HF 4496
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/18/2026 11:50 a.m.
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A bill for an act
relating to paid leave; exempting various employees from covered employment;
amending Minnesota Statutes 2024, section 268B.01, subdivisions 15, 17, by
adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter
356B.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 268B.01, subdivision 15, is amended to read:
Subd. 15.
Covered employment.
(a) "Covered employment" means performing services
of whatever nature, unlimited by the relationship of master and servant as known to the
common law, or any other legal relationship performed for wages or under any contract
calling for the performance of services, written or oral, express or implied.
(b) For the purposes of this chapter, covered employment means an employee's entire
employment during a calendar year if:
(1) 50 percent or more of the employment during the calendar year is performed in
Minnesota; or
(2) 50 percent or more of the employment during the calendar year is not performed in
Minnesota or any other single state within the United States, or United States territory or
foreign nation, but some of the employment is performed in Minnesota and the employee's
residence is in Minnesota during 50 percent or more of the calendar year.
(c) "Covered employment" does not include:
(1) a self-employed individual;
(2) an independent contractor; deleted text begin or
deleted text end
(3) employment by a seasonal employee, as defined in subdivision 35deleted text begin .deleted text end new text begin ;
new text end
new text begin
(4) employment by a substitute employee, as defined in subdivision 40a; or
new text end
new text begin
(5) employment by an individual covered in section 356B.015.
new text end
(d) Entities that are excluded under this section may opt in to coverage following a
procedure determined by the commissioner. In such cases, services provided by employees
are considered covered employment under subdivision 15.
(e) The commissioner may adopt rules in accordance with chapter 14 to:
(1) further define the application of this subdivision; and
(2) establish the criteria for covered employment for individuals that do not meet the
criteria in paragraphs (a) and (b), but that perform services as an employee to a Minnesota
employer.
new text begin
(f) Notwithstanding this subdivision, an employee covered under part-year employment
is only eligible to use accrued paid leave benefits during the time the employee is not actively
employed and working for a covered employer.
new text end
new text begin
(g) Notwithstanding this subdivision, an employee covered under section 268.085,
subdivision 7, is only eligible to use accrued paid leave benefits during the time the employee
is actively employed and working for a covered employer.
new text end
Sec. 2.
Minnesota Statutes 2024, section 268B.01, subdivision 17, is amended to read:
Subd. 17.
Employee.
(a) "Employee" means an individual who performs services of
whatever nature for an employer.
(b) Employee does not include deleted text begin employees of the United States of America, self-employed
individuals, or independent contractors.deleted text end new text begin :
new text end
new text begin
(1) an employee of the United States of America, a self-employed individual, or an
independent contractor;
new text end
deleted text begin (c) Employee does not includedeleted text end new text begin (2) anew text end seasonal deleted text begin employeesdeleted text end new text begin employee,new text end as defined in
subdivision 35deleted text begin .deleted text end new text begin ;
new text end
new text begin
(3) a substitute employee, as defined in subdivision 40a; and
new text end
new text begin
(4) an employee covered in section 356B.015.
new text end
Sec. 3.
Minnesota Statutes 2024, section 268B.01, is amended by adding a subdivision to
read:
new text begin Subd. 32a. new text end
new text begin Part-year employment. new text end
new text begin
"Part-year employment" means employment under
a fixed-term contract or agreement under which the employee's required service period is
less than 12 months in a calendar year and the employee's annual compensation is paid in
equal monthly installments over a 12-month period, regardless of the number of months or
days worked.
new text end
Sec. 4.
Minnesota Statutes 2024, section 268B.01, is amended by adding a subdivision to
read:
new text begin Subd. 40a. new text end
new text begin Substitute employee. new text end
new text begin
"Substitute employee" means a temporary employee
hired to replace a specific regular employee during a defined period of absence under this
chapter and who does not acquire permanent status by virtue of the temporary service.
new text end
Sec. 5.
new text begin
[356B.015] REEMPLOYMENT.
new text end
new text begin Subdivision 1. new text end
new text begin Return to employment. new text end
new text begin
A member of a retirement plan listed under
section 356B.01, paragraph (d), who has separated from service and is receiving an annuity
or has applied to receive an annuity may return to employment if doing so is for the purposes
of acting as a substitute employee under section 268B.01.
new text end
new text begin Subd. 2. new text end
new text begin Effect on annuity. new text end
new text begin
(a) Notwithstanding any other law to the contrary, a member's
return to employment under this section does not impact the member's continued receipt of
an annuity or commencement of annuity payments.
new text end
new text begin
(b) During the period of reemployment, the amount of the annuity must not increase or
decrease as a result of the reemployment.
new text end