as to create any power or duty in conflict with federal law.

72.14 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
72.15 	2025.

72.16 	Sec. 39. [268B.28] SEVERABLE.
72.17 	If the United States Department of Labor or a court of competent jurisdiction determines 
72.18 	that any provision of the family and medical benefit insurance program under this chapter 
72.19 	is not in conformity with, or is inconsistent with, the requirements of federal law, the 
72.20 	provision has no force or effect. If only a portion of the provision, or the application to any 
72.21 	person or circumstances, is determined not in conformity, or determined inconsistent, the 
72.22 	remainder of the provision and the application of the provision to other persons or 
72.23 	circumstances are not affected.

72.24 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
72.25 	2025.

72.26 	Sec. 40. [268B.29] SMALL BUSINESS ASSISTANCE GRANTS.
72.27 	(a) Employers with 50 or fewer employees may apply to the department for grants under 
72.28 	this section.
72.29 	(b) The commissioner may approve a grant of up to $3,000 if the employer hires a 
72.30 	temporary worker to replace an employee on family or medical leave for a period of seven 
72.31 	days or more.
73.1 	(c) For an employee's family or medical leave, the commissioner may approve a grant 
73.2 	of up to $1,000 as reimbursement for significant additional wage-related costs due to the 
73.3 	employee's leave.
73.4 	(d) To be eligible for consideration for a grant under this section, the employer must 
73.5 	provide the department written documentation showing the temporary worker hired or 
73.6 	significant wage-related costs incurred are due to an employee's use of leave under this 
73.7 	chapter.
73.8 	(e) The grants under this section may be funded from the family and medical benefit 
73.9 	insurance account.
73.10 	(f) For the purposes of this section, the commissioner shall average the number of 
73.11 	employees reported by an employer over the last four completed calendar quarters to 
73.12 	determine the size of the employer.
73.13 	(g) An employer who has an approved private plan is not eligible to receive a grant under 
73.14 	this section.
73.15 	(h) The commissioner may award grants under this section only up to a maximum of 
73.16 	$5,000,000 per calendar year.

73.17 	EFFECTIVE DATE. Except as provided in section 41, this section is effective July 1, 
73.18 	2025.

73.19 	Sec. 41. APPLICATION.
 73.20 	Family and medical benefits under Minnesota Statutes, chapter 268B, may be applied 
73.21 	for and paid starting July 1, 2025.

73.22 	ARTICLE 2
73.23 	FAMILY AND MEDICAL LEAVE BENEFIT AS EARNINGS

73.24 	Section 1. Minnesota Statutes 2022, section 256J.561, is amended by adding a subdivision 
73.25 	to read:
73.26 		Subd. 4.Parents receiving family and medical leave benefits. A parent who meets 
73.27 	the criteria under subdivision 2 and who receives benefits under chapter 268B is not required 
73.28 	to participate in employment services.

74.1 	Sec. 2. Minnesota Statutes 2022, section 256J.95, subdivision 3, is amended to read:
74.2 		Subd. 3.Eligibility for diversionary work program. (a) Except for the categories of 
74.3 	family units listed in clauses (1) to (8) (9), all family units who apply for cash benefits and 
74.4 	who meet MFIP eligibility as required in sections 256J.11 to 256J.15 are eligible and must 
74.5 	participate in the diversionary work program. Family units or individuals that are not eligible 
74.6 	for the diversionary work program include:
74.7 	(1) child only cases;
74.8 	(2) single-parent family units that include a child under 12 months of age. A parent is 
74.9 	eligible for this exception once in a parent's lifetime;
74.10 	(3) family units with a minor parent without a high school diploma or its equivalent;
74.11 	(4) family units with an 18- or 19-year-old caregiver without a high school diploma or 
74.12 	its equivalent who chooses to have an employment plan with an education option;
74.13 	(5) family units with a caregiver who received DWP benefits within the 12 months prior 
74.14 	to the month the family applied for DWP, except as provided in paragraph (c);
74.15 	(6) family units with a caregiver who received MFIP within the 12 months prior to the 
74.16 	month the family applied for DWP;
74.17 	(7) family units with a caregiver who received 60 or more months of TANF assistance; 
74.18 	and
74.19 	(8) family units with a caregiver who is disqualified from the work participation cash 
74.20 	benefit program, DWP, or MFIP due to fraud.; and
74.21 	(9) single-parent family units where a parent is receiving family and medical leave 
74.22 	benefits under chapter 268B.
74.23 	(b) A two-parent family must participate in DWP unless both caregivers meet the criteria 
74.24 	for an exception under paragraph (a), clauses (1) through (5), or the family unit includes a 
74.25 	parent who meets the criteria in paragraph (a), clause (6), (7), or (8).
74.26 	(c) Once DWP eligibility is determined, the four months run consecutively. If a participant 
74.27 	leaves the program for any reason and reapplies during the four-month period, the county 
74.28 	must redetermine eligibility for DWP.

74.29 	Sec. 3. Minnesota Statutes 2022, section 256J.95, subdivision 11, is amended to read:
74.30 		Subd. 11.Universal participation required. (a) All DWP caregivers, except caregivers 
74.31 	who meet the criteria in paragraph (d), are required to participate in DWP employment 
75.1 	services. Except as specified in paragraphs (b) and (c), employment plans under DWP must, 
75.2 	at a minimum, meet the requirements in section 256J.55, subdivision 1.
75.3 	(b) A caregiver who is a member of a two-parent family that is required to participate 
75.4 	in DWP who would otherwise be ineligible for DWP under subdivision 3 may be allowed 
75.5 	to develop an employment plan under section 256J.521, subdivision 2, that may contain 
75.6 	alternate activities and reduced hours.
75.7 	(c) A participant who is a victim of family violence shall be allowed to develop an 
75.8 	employment plan under section 256J.521, subdivision 3. A claim of family violence must 
75.9 	be documented by the applicant or participant by providing a sworn statement which is 
75.10 	supported by collateral documentation in section 256J.545, paragraph (b).
75.11 	(d) One parent in a two-parent family unit that has a natural born child under 12 months 
75.12 	of age is not required to have an employment plan until the child reaches 12 months of age 
75.13 	unless the family unit has already used the exclusion under section 256J.561, subdivision 
75.14 	3, or the previously allowed child under age one exemption under section 256J.56, paragraph 
75.15 	(a), clause (5). if that parent:
75.16 	(1) receives family and medical leave benefits under chapter 268B; or
75.17 	(2) has a natural born child under 12 months of age until the child reaches 12 months 
75.18 	of age unless the family unit has already used the exclusion under section 256J.561, 
75.19 	subdivision 3, or the previously allowed child under age one exemption under section 
75.20 	256J.56, paragraph (a), clause (5).
75.21 	(e) The provision in paragraph (d) ends the first full month after the child reaches 12 
75.22 	months of age. This provision is allowable only once in a caregiver's lifetime. In a two-parent 
75.23 	household, only one parent shall be allowed to use this category.
75.24 	(f) The participant and job counselor must meet in the month after the month the child 
75.25 	reaches 12 months of age to revise the participant's employment plan. The employment plan 
75.26 	for a family unit that has a child under 12 months of age that has already used the exclusion 
75.27 	in section 256J.561 must be tailored to recognize the caregiving needs of the parent.

75.28 	Sec. 4. Minnesota Statutes 2022, section 256P.01, subdivision 3, is amended to read:
75.29 		Subd. 3.Earned income. "Earned income" means income earned through the receipt 
75.30 	of wages, salary, commissions, bonuses, tips, gratuities, profit from employment activities, 
75.31 	net profit from self-employment activities, payments made by an employer for regularly 
75.32 	accrued vacation or sick leave, severance pay based on accrued leave time, benefits paid 
75.33 	under chapter 268B, royalties, honoraria, or other profit from activity that results from the 
76.1 	client's work, effort, or labor for purposes other than student financial assistance, 
76.2 	rehabilitation programs, student training programs, or service programs such as AmeriCorps. 
76.3 	The income must be in return for, or as a result of, legal activity.

76.4 	Sec. 5. EFFECTIVE DATES.
 76.5 	Sections 1 to 4 are effective July 1, 2025.

76.6 	ARTICLE 3
76.7 	FAMILY AND MEDICAL LEAVE ACTUARIAL STUDY

76.8 	Section 1. ACTUARIAL STUDY REQUIREMENT.
 76.9 	(a) The commissioner of employment and economic development must contract with a 
76.10 	qualified independent actuarial consultant to conduct an actuarial study of the family and 
76.11 	medical leave premium rate, premium structure, weekly benefit formula, duration of benefit 
76.12 	weeks, fund reserve, and other components as necessary to determine the financial soundness 
76.13 	of the family and medical benefit insurance program created in this act. A qualified 
76.14 	independent actuarial consultant is one who is a Fellow of the Society of Actuaries, Member 
76.15 	of the American Academy of Actuaries (FSA MAAA), and who has experience directly 
76.16 	relevant to the analysis required under this paragraph. The commissioner must issue a request 
76.17 	for proposal to satisfy the requirements of this section no later than 30 days following 
76.18 	enactment.
76.19 	(b) A copy of the actuarial study must be provided to the majority and minority leaders 
76.20 	in the senate and house of representatives no later than October 31, 2023.

76.21 	ARTICLE 4
76.22 	APPROPRIATIONS

76.23	Section 1. APPROPRIATIONS.
 	
76.24 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
76.25 	and for the purposes specified in this article. The appropriations are from the family and 
76.26 	medical benefit insurance account under Minnesota Statutes, section 268B.02, subdivision 
76.27 	4, and are available for the fiscal years indicated for each purpose. The figures "2024" and 
76.28 	"2025" used in this article mean that the appropriations listed under them are available for 
76.29 	the fiscal year ending June 30, 2024, or June 30, 2025, respectively. "The first year" is fiscal 
76.30 	year 2024. "The second year" is fiscal year 2025. "The biennium" is fiscal years 2024 and 
76.31 	2025.

77.1				APPROPRIATIONS
	
77.2				Available for the Year
	
77.3				Ending June 30
	
77.4					2024
		2025

77.5
77.6	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT
 	$
	50,938,000
	$
	71,357,000
	
77.7 	This amount is for the purposes of Minnesota 
77.8 	Statutes, chapter 268B, including start-up and 
77.9 	information technology costs, administration, 
77.10 	and outreach.
77.11 	The base from the family and medical benefit 
77.12 	insurance account for fiscal year 2026 is 
77.13 	$76,088,000 and for fiscal year 2027 is 
77.14 	$73,641,000.

77.15
77.16	Sec. 3. DEPARTMENT OF LABOR AND 
INDUSTRY
 	$
	601,000
	$
	374,000
	
77.17 	This amount is for the purposes of Minnesota 
77.18 	Statutes, chapter 268B.
77.19 	The base from the family and medical benefit 
77.20 	insurance account for fiscal year 2026 and 
77.21 	beyond is $731,000.

77.22	Sec. 4. DEPARTMENT OF COMMERCE
 	$
	376,000
	$
	316,000
	
77.23 	This amount is for the purposes of Minnesota 
77.24 	Statutes, chapter 268B.
77.25 	The base from the family and medical benefit 
77.26 	insurance account for fiscal year 2026 and 
77.27 	beyond is $128,000.

77.28
77.29	Sec. 5. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	-0-
	$
	118,000
	
77.30 	This amount is for the purposes of Minnesota 
77.31 	Statutes, chapter 268B.
77.32 	The base from the family and medical benefit 
77.33 	insurance account for fiscal year 2026 and 
77.34 	beyond is $79,000.

78.1
78.2	Sec. 6. DEPARTMENT OF HUMAN 
SERVICES
 	$
	2,649,000
	$
	-0-
	
78.3 	This amount is for the purposes of Minnesota 
78.4 	Statutes, chapter 268B.
78.5 	The base from the family and medical benefit 
78.6 	insurance account for fiscal year 2026 and 
78.7 	beyond is $530,000.

78.8	Sec. 7. SECRETARY OF STATE
 	$
	384,000
	$
	4,000
	
78.9 	This amount is for the purposes of Minnesota 
78.10 	Statutes, chapter 268B.
78.11 	The base from the family and medical benefit 
78.12 	insurance account for fiscal year 2026 and 
78.13 	beyond is $77,000.

78.14 	Sec. 8. SUPREME COURT; APPROPRIATIONS.
 78.15 	$15,000 in fiscal year 2024 and $15,000 in fiscal year 2025 are appropriated from the 
78.16 	family and medical benefit insurance account to the supreme court for the purposes of 
78.17 	Minnesota Statutes, chapter 268B. This is a onetime appropriation.

78.18 	Sec. 9. LEGISLATURE; APPROPRIATION.
 78.19 	$18,000 in fiscal year 2024 is appropriated from the family and medical benefit insurance 
78.20 	account to the house of representatives for the purposes of Minnesota Statutes, chapter 
78.21 	268B. This is a onetime appropriation.

78.22 	Sec. 10. UNIVERSITY OF MINNESOTA; APPROPRIATION.
 78.23 	$1,372,000 in fiscal year 2025 is appropriated from the family and medical benefit 
78.24 	insurance account to the Board of Regents of the University of Minnesota for the purposes 
78.25 	of Minnesota Statutes, chapter 268B. This is a onetime appropriation.

78.26 	Sec. 11. TRANSFER.
 78.27 	The commissioner of management and budget shall transfer $668,321,000 in fiscal year 
78.28 	2024 from the general fund to the family and medical benefit insurance account for the 
78.29 	purposes of Minnesota Statutes, chapter 268B.

79.1 	Sec. 12. ENTERPRISE COSTS BASE ESTABLISHMENT.
 79.2 	A general fund base of $3,049,000 in fiscal year 2026 and $3,049,000 in fiscal year 2027 
79.3 	are established to fund enterprise requirements under Minnesota Statutes, chapter 268B, 
79.4 	employee notification, and the costs incurred by state agencies due to employer-paid 
79.5 	premiums established under Minnesota Statutes, chapter 268B. The commissioner of 
79.6 	management and budget shall allocate these amounts to agency base budgets based on the 
79.7 	expected costs incurred by those agencies.