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Capital IconMinnesota Legislature

HF 2

8th Engrossment - 93rd Legislature (2023 - 2024) Posted on 05/09/2023 03:07pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to employment; creating a family and medical benefit insurance program;
requiring leave from employment under certain circumstances; allowing substitution
of a private plan; prohibiting retaliation; classifying data; authorizing expedited
rulemaking; transferring money; appropriating money; amending Minnesota
Statutes 2022, sections 13.719, by adding a subdivision; 62A.01, subdivision 1;
177.27, subdivision 4; 181.032; 256B.0659, subdivision 18; 256B.85, subdivisions
13, 13a; 256J.561, by adding a subdivision; 256J.95, subdivisions 3, 11; 256P.01,
subdivision 3; 268.19, subdivision 1; proposing coding for new law as Minnesota
Statutes, chapter 268B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

FAMILY AND MEDICAL BENEFITS

Section 1.

Minnesota Statutes 2022, section 13.719, is amended by adding a subdivision
to read:


new text begin Subd. 7. new text end

new text begin Family and medical insurance data. new text end

new text begin (a) For the purposes of this subdivision,
the terms used have the meanings given them in section 268B.01.
new text end

new text begin (b) Data on applicants, family members, or employers under chapter 268B are private
or nonpublic data, provided that the department may share data collected from applicants
with employers or health care providers to the extent necessary to meet the requirements
of chapter 268B or other applicable law.
new text end

new text begin (c) The department and the Department of Labor and Industry may share data classified
under paragraph (b) to the extent necessary to meet the requirements of chapter 268B or
the Department of Labor and Industry's enforcement authority over chapter 268B, as provided
in section 177.27.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 2.

Minnesota Statutes 2022, section 62A.01, subdivision 1, is amended to read:


Subdivision 1.

Definition.

The term "policy of accident and sickness insurance" as used
herein includes any policy covering the kind of insurance described in section 60A.06,
subdivision 1
, clause (5)(a)new text begin , or the paid family and medical leave benefits as described in
section 268B.10
new text end .

Sec. 3.

Minnesota Statutes 2022, section 177.27, subdivision 4, is amended to read:


Subd. 4.

Compliance orders.

The commissioner may issue an order requiring an
employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032,
181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.172, paragraph (a) or (d), 181.275,
subdivision 2a
, 181.722, 181.79, deleted text begin anddeleted text end 181.939 to 181.943,new text begin 268B.09, subdivisions 1 to 6, and
268B.14, subdivision 3,
new text end or with any rule promulgated under section 177.28. The
commissioner shall issue an order requiring an employer to comply with sections 177.41
to 177.435 if the violation is repeated. For purposes of this subdivision only, a violation is
repeated if at any time during the two years that preceded the date of violation, the
commissioner issued an order to the employer for violation of sections 177.41 to 177.435
and the order is final or the commissioner and the employer have entered into a settlement
agreement that required the employer to pay back wages that were required by sections
177.41 to 177.435. The department shall serve the order upon the employer or the employer's
authorized representative in person or by certified mail at the employer's place of business.
An employer who wishes to contest the order must file written notice of objection to the
order with the commissioner within 15 calendar days after being served with the order. A
contested case proceeding must then be held in accordance with sections 14.57 to 14.69.
If, within 15 calendar days after being served with the order, the employer fails to file a
written notice of objection with the commissioner, the order becomes a final order of the
commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 4.

Minnesota Statutes 2022, section 181.032, is amended to read:


181.032 REQUIRED STATEMENT OF EARNINGS BY EMPLOYER; NOTICE
TO EMPLOYEE.

(a) At the end of each pay period, the employer shall provide each employee an earnings
statement, either in writing or by electronic means, covering that pay period. An employer
who chooses to provide an earnings statement by electronic means must provide employee
access to an employer-owned computer during an employee's regular working hours to
review and print earnings statementsnew text begin , and must make statements available for review or
printing for a period of three years
new text end .

(b) The earnings statement may be in any form determined by the employer but must
include:

(1) the name of the employee;

(2) the rate or rates of pay and basis thereof, including whether the employee is paid by
hour, shift, day, week, salary, piece, commission, or other method;

(3) allowances, if any, claimed pursuant to permitted meals and lodging;

(4) the total number of hours worked by the employee unless exempt from chapter 177;

(5) the total amount of gross pay earned by the employee during that period;

(6) a list of deductions made from the employee's pay;

new text begin (7) any amount deducted by the employer under section 268B.14, subdivision 3, and
the amount paid by the employer based on the employee's wages under section 268B.14,
subdivision 1;
new text end

deleted text begin (7)deleted text end new text begin (8)new text end the net amount of pay after all deductions are made;

deleted text begin (8)deleted text end new text begin (9)new text end the date on which the pay period ends;

deleted text begin (9)deleted text end new text begin (10)new text end the legal name of the employer and the operating name of the employer if
different from the legal name;

deleted text begin (10)deleted text end new text begin (11)new text end the physical address of the employer's main office or principal place of business,
and a mailing address if different; and

deleted text begin (11)deleted text end new text begin (12)new text end the telephone number of the employer.

(c) An employer must provide earnings statements to an employee in writing, rather
than by electronic means, if the employer has received at least 24 hours notice from an
employee that the employee would like to receive earnings statements in written form. Once
an employer has received notice from an employee that the employee would like to receive
earnings statements in written form, the employer must comply with that request on an
ongoing basis.

(d) At the start of employment, an employer shall provide each employee a written notice
containing the following information:

(1) the rate or rates of pay and basis thereof, including whether the employee is paid by
the hour, shift, day, week, salary, piece, commission, or other method, and the specific
application of any additional rates;

(2) allowances, if any, claimed pursuant to permitted meals and lodging;

(3) paid vacation, sick time, or other paid time-off accruals and terms of use;

(4) the employee's employment status and whether the employee is exempt from minimum
wage, overtime, and other provisions of chapter 177, and on what basis;

(5) a list of deductions that may be made from the employee's pay;

(6) the number of days in the pay period, the regularly scheduled pay day, and the pay
day on which the employee will receive the first payment of wages earned;

(7) the legal name of the employer and the operating name of the employer if different
from the legal name;

(8) the physical address of the employer's main office or principal place of business, and
a mailing address if different; and

(9) the telephone number of the employer.

(e) The employer must keep a copy of the notice under paragraph (d) signed by each
employee acknowledging receipt of the notice. The notice must be provided to each employee
in English. The English version of the notice must include text provided by the commissioner
that informs employees that they may request, by indicating on the form, the notice be
provided in a particular language. If requested, the employer shall provide the notice in the
language requested by the employee. The commissioner shall make available to employers
the text to be included in the English version of the notice required by this section and assist
employers with translation of the notice in the languages requested by their employees.

(f) An employer must provide the employee any written changes to the information
contained in the notice under paragraph (d) prior to the date the changes take effect.

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 5.

Minnesota Statutes 2022, section 256B.0659, subdivision 18, is amended to read:


Subd. 18.

Personal care assistance choice option; generally.

(a) The commissioner
may allow a recipient of personal care assistance services to use a fiscal intermediary to
assist the recipient in paying and accounting for medically necessary covered personal care
assistance services. Unless otherwise provided in this section, all other statutory and
regulatory provisions relating to personal care assistance services apply to a recipient using
the personal care assistance choice option.

(b) Personal care assistance choice is an option of the personal care assistance program
that allows the recipient who receives personal care assistance services to be responsible
for the hiring, training, scheduling, and firing of personal care assistants according to the
terms of the written agreement with the personal care assistance choice agency required
under subdivision 20, paragraph (a). This program offers greater control and choice for the
recipient in who provides the personal care assistance service and when the service is
scheduled. The recipient or the recipient's responsible party must choose a personal care
assistance choice provider agency as a fiscal intermediary. This personal care assistance
choice provider agency manages payroll, invoices the state, is responsible for all
payroll-related taxes and insurance, new text begin including premiums for family and medical benefit
insurance,
new text end and is responsible for providing the consumer training and support in managing
the recipient's personal care assistance services.

Sec. 6.

Minnesota Statutes 2022, section 256B.85, subdivision 13, is amended to read:


Subd. 13.

Budget model.

(a) Under the budget model participants exercise responsibility
and control over the services and supports described and budgeted within the CFSS service
delivery plan. Participants must use services specified in subdivision 13a provided by an
FMS provider. Under this model, participants may use their approved service budget
allocation to:

(1) directly employ support workers, and pay wages, federal and state payroll taxes, and
premiums for workers' compensation, liability, new text begin family and medical benefit insurance, new text end and
health insurance coverage; and

(2) obtain supports and goods as defined in subdivision 7.

(b) Participants who are unable to fulfill any of the functions listed in paragraph (a) may
authorize a legal representative or participant's representative to do so on their behalf.

(c) If two or more participants using the budget model live in the same household and
have the same support worker, the participants must use the same FMS provider.

(d) If the FMS provider advises that there is a joint employer in the budget model, all
participants associated with that joint employer must use the same FMS provider.

(e) The commissioner shall disenroll or exclude participants from the budget model and
transfer them to the agency-provider model under, but not limited to, the following
circumstances:

(1) when a participant has been restricted by the Minnesota restricted recipient program,
in which case the participant may be excluded for a specified time period under Minnesota
Rules, parts 9505.2160 to 9505.2245;

(2) when a participant exits the budget model during the participant's service plan year.
Upon transfer, the participant shall not access the budget model for the remainder of that
service plan year; or

(3) when the department determines that the participant or participant's representative
or legal representative is unable to fulfill the responsibilities under the budget model, as
specified in subdivision 14.

(f) A participant may appeal in writing to the department under section 256.045,
subdivision 3, to contest the department's decision under paragraph (e), clause (3), to disenroll
or exclude the participant from the budget model.

Sec. 7.

Minnesota Statutes 2022, section 256B.85, subdivision 13a, is amended to read:


Subd. 13a.

Financial management services.

(a) Services provided by an FMS provider
include but are not limited to: filing and payment of federal and state payroll taxes new text begin and
premiums
new text end on behalf of the participant; initiating and complying with background study
requirements under chapter 245C and maintaining documentation of background study
requests and results; billing for approved CFSS services with authorized funds; monitoring
expenditures; accounting for and disbursing CFSS funds; providing assistance in obtaining
and filing for liability, workers' compensation, new text begin family and medical benefit insurance, new text end and
unemployment coverage; and providing participant instruction and technical assistance to
the participant in fulfilling employer-related requirements in accordance with section 3504
of the Internal Revenue Code and related regulations and interpretations, including Code
of Federal Regulations, title 26, section 31.3504-1.

(b) Agency-provider services shall not be provided by the FMS provider.

(c) The FMS provider shall provide service functions as determined by the commissioner
for budget model participants that include but are not limited to:

(1) assistance with the development of the detailed budget for expenditures portion of
the CFSS service delivery plan as requested by the consultation services provider or
participant;

(2) data recording and reporting of participant spending;

(3) other duties established by the department, including with respect to providing
assistance to the participant, participant's representative, or legal representative in performing
employer responsibilities regarding support workers. The support worker shall not be
considered the employee of the FMS provider; and

(4) billing, payment, and accounting of approved expenditures for goods.

(d) The FMS provider shall obtain an assurance statement from the participant employer
agreeing to follow state and federal regulations and CFSS policies regarding employment
of support workers.

(e) The FMS provider shall:

(1) not limit or restrict the participant's choice of service or support providers or service
delivery models consistent with any applicable state and federal requirements;

(2) provide the participant, consultation services provider, and case manager or care
coordinator, if applicable, with a monthly written summary of the spending for services and
supports that were billed against the spending budget;

(3) be knowledgeable of state and federal employment regulations, including those under
the Fair Labor Standards Act of 1938, and comply with the requirements under new text begin chapter
268B and
new text end section 3504 of the Internal Revenue Code and related regulations and
interpretations, including Code of Federal Regulations, title 26, section 31.3504-1, regarding
agency employer tax liability for vendor fiscal/employer agent, and any requirements
necessary to process employer and employee deductions, provide appropriate and timely
submission of employer tax liabilities, and maintain documentation to support medical
assistance claims;

(4) have current and adequate liability insurance and bonding and sufficient cash flow
as determined by the commissioner and have on staff or under contract a certified public
accountant or an individual with a baccalaureate degree in accounting;

(5) assume fiscal accountability for state funds designated for the program and be held
liable for any overpayments or violations of applicable statutes or rules, including but not
limited to the Minnesota False Claims Act, chapter 15C;

(6) maintain documentation of receipts, invoices, and bills to track all services and
supports expenditures for any goods purchased and maintain time records of support workers.
The documentation and time records must be maintained for a minimum of five years from
the claim date and be available for audit or review upon request by the commissioner. Claims
submitted by the FMS provider to the commissioner for payment must correspond with
services, amounts, and time periods as authorized in the participant's service budget and
service plan and must contain specific identifying information as determined by the
commissioner; and

(7) provide written notice to the participant or the participant's representative at least 30
calendar days before a proposed service termination becomes effective.

(f) The commissioner shall:

(1) establish rates and payment methodology for the FMS provider;

(2) identify a process to ensure quality and performance standards for the FMS provider
and ensure statewide access to FMS providers; and

(3) establish a uniform protocol for delivering and administering CFSS services to be
used by eligible FMS providers.

Sec. 8.

Minnesota Statutes 2022, section 268.19, subdivision 1, is amended to read:


Subdivision 1.

Use of data.

(a) Except as provided by this section, data gathered from
any person under the administration of the Minnesota Unemployment Insurance Law are
private data on individuals or nonpublic data not on individuals as defined in section 13.02,
subdivisions 9 and 12, and may not be disclosed except according to a district court order
or section 13.05. A subpoena is not considered a district court order. These data may be
disseminated to and used by the following agencies without the consent of the subject of
the data:

(1) state and federal agencies specifically authorized access to the data by state or federal
law;

(2) any agency of any other state or any federal agency charged with the administration
of an unemployment insurance program;

(3) any agency responsible for the maintenance of a system of public employment offices
for the purpose of assisting individuals in obtaining employment;

(4) the public authority responsible for child support in Minnesota or any other state in
accordance with section 256.978;

(5) human rights agencies within Minnesota that have enforcement powers;

(6) the Department of Revenue to the extent necessary for its duties under Minnesota
laws;

(7) public and private agencies responsible for administering publicly financed assistance
programs for the purpose of monitoring the eligibility of the program's recipients;

(8) the Department of Labor and Industry and the Commerce Fraud Bureau in the
Department of Commerce for uses consistent with the administration of their duties under
Minnesota law;

(9) the Department of Human Services and the Office of Inspector General and its agents
within the Department of Human Services, including county fraud investigators, for
investigations related to recipient or provider fraud and employees of providers when the
provider is suspected of committing public assistance fraud;

(10) local and state welfare agencies for monitoring the eligibility of the data subject
for assistance programs, or for any employment or training program administered by those
agencies, whether alone, in combination with another welfare agency, or in conjunction
with the department or to monitor and evaluate the statewide Minnesota family investment
program and other cash assistance programs, the Supplemental Nutrition Assistance Program,
and the Supplemental Nutrition Assistance Program Employment and Training program by
providing data on recipients and former recipients of Supplemental Nutrition Assistance
Program (SNAP) benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child
care assistance under chapter 119B, or medical programs under chapter 256B or 256L or
formerly codified under chapter 256D;

(11) local and state welfare agencies for the purpose of identifying employment, wages,
and other information to assist in the collection of an overpayment debt in an assistance
program;

(12) local, state, and federal law enforcement agencies for the purpose of ascertaining
the last known address and employment location of an individual who is the subject of a
criminal investigation;

(13) the United States Immigration and Customs Enforcement has access to data on
specific individuals and specific employers provided the specific individual or specific
employer is the subject of an investigation by that agency;

(14) the Department of Health for the purposes of epidemiologic investigations;

(15) the Department of Corrections for the purposes of case planning and internal research
for preprobation, probation, and postprobation employment tracking of offenders sentenced
to probation and preconfinement and postconfinement employment tracking of committed
offenders;

(16) the state auditor to the extent necessary to conduct audits of job opportunity building
zones as required under section 469.3201; deleted text begin and
deleted text end

(17) the Office of Higher Education for purposes of supporting program improvement,
system evaluation, and research initiatives including the Statewide Longitudinal Education
Data Systemnew text begin ; and
new text end

new text begin (18) the Family and Medical Benefits Division of the Department of Employment and
Economic Development to be used as necessary to administer chapter 268B.
new text end .

(b) Data on individuals and employers that are collected, maintained, or used by the
department in an investigation under section 268.182 are confidential as to data on individuals
and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3
and 13, and must not be disclosed except under statute or district court order or to a party
named in a criminal proceeding, administrative or judicial, for preparation of a defense.

(c) Data gathered by the department in the administration of the Minnesota unemployment
insurance program must not be made the subject or the basis for any suit in any civil
proceedings, administrative or judicial, unless the action is initiated by the department.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 9.

new text begin [268B.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of this chapter, the terms defined in this section
have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Applicant. new text end

new text begin "Applicant" means an individual applying for leave with benefits
under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Applicant's average weekly wage. new text end

new text begin "Applicant's average weekly wage" means
an amount equal to the applicant's high quarter wage credits divided by 13.
new text end

new text begin Subd. 4. new text end

new text begin Base period. new text end

new text begin (a) "Base period," unless otherwise provided in this subdivision,
means the most recent four completed calendar quarters before the effective date of an
applicant's application for family or medical leave benefits if the application has an effective
date occurring after the month following the most recent completed calendar quarter. The
base period under this paragraph is as follows:
new text end

new text begin If the application for family or medical leave
benefits is effective on or between these
dates:
new text end
new text begin The base period is the prior:
new text end
new text begin February 1 to March 31
new text end
new text begin January 1 to December 31
new text end
new text begin May 1 to June 30
new text end
new text begin April 1 to March 31
new text end
new text begin August 1 to September 30
new text end
new text begin July 1 to June 30
new text end
new text begin November 1 to December 31
new text end
new text begin October 1 to September 30
new text end

new text begin (b) If an application for family or medical leave benefits has an effective date that is
during the month following the most recent completed calendar quarter, then the base period
is the first four of the most recent five completed calendar quarters before the effective date
of an applicant's application for family or medical leave benefits. The base period under
this paragraph is as follows:
new text end

new text begin If the application for family or medical leave
benefits is effective on or between these
dates:
new text end
new text begin The base period is the prior:
new text end
new text begin January 1 to January 31
new text end
new text begin October 1 to September 30
new text end
new text begin April 1 to April 30
new text end
new text begin January 1 to December 31
new text end
new text begin July 1 to July 31
new text end
new text begin April 1 to March 31
new text end
new text begin October 1 to October 31
new text end
new text begin July 1 to June 30
new text end

new text begin (c) Regardless of paragraph (a), a base period of the first four of the most recent five
completed calendar quarters must be used if the applicant would have more wage credits
under that base period than under a base period of the four most recent completed calendar
quarters.
new text end

new text begin (d) If the applicant has insufficient wage credits to establish a benefit account under a
base period of the four most recent completed calendar quarters, or a base period of the first
four of the most recent five completed calendar quarters, but during either base period the
applicant received workers' compensation for temporary disability under chapter 176 or a
similar federal law or similar law of another state, or if the applicant whose own serious
illness caused a loss of work for which the applicant received compensation for loss of
wages from some other source, the applicant may request a base period as follows:
new text end

new text begin (1) if an applicant was compensated for a loss of work of seven to 13 weeks during a
base period referred to in paragraph (a) or (b), then the base period is the first four of the
most recent six completed calendar quarters before the effective date of the application for
family or medical leave benefits;
new text end

new text begin (2) if an applicant was compensated for a loss of work of 14 to 26 weeks during a base
period referred to in paragraph (a) or (b), then the base period is the first four of the most
recent seven completed calendar quarters before the effective date of the application for
family or medical leave benefits;
new text end

new text begin (3) if an applicant was compensated for a loss of work of 27 to 39 weeks during a base
period referred to in paragraph (a) or (b), then the base period is the first four of the most
recent eight completed calendar quarters before the effective date of the application for
family or medical leave benefits; and
new text end

new text begin (4) if an applicant was compensated for a loss of work of 40 to 52 weeks during a base
period referred to in paragraph (a) or (b), then the base period is the first four of the most
recent nine completed calendar quarters before the effective date of the application for
family or medical leave benefits.
new text end

new text begin (e) For an applicant under a private plan as provided in section 268B.10, the base period
is those most recent four quarters in which wage credits were earned with the current
employer as provided by the current employer. If an employer does not have four quarters
of wage detail information, the employer must accept an employee's certification of wage
credits, based on the employee's records. If the employee does not provide certification of
additional wage credits, the employer may use a base period that consists of all available
quarters.
new text end

new text begin Subd. 5. new text end

new text begin Benefit. new text end

new text begin "Benefit" or "benefits" means monetary payments under this chapter
associated with qualifying bonding, family care, pregnancy, serious health condition,
qualifying exigency, or safety leave events, unless otherwise indicated by context.
new text end

new text begin Subd. 6. new text end

new text begin Benefit account. new text end

new text begin "Benefit account" means a benefit account established under
section 268B.04.
new text end

new text begin Subd. 7. new text end

new text begin Benefit year. new text end

new text begin (a) Except as provided in paragraph (b), "benefit year" means
the period of 52 calendar weeks beginning the date a benefit account under section 268B.04
is effective. For a benefit account established effective any January 1, April 1, July 1, or
October 1, the benefit year will be a period of 53 calendar weeks.
new text end

new text begin (b) For a private plan under section 268B.10, "benefit year" means:
new text end

new text begin (1) a calendar year;
new text end

new text begin (2) any fixed 12-month period, such as a fiscal year or a 12-month period measured
forward from an employee's first date of employment;
new text end

new text begin (3) a 12-month period measured forward from an employee's first day of leave taken;
or
new text end

new text begin (4) a rolling 12-month period measured backward from an employee's first day of leave
taken.
new text end

new text begin Employers are required to notify employees of their benefit year within 30 days of the
private plan approval and first day of employment.
new text end

new text begin Subd. 8. new text end

new text begin Bonding. new text end

new text begin "Bonding" means time spent by an applicant who is a biological,
adoptive, or foster parent with a biological, adopted, or foster child in conjunction with the
child's birth, adoption, or placement.
new text end

new text begin Subd. 9. new text end

new text begin Calendar day. new text end

new text begin "Calendar day" or "day" means a fixed 24-hour period
corresponding to a single calendar date.
new text end

new text begin Subd. 10. new text end

new text begin Calendar quarter. new text end

new text begin "Calendar quarter" means the period of three consecutive
calendar months ending on March 31, June 30, September 30, or December 31.
new text end

new text begin Subd. 11. new text end

new text begin Calendar week. new text end

new text begin "Calendar week" has the same meaning as "week" under
subdivision 46.
new text end

new text begin Subd. 12. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of employment
and economic development, unless otherwise indicated by context.
new text end

new text begin Subd. 13. new text end

new text begin Construction industry new text end

new text begin "Construction industry" means any construction,
reconstruction, building erection, alteration, remodel, repair, renovation, rehabilitation,
excavation, or demolition of any building, structure, facility utility, power plant, sewer,
dam, highway, road, street, airport, bridge, or other improvement.
new text end

new text begin Subd. 14. new text end

new text begin Covered active duty. new text end

new text begin "Covered active duty" has the meaning given in United
States Code, title 29, section 2611(14).
new text end

new text begin Subd. 15. new text end

new text begin Covered employment. new text end

new text begin (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.
new text end

new text begin (b) For the purposes of this chapter, covered employment means an employee's entire
employment during a calendar quarter if:
new text end

new text begin (1) 50 percent or more of the employment during the calendar quarter is performed in
Minnesota;
new text end

new text begin (2) 50 percent or more of the employment during the calendar quarter is not performed
in Minnesota or any other state, or Canada, 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 quarter; or
new text end

new text begin (3) 50 percent or more of the employment during the calendar quarter is not performed
in Minnesota or any other state, or Canada, but the place from where the employee's
employment is controlled and directed is based in Minnesota.
new text end

new text begin (c) "Covered employment" does not include:
new text end

new text begin (1) a self-employed individual; or
new text end

new text begin (2) an independent contractor.
new text end

new text begin Subd. 16. new text end

new text begin Department. new text end

new text begin "Department" means the Department of Employment and
Economic Development, unless otherwise indicated by context.
new text end

new text begin Subd. 17. new text end

new text begin Employee. new text end

new text begin (a) "Employee" means an individual who performs services of
whatever nature for an employer.
new text end

new text begin (b) Employee does not include employees of the United States of America, self-employed
individuals, or independent contractors.
new text end

new text begin Subd. 18. new text end

new text begin Employer. new text end

new text begin (a) "Employer" means:
new text end

new text begin (1) any person, type of organization, or entity, including any partnership, association,
trust, estate, joint stock company, insurance company, limited liability company, or
corporation, whether domestic or foreign, or the receiver, trustee in bankruptcy, trustee, or
the legal representative of a deceased person, having any individual in covered employment;
new text end

new text begin (2) the state, state agencies, Minnesota State Colleges and Universities, University of
Minnesota, and other statewide public systems; and
new text end

new text begin (3) any municipality or local government entity, including but not limited to a county,
city, town, school district, Metropolitan Council, Metropolitan Airports Commission, housing
and redevelopment authority, port authority, economic development authority, sports facilities
authority, joint powers board or organization created under section 471.59, destination
medical center corporation, municipal corporation, quasimunicipal corporation, or other
political subdivision. An employer also includes charter schools.
new text end

new text begin (b) Employer does not include:
new text end

new text begin (1) the United States of America; or
new text end

new text begin (2) a self-employed individual who has elected and been approved for coverage under
section 268B.11 with regard to the self-employed individual's own coverage and benefits.
new text end

new text begin Subd. 19. new text end

new text begin Estimated self-employment income. new text end

new text begin "Estimated self-employment income"
means a self-employed individual's average net earnings from self-employment in the two
most recent taxable years. For a self-employed individual who had net earnings from
self-employment in only one of the years, the individual's estimated self-employment income
equals the individual's net earnings from self-employment in the year in which the individual
had net earnings from self-employment.
new text end

new text begin Subd. 20. new text end

new text begin Family and medical benefit insurance account. new text end

new text begin "Family and medical benefit
insurance account" means the family and medical benefit insurance account in the special
revenue fund in the state treasury under section 268B.02.
new text end

new text begin Subd. 21. new text end

new text begin Family and medical benefit insurance enforcement account. new text end

new text begin "Family and
medical benefit insurance enforcement account" means the family and medical benefit
insurance enforcement account in the state treasury under section 268B.185.
new text end

new text begin Subd. 22. new text end

new text begin Family benefit program. new text end

new text begin "Family benefit program" means the program
administered under this chapter for the collection of premiums and payment of benefits
related to family care, bonding, safety leave, and leave related to a qualifying exigency.
new text end

new text begin Subd. 23. new text end

new text begin Family care. new text end

new text begin "Family care" means an applicant caring for a family member
with a serious health condition or caring for a family member who is a covered service
member.
new text end

new text begin Subd. 24. new text end

new text begin Family member. new text end

new text begin (a) "Family member" means, with respect to an applicant:
new text end

new text begin (1) a spouse or domestic partner;
new text end

new text begin (2) a child, including a biological, adopted, or foster child, a stepchild, or a child to
whom the applicant stands in loco parentis, is a legal guardian, or is a de facto parent;
new text end

new text begin (3) a parent or legal guardian of the applicant;
new text end

new text begin (4) a sibling;
new text end

new text begin (5) a grandchild;
new text end

new text begin (6) a grandparent or spouse's grandparent;
new text end

new text begin (7) a son-in-law or daughter-in-law; and
new text end

new text begin (8) an individual who has a relationship with the applicant that creates an expectation
and reliance that the applicant care for the individual, whether or not the applicant and the
individual reside together.
new text end

new text begin (b) For the purposes of this chapter, "grandchild" means a child of the applicant's child.
new text end

new text begin (c) For the purposes of this chapter, "grandparent" means a parent of the applicant's
parent.
new text end

new text begin (d) For the purposes of this chapter, "parent" means the biological, adoptive, de facto,
or foster parent, stepparent, or legal guardian of an applicant or the applicant's spouse, or
an individual who stood in loco parentis to an applicant when the applicant was a child.
new text end

new text begin Subd. 25. new text end

new text begin Health care provider. new text end

new text begin "Health care provider" means:
new text end

new text begin (1) an individual who is licensed, certified, or otherwise authorized under law to practice
in the individual's scope of practice as a physician, physician assistant, osteopath, surgeon,
podiatrist, advanced practice registered nurse, alcohol and drug counselor, as defined in
section 148F.01, subdivision 5, or mental health professional, as defined in section 245I.02,
subdivision 27; or
new text end

new text begin (2) any other individual determined by the commissioner by rule, in accordance with
the rulemaking procedures in the Administrative Procedure Act, to be capable of providing
health care services.
new text end

new text begin Subd. 26. new text end

new text begin High quarter. new text end

new text begin "High quarter" means the calendar quarter in an applicant's
base period with the highest amount of wage credits.
new text end

new text begin Subd. 27. new text end

new text begin Incapacity. new text end

new text begin "Incapacity" means inability to perform regular work, attend
school, or fully perform other regular daily activities due to a serious health condition,
treatment therefore, or recovery therefrom.
new text end

new text begin Subd. 28. new text end

new text begin Independent contractor. new text end

new text begin If there is an existing specific test or definition for
independent contractor in Minnesota statute or rule applicable to an occupation or sector
as of the date of enactment of this chapter, that test or definition shall apply to that occupation
or sector for purposes of this chapter. If there is not an existing test or definition as described,
the definition for independent contractor shall be as provided in Minnesota Rules, part
5200.0221.
new text end

new text begin Subd. 29. new text end

new text begin Inpatient care. new text end

new text begin "Inpatient care" means an overnight stay in a hospital, hospice,
or residential medical care facility, including any period of incapacity, or any subsequent
treatment in connection with such inpatient care.
new text end

new text begin Subd. 30. new text end

new text begin Maximum weekly benefit amount. new text end

new text begin "Maximum weekly benefit amount"
means the state's average weekly wage as calculated under section 268.035, subdivision 23.
new text end

new text begin Subd. 31. new text end

new text begin Medical benefit program. new text end

new text begin "Medical benefit program" means the program
administered under this chapter for the collection of premiums and payment of benefits
related to an applicant's serious health condition or pregnancy.
new text end

new text begin Subd. 32. new text end

new text begin Net earnings from self-employment. new text end

new text begin "Net earnings from self-employment"
has the meaning given in section 1402 of the Internal Revenue Code, as defined in section
290.01, subdivision 31.
new text end

new text begin Subd. 33. new text end

new text begin Pregnancy. new text end

new text begin "Pregnancy" includes prenatal care or incapacity due to pregnancy
or recovery from childbirth, stillbirth, miscarriage, or related health conditions.
new text end

new text begin Subd. 34. new text end

new text begin Qualifying exigency. new text end

new text begin (a) "Qualifying exigency" means a need arising out of
a military member's covered active duty service or notice of an impending call or order to
covered active duty in the United States armed forces, including providing for the care or
other needs of the family member's child or other dependent, making financial or legal
arrangements for the family member, attending counseling, attending military events or
ceremonies, spending time with the family member during a rest and recuperation leave or
following return from deployment, or making arrangements following the death of the
military member.
new text end

new text begin (b) For the purposes of this chapter, a "military member" means a current or former
member of the United States armed forces, including a member of the National Guard or
reserves, who, except for a deceased military member, is a resident of the state and is a
family member of the applicant taking leave related to the qualifying exigency.
new text end

new text begin Subd. 35. new text end

new text begin Safety leave. new text end

new text begin "Safety leave" means leave from work because of domestic
abuse, sexual assault, or stalking of the applicant or applicant's family member, provided
the leave is to:
new text end

new text begin (1) seek medical attention related to the physical or psychological injury or disability
caused by domestic abuse, sexual assault, or stalking;
new text end

new text begin (2) obtain services from a victim services organization;
new text end

new text begin (3) obtain psychological or other counseling;
new text end

new text begin (4) seek relocation due to the domestic abuse, sexual assault, or stalking; or
new text end

new text begin (5) seek legal advice or take legal action, including preparing for or participating in any
civil or criminal legal proceeding related to, or resulting from, the domestic abuse, sexual
assault, or stalking.
new text end

new text begin Subd. 36. new text end

new text begin Self-employed individual. new text end

new text begin "Self-employed individual" means a resident of
the state who, in one of the two taxable years preceding the current calendar year, derived
at least 5.3 percent of the state's average annual wage in net earnings from self-employment
from an entity other than an S corporation for the performance of services in this state.
new text end

new text begin Subd. 37. new text end

new text begin Self-employment premium base. new text end

new text begin "Self-employment premium base" means
the lesser of:
new text end

new text begin (1) a self-employed individual's estimated self-employment income for the calendar year
plus the individual's self-employment wages in the calendar year; or
new text end

new text begin (2) the maximum earnings subject to the FICA Old-Age, Survivors, and Disability
Insurance tax in the taxable year.
new text end

new text begin Subd. 38. new text end

new text begin Self-employment wages. new text end

new text begin "Self-employment wages" means the amount of
wages that a self-employed individual earned in the calendar year from an entity from which
the individual also received net earnings from self-employment.
new text end

new text begin Subd. 39. new text end

new text begin Serious health condition. new text end

new text begin (a) "Serious health condition" means a physical or
mental illness, injury, impairment, condition, or substance use disorder that involves:
new text end

new text begin (1) inpatient care in a hospital, hospice, or residential medical care facility, including
any period of incapacity; or
new text end

new text begin (2) continuing treatment or supervision by a health care provider which includes any
one or more of the following:
new text end

new text begin (i) a period of incapacity of more than three consecutive, full calendar days, and any
subsequent treatment or period of incapacity relating to the same condition, that also involves:
new text end

new text begin (A) treatment two or more times, within 30 days of the first day of incapacity, unless
extenuating circumstances beyond the applicant's control prevent a follow-up visit from
occurring as planned, by a health care provider or by a provider of health care services under
orders of, or on referral by, a health care provider; or
new text end

new text begin (B) treatment by a health care provider on at least one occasion that results in a regimen
of continuing treatment under the supervision of the health care provider;
new text end

new text begin (ii) a period of incapacity due to pregnancy;
new text end

new text begin (iii) a period of incapacity or treatment for a chronic health condition that:
new text end

new text begin (A) requires periodic visits, defined as at least twice a year, for treatment by a health
care provider or under orders of, or on referral by, a health care provider;
new text end

new text begin (B) continues over an extended period of time, including recurring episodes of a single
underlying condition; and
new text end

new text begin (C) may cause episodic rather than continuing periods of incapacity;
new text end

new text begin (iv) a period of incapacity which is permanent or long term due to a condition for which
treatment may not be effective. The applicant or family member must be under the continuing
supervision of, but need not be receiving active treatment by, a health care provider; or
new text end

new text begin (v) a period of absence to receive multiple treatments, including any period of recovery
from the treatments, by a health care provider or by a provider of health care services under
orders of, or on referral by, a health care provider, for:
new text end

new text begin (A) restorative surgery after an accident or other injury; or
new text end

new text begin (B) a condition that would likely result in a period of incapacity of more than three
consecutive, full calendar days in the absence of medical intervention or treatment.
new text end

new text begin (b) For the purposes of paragraph (a), clauses (1) and (2), treatment by a health care
provider means an in-person visit or telemedicine visit with a health care provider, or by a
provider of health care services under orders of, or on referral by, a health care provider.
new text end

new text begin (c) For the purposes of paragraph (a), treatment includes but is not limited to examinations
to determine if a serious health condition exists and evaluations of the condition.
new text end

new text begin (d) Absences attributable to incapacity under paragraph (a), clause (2), item (ii) or (iii),
qualify for leave under this chapter even if the applicant or the family member does not
receive treatment from a health care provider during the absence, and even if the absence
does not last more than three consecutive, full calendar days.
new text end

new text begin Subd. 40. new text end

new text begin State's average weekly wage. new text end

new text begin "State's average weekly wage" means the
weekly wage calculated under section 268.035, subdivision 23.
new text end

new text begin Subd. 41. new text end

new text begin Supplemental benefit payment. new text end

new text begin (a) "Supplemental benefit payment" means:
new text end

new text begin (1) a payment made by an employer to an employee as salary continuation or as paid
time off. Such a payment must be in addition to any family or medical leave benefits the
employee is receiving under this chapter; and
new text end

new text begin (2) a payment offered by an employer to an employee who is taking leave under this
chapter to supplement the family or medical leave benefits the employee is receiving.
new text end

new text begin (b) Employers may, but are not required to, designate certain benefits including but not
limited to salary continuation, vacation leave, sick leave, or other paid time off as a
supplemental benefit payment.
new text end

new text begin (c) Nothing in this chapter requires an employee to receive supplemental benefit
payments.
new text end

new text begin Subd. 42. new text end

new text begin Taxable year. new text end

new text begin "Taxable year" has the meaning given in section 290.01,
subdivision 9.
new text end

new text begin Subd. 43. new text end

new text begin Taxable wages. new text end

new text begin "Taxable wages" means those wages paid to an employee in
covered employment each calendar year up to an amount equal to the maximum wages
subject to premium in a calendar year, which is equal to the maximum earnings in that year
subject to the FICA Old-Age, Survivors, and Disability Insurance tax rounded to the nearest
$1,000.
new text end

new text begin Subd. 44. new text end

new text begin Typical workweek. new text end

new text begin "Typical workweek" means:
new text end

new text begin (1) for an hourly employee, the average number of hours worked per week by an
employee within the high quarter during the base year; or
new text end

new text begin (2) 40 hours for a salaried employee, regardless of the number of hours the salaried
employee typically works.
new text end

new text begin Subd. 45. new text end

new text begin Wage credits. new text end

new text begin "Wage credits" means the amount of wages paid within an
applicant's base period for covered employment, as defined in subdivision 13.
new text end

new text begin Subd. 46. new text end

new text begin Wage detail report. new text end

new text begin "Wage detail report" means the report on each employee
in covered employment required from an employer on a calendar quarter basis under section
268B.12.
new text end

new text begin Subd. 47. new text end

new text begin Wages. new text end

new text begin (a) "Wages" means all compensation for employment, including
commissions; bonuses, awards, and prizes; severance payments; standby pay; vacation and
holiday pay; back pay as of the date of payment; tips and gratuities paid to an employee by
a customer of an employer and accounted for by the employee to the employer; sickness
and accident disability payments, except as otherwise provided in this subdivision; and the
cash value of housing, utilities, meals, exchanges of services, and any other goods and
services provided to compensate an employee, except:
new text end

new text begin (1) the amount of any payment made to, or on behalf of, an employee under a plan
established by an employer that makes provision for employees generally or for a class or
classes of employees, including any amount paid by an employer for insurance or annuities,
or into a plan, to provide for a payment, on account of (i) retirement, (ii) medical and
hospitalization expenses in connection with sickness or accident disability, or (iii) death;
new text end

new text begin (2) the payment by an employer of the tax imposed upon an employee under United
States Code, title 26, section 3101 of the Federal Insurance Contribution Act, with respect
to compensation paid to an employee for domestic employment in a private household of
the employer or for agricultural employment;
new text end

new text begin (3) any payment made to, or on behalf of, an employee or beneficiary (i) from or to a
trust described in United States Code, title 26, section 401(a) of the federal Internal Revenue
Code, that is exempt from tax under section 501(a) at the time of the payment unless the
payment is made to an employee of the trust as compensation for services as an employee
and not as a beneficiary of the trust, or (ii) under or to an annuity plan that, at the time of
the payment, is a plan described in section 403(a);
new text end

new text begin (4) the value of any special discount or markdown allowed to an employee on goods
purchased from or services supplied by the employer where the purchases are optional and
do not constitute regular or systematic payment for services;
new text end

new text begin (5) customary and reasonable directors' fees paid to individuals who are not otherwise
employed by the corporation of which they are directors;
new text end

new text begin (6) the payment to employees for reimbursement of meal expenses when employees are
required to perform work after their regular hours;
new text end

new text begin (7) the payment into a trust or plan for purposes of providing legal or dental services if
provided for all employees generally or for a class or classes of employees;
new text end

new text begin (8) the value of parking facilities provided or paid for by an employer, in whole or in
part, if provided for all employees generally or for a class or classes of employees;
new text end

new text begin (9) royalties to an owner of a franchise, license, copyright, patent, oil, mineral, or other
right;
new text end

new text begin (10) advances or reimbursements for traveling or other ordinary and necessary expenses
incurred or reasonably expected to be incurred in the business of the employer. Traveling
and other reimbursed expenses must be identified either by making separate payments or
by specifically indicating the separate amounts where both wages and expense allowances
are combined in a single payment;
new text end

new text begin (11) residual payments to radio, television, and similar artists that accrue after the
production of television commercials, musical jingles, spot announcements, radio
transcriptions, film soundtracks, and similar activities;
new text end

new text begin (12) the income to a former employee resulting from the exercise of a nonqualified stock
option;
new text end

new text begin (13) supplemental unemployment benefit payments under a plan established by an
employer, if the payment is not wages under the Federal Unemployment Tax Act. The
payments are wages unless made solely for the supplementing of weekly state or federal
unemployment benefits. Supplemental unemployment benefit payments may not be assigned,
nor may any consideration be required from the applicant, other than a release of claims in
order to be excluded from wages;
new text end

new text begin (14) sickness or accident disability payments made by the employer after the expiration
of six calendar months following the last calendar month that the individual worked for the
employer;
new text end

new text begin (15) disability payments made under the provisions of any workers' compensation law;
new text end

new text begin (16) sickness or accident disability payments made by a third-party payer such as an
insurance company; or
new text end

new text begin (17) payments made into a trust fund, or for the purchase of insurance or an annuity, to
provide for sickness or accident disability payments to employees under a plan or system
established by the employer that provides for the employer's employees generally or for a
class or classes of employees.
new text end

new text begin (b) Nothing in this subdivision excludes from the term "wages" any payment made under
any type of salary reduction agreement, including payments made under a cash or deferred
arrangement and cafeteria plan, as defined in United States Code, title 26, sections 401(k)
and 125 of the federal Internal Revenue Code, to the extent that the employee has the option
to receive the payment in cash.
new text end

new text begin (c) Wages includes the total payment to the operator and supplier of a vehicle or other
equipment where the payment combines compensation for personal services as well as
compensation for the cost of operating and hiring the equipment in a single payment. This
paragraph does not apply if:
new text end

new text begin (1) there is a preexisting written agreement providing for allocation of specific amounts;
or
new text end

new text begin (2) at the time of each payment there is a written acknowledgment indicating the separate
allocated amounts.
new text end

new text begin (d) Wages includes payments made for services as a caretaker. Unless there is a contract
or other proof to the contrary, compensation is considered as being equally received by a
married couple where the employer makes payment to only one spouse, or by all tenants of
a household who perform services where two or more individuals share the same dwelling
and the employer makes payment to only one individual.
new text end

new text begin (e) Wages includes payments made for services by a migrant family. Where services
are performed by a married couple or a family and an employer makes payment to only one
individual, each worker is considered as having received an equal share of the compensation
unless there is a contract or other proof to the contrary.
new text end

new text begin (f) Wages includes advances or draws against future earnings, when paid, unless the
payments are designated as a loan or return of capital on the books and records of the
employer at the time of payment.
new text end

new text begin (g) Wages includes payments made by a subchapter "S" corporation, as organized under
the Internal Revenue Code, to or on behalf of officers and shareholders that are reasonable
compensation for services performed for the corporation.
new text end

new text begin For a subchapter "S" corporation, wages does not include:
new text end

new text begin (1) a loan for business purposes to an officer or shareholder evidenced by a promissory
note signed by an officer before the payment of the loan proceeds and recorded on the books
and records of the corporation as a loan to an officer or shareholder;
new text end

new text begin (2) a repayment of a loan or payment of interest on a loan made by an officer to the
corporation and recorded on the books and records of the corporation as a liability;
new text end

new text begin (3) a reimbursement of reasonable corporation expenses incurred by an officer and
documented by a written expense voucher and recorded on the books and records of the
corporation as corporate expenses; and
new text end

new text begin (4) a reasonable lease or rental payment to an officer who owns property that is leased
or rented to the corporation.
new text end

new text begin Subd. 48. new text end

new text begin Wages paid. new text end

new text begin (a) "Wages paid" means the amount of wages:
new text end

new text begin (1) that have been actually paid; or
new text end

new text begin (2) that have been credited to or set apart so that payment and disposition is under the
control of the employee.
new text end

new text begin (b) Wage payments delayed beyond the regularly scheduled pay date are wages paid on
the missed pay date. Back pay is wages paid on the date of actual payment. Any wages
earned but not paid with no scheduled date of payment are wages paid on the last day of
employment.
new text end

new text begin (c) Wages paid does not include wages earned but not paid except as provided for in
this subdivision.
new text end

new text begin Subd. 49. new text end

new text begin Week. new text end

new text begin "Week" means calendar week ending at midnight Saturday.
new text end

new text begin Subd. 50. new text end

new text begin Weekly benefit amount. new text end

new text begin "Weekly benefit amount" means the amount of
family and medical leave benefits computed under section 268B.04.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 10.

new text begin [268B.02] FAMILY AND MEDICAL BENEFIT INSURANCE PROGRAM
CREATION.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin A family and medical benefit insurance program is created to
be administered by the commissioner according to the terms of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Creation of division. new text end

new text begin A Family and Medical Benefit Insurance Division is
created within the department under the authority of the commissioner. The commissioner
shall appoint a director of the division. The division shall administer and operate the benefit
program under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Rulemaking. new text end

new text begin The commissioner shall adopt rules to implement the provisions
of this chapter. For the purposes of this chapter, the commissioner may use the expedited
rulemaking process under section 14.389.
new text end

new text begin Subd. 4. new text end

new text begin Account creation; appropriation. new text end

new text begin The family and medical benefit insurance
account is created in the special revenue fund in the state treasury. Money in this account
is appropriated to the commissioner to pay benefits under and to administer this chapter,
including outreach required under section 268B.18. Appropriations and transfers to the
account are credited to the account. Earnings, such as interest, dividends, and any other
earnings arising from assets of the account, are credited to the account. Money remaining
in the account at the end of a fiscal year are not canceled to the general fund but remain in
the account until expended.
new text end

new text begin Subd. 5. new text end

new text begin Information technology services and equipment. new text end

new text begin The department is exempt
from the provisions of section 16E.016 for the purposes of this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 11.

new text begin [268B.03] PAYMENT OF BENEFITS.
new text end

new text begin Subdivision 1. new text end

new text begin Requirements. new text end

new text begin The commissioner must pay benefits from the family
and medical benefit insurance account as provided under this chapter to an applicant who
has met each of the following requirements:
new text end

new text begin (1) the applicant has filed an application for benefits and established a benefit account
in accordance with section 268B.04;
new text end

new text begin (2) the applicant has met all of the ongoing eligibility requirements under section
268B.06;
new text end

new text begin (3) the applicant does not have an outstanding overpayment of family or medical leave
benefits, including any penalties or interest;
new text end

new text begin (4) the applicant has not been held ineligible for benefits under section 268.07, subdivision
2; and
new text end

new text begin (5) the applicant is not employed exclusively by a private plan employer and has wage
credits during the base year attributable to employers covered under the state family and
medical leave program.
new text end

new text begin Subd. 2. new text end

new text begin Benefits paid from state funds. new text end

new text begin Benefits are paid from state funds and are not
considered paid from any special insurance plan, nor as paid by an employer. An application
for family or medical leave benefits is not considered a claim against an employer but is
considered a request for benefits from the family and medical benefit insurance account.
The commissioner has the responsibility for the proper payment of benefits regardless of
the level of interest or participation by an applicant or an employer in any determination or
appeal. An applicant's entitlement to benefits must be determined based upon that information
available without regard to a burden of proof. Any agreement between an applicant and an
employer is not binding on the commissioner in determining an applicant's entitlement.
There is no presumption of entitlement or nonentitlement to benefits.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 12.

new text begin [268B.04] BENEFIT ACCOUNT; BENEFITS.
new text end

new text begin Subdivision 1. new text end

new text begin Application for benefits; determination of benefit account. new text end

new text begin (a) An
application for benefits may be filed up to 60 days before leave taken under section 268B.085
in person, by mail, or by electronic transmission as the commissioner may require. The
applicant must include certification supporting a request for leave under this chapter. The
applicant must meet eligibility requirements and must provide all requested information in
the manner required. If the applicant fails to provide all requested information, the
communication is not an application for family and medical leave benefits.
new text end

new text begin (b) The commissioner must examine each application for benefits to determine the base
period and the benefit year, and based upon all the covered employment in the base period
the commissioner must determine the weekly benefit amount available, if any, and the
maximum amount of benefits available, if any. The determination, which is a document
separate and distinct from a document titled a determination of eligibility or determination
of ineligibility, must be titled determination of benefit account. A determination of benefit
account must be sent to the applicant and all base period employers, by mail or electronic
transmission.
new text end

new text begin (c) If a base period employer did not provide wage detail information for the applicant
as required under section 268B.12, the commissioner may accept an applicant certification
of wage credits, based upon the applicant's records, and issue a determination of benefit
account.
new text end

new text begin (d) The commissioner may, at any time within 24 months from the establishment of a
benefit account, reconsider any determination of benefit account and make an amended
determination if the commissioner finds that the wage credits listed in the determination
were incorrect for any reason. An amended determination of benefit account must be
promptly sent to the applicant and all base period employers, by mail or electronic
transmission. This paragraph does not apply to documents titled determinations of eligibility
or determinations of ineligibility issued.
new text end

new text begin (e) If an amended determination of benefit account reduces the weekly benefit amount
or maximum amount of benefits available, any benefits that have been paid greater than the
applicant was entitled is an overpayment of benefits. A determination or amended
determination issued under this section that results in an overpayment of benefits must set
out the amount of the overpayment and the requirement that the overpaid benefits must be
repaid according to section 268B.185.
new text end

new text begin Subd. 2. new text end

new text begin Benefit account requirements. new text end

new text begin To establish a benefit account, an applicant
must have wage credits of at least 5.3 percent of the state's average annual wage rounded
down to the next lower $100.
new text end

new text begin Subd. 3. new text end

new text begin Weekly benefit amount; maximum amount of benefits available; prorated
amount.
new text end

new text begin (a) Subject to the maximum weekly benefit amount, an applicant's weekly benefit
is calculated by adding the amounts obtained by applying the following percentage to an
applicant's average typical workweek and weekly wage during the high quarter of the base
period:
new text end

new text begin (1) 90 percent of wages that do not exceed 50 percent of the state's average weekly wage;
plus
new text end

new text begin (2) 66 percent of wages that exceed 50 percent of the state's average weekly wage but
not 100 percent; plus
new text end

new text begin (3) 55 percent of wages that exceed 100 percent of the state's average weekly wage.
new text end

new text begin (b) The state's average weekly wage is the average wage as calculated under section
268.035, subdivision 23, at the time a benefit amount is first determined.
new text end

new text begin (c) The maximum weekly benefit amount is the state's average weekly wage as calculated
under section 268.035, subdivision 23.
new text end

new text begin (d) The state's maximum weekly benefit amount, computed in accordance with section
268.035, subdivision 23, applies to a benefit account established effective on or after the
last Sunday in October. Once established, an applicant's weekly benefit amount is not
affected by the last Sunday in October change in the state's maximum weekly benefit amount.
new text end

new text begin (e) For an employee receiving family or medical leave, a weekly benefit amount is
prorated when:
new text end

new text begin (1) the employee works hours for wages; or
new text end

new text begin (2) the employee uses paid sick leave, paid vacation leave, or other paid time off that is
not considered a supplemental benefit payment as defined in section 268B.01, subdivision
41.
new text end

new text begin Subd. 4. new text end

new text begin Timing of payment. new text end

new text begin Except as otherwise provided for in this chapter, benefits
must be paid weekly.
new text end

new text begin Subd. 5. new text end

new text begin Maximum length of benefits. new text end

new text begin (a) Except as provided in paragraph (b), in a
single benefit year, an applicant may receive benefits under this chapter as follows:
new text end

new text begin (1) for an applicant's serious health condition or pregnancy, up to 12 weeks of benefits;
or
new text end

new text begin (2) for bonding, safety leave, family care, or leave related to a qualifying exigency, up
to 12 weeks of benefits; and
new text end

new text begin (3) if an applicant is eligible for benefits under clauses (1) and (2) in the same benefit
year, up to an additional six weeks of benefits; provided that, the maximum length of benefits
an applicant may receive in a single benefit year under this chapter shall not exceed 18
weeks total, unless paragraph (b) applies.
new text end

new text begin (b) In addition to the benefits received under paragraph (a), an applicant may receive
up to an additional six weeks of benefits for leave related to pregnancy recovery or
complications; provided that, the maximum length of benefits an applicant may receive in
a single benefit year under this chapter shall not exceed 24 weeks total.
new text end

new text begin Subd. 6. new text end

new text begin Minimum period for which benefits payable. new text end

new text begin Except for a claim for benefits
for bonding leave, any claim for benefits must be based on a single qualifying event of at
least seven calendar days. Benefits may be paid for a minimum duration of eight consecutive
hours in a week. If an applicant on leave claims eight hours at any point during a week, the
minimum duration is satisfied.
new text end

new text begin Subd. 7. new text end

new text begin Right of appeal. new text end

new text begin (a) A determination or amended determination of benefit
account is final unless an appeal is filed by the applicant within 60 calendar days after the
sending of the determination or amended determination.
new text end

new text begin (b) Any applicant may appeal from a determination or amended determination of benefit
account on the issue of whether services performed constitute employment, whether the
employment is covered employment, and whether money paid constitutes wages.
new text end

new text begin Subd. 8. new text end

new text begin Limitations on applications and benefit accounts. new text end

new text begin (a) An application for
family or medical leave benefits is effective the Sunday of the calendar week that the
application was filed. An application for benefits may be backdated one calendar week
before the Sunday of the week the application was actually filed if the applicant requests
the backdating within seven calendar days of the date the application is filed. An application
may be backdated only if the applicant was eligible for the benefit during the period of the
backdating. If an individual attempted to file an application for benefits, but was prevented
from filing an application by the department, the application is effective the Sunday of the
calendar week the individual first attempted to file an application.
new text end

new text begin (b) A benefit account established under subdivision 2 is effective the date the application
for benefits was effective.
new text end

new text begin (c) A benefit account, once established, may later be withdrawn if:
new text end

new text begin (1) the applicant has not been paid any benefits on that benefit account; and
new text end

new text begin (2) a new application for benefits is filed and a new benefit account is established at the
time of the withdrawal.
new text end

new text begin (d) A benefit account may be withdrawn after the expiration of the benefit year if the
applicant was not paid any benefits on the benefit account that is being withdrawn.
new text end

new text begin (e) A determination or amended determination of eligibility or ineligibility issued under
section 268B.07 that was sent before the withdrawal of the benefit account, remains in effect
and is not voided by the withdrawal of the benefit account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 13.

new text begin [268B.05] NOTIFICATION OF CHANGED CIRCUMSTANCES.
new text end

new text begin An applicant shall promptly notify the department of changes that may affect eligibility
under section 268B.06.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 14.

new text begin [268B.06] ELIGIBILITY REQUIREMENTS; PAYMENTS THAT AFFECT
BENEFITS.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility conditions. new text end

new text begin (a) An applicant may be eligible to receive family
or medical leave benefits for any week if:
new text end

new text begin (1) the week for which benefits are requested is in the applicant's benefit year;
new text end

new text begin (2) the applicant was unable to perform regular work due to a serious health condition,
a qualifying exigency, safety leave, family care, bonding, pregnancy, or recovery from
pregnancy for the period required under subdivision 2. For bonding leave, eligibility ends
12 months after birth or placement;
new text end

new text begin (3) the applicant has sufficient wage credits from an employer or employers as defined
in section 268B.01, subdivision 41, to establish a benefit account under section 268B.04;
and
new text end

new text begin (4) an applicant requesting benefits under this chapter must fulfill certification
requirements under subdivision 3.
new text end

new text begin (b) A self-employed individual or independent contractor who has elected and been
approved for coverage under section 268B.11 need not fulfill the requirement of paragraph
(a), clause (3) or (4).
new text end

new text begin Subd. 2. new text end

new text begin Seven-day qualifying event. new text end

new text begin (a) The period for which an applicant is seeking
benefits must be or have been based on a single event of at least seven calendar days' duration
related to pregnancy, recovery from pregnancy, family care, a qualifying exigency, safety
leave, or the applicant's serious health condition. The days must be consecutive, unless the
leave is intermittent.
new text end

new text begin (b) Benefits related to bonding need not meet the seven-day qualifying event requirement.
new text end

new text begin (c) The commissioner shall use the rulemaking authority under section 268B.02,
subdivision 3, to adopt rules regarding what serious health conditions and other events are
prospectively presumed to constitute seven-day qualifying events under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Certification. new text end

new text begin (a) Certification for an applicant taking leave related to the
applicant's serious health condition shall be sufficient if the certification states the date on
which the serious health condition began, the probable duration of the condition, and the
appropriate medical facts within the knowledge of the health care provider as required by
the commissioner.
new text end

new text begin (b) Certification for an applicant taking leave to care for a family member with a serious
health condition shall be sufficient if the certification states the date on which the serious
health condition commenced, the probable duration of the condition, the appropriate medical
facts within the knowledge of the health care provider as required by the commissioner, a
statement that the family member requires care, and an estimate of the amount of time that
the family member will require care.
new text end

new text begin (c) Certification for an applicant taking leave related to pregnancy shall be sufficient if
the certification states the applicant is experiencing a pregnancy and recovery period based
on appropriate medical facts within the knowledge of the health care provider.
new text end

new text begin (d) Certification for an applicant taking bonding leave because of the birth of the
applicant's child shall be sufficient if the certification includes either the child's birth
certificate or a document issued by the health care provider of the child or the health care
provider of the person who gave birth, stating the child's birth date or estimated due date.
new text end

new text begin (e) Certification for an applicant taking bonding leave because of the placement of a
child with the applicant for adoption or foster care shall be sufficient if the applicant provides
a document issued by the health care provider of the child, an adoption or foster care agency
involved in the placement, or by other individuals as determined by the commissioner that
confirms the placement and the date of placement. To the extent that the status of an applicant
as an adoptive or foster parent changes while an application for benefits is pending, or while
the covered individual is receiving benefits, the applicant must notify the department of
such change in status in writing.
new text end

new text begin (f) Certification for an applicant taking leave because of a qualifying exigency shall be
sufficient if the certification includes:
new text end

new text begin (1) a copy of the family member's active-duty orders;
new text end

new text begin (2) other documentation issued by the United States armed forces; or
new text end

new text begin (3) other documentation permitted by the commissioner.
new text end

new text begin (g) Certification for an applicant taking safety leave is sufficient if the certification
includes a court record or documentation signed by a volunteer or employee of a victim's
services organization, an attorney, a police officer, or an antiviolence counselor. The
commissioner must not require disclosure of details relating to an applicant's or applicant's
family member's domestic abuse, sexual assault, or stalking.
new text end

new text begin (h) Certifications under paragraphs (a) to (e) must be reviewed and signed by a health
care provider with knowledge of the qualifying event associated with the leave.
new text end

new text begin (i) For a leave taken on an intermittent or reduced-schedule basis, based on a serious
health condition of an applicant or applicant's family member, the certification under this
subdivision must include an explanation of how such leave would be medically beneficial
to the individual with the serious health condition.
new text end

new text begin Subd. 4. new text end

new text begin Not eligible. new text end

new text begin An applicant is ineligible for family or medical leave benefits for
any portion of a typical workweek:
new text end

new text begin (1) that occurs before the effective date of a benefit account;
new text end

new text begin (2) that the applicant fails or refuses to provide information on an issue of ineligibility
required under section 268B.07, subdivision 2; or
new text end

new text begin (3) for which the applicant worked for pay from the employer from whom the applicant
is taking leave under this chapter.
new text end

new text begin Subd. 5. new text end

new text begin Vacation, sick leave, paid time off, and disability insurance payments. new text end

new text begin (a)
An employee may use vacation pay, sick pay, paid time off pay, or disability insurance
payments, in lieu of family or medical leave program benefits under this chapter, provided
the employee is concurrently eligible. Subject to the limitations of section 268B.09,
subdivision 1, an employee is entitled to the employment protections under section 268B.09
for those workdays during which this option is exercised. This subdivision applies to private
plans under section 268B.10.
new text end

new text begin (b) An employer may offer a supplemental benefit payment, as defined in section
268B.01, subdivision 41, to an employee on family or medical leave in addition to any paid
family or medical leave benefits the employee is receiving. The choice to receive a
supplemental benefit payment lies with the employee. Nothing in this section shall be
construed as requiring an employee to receive, or an employer to provide, a supplemental
benefit payment.
new text end

new text begin Subd. 6. new text end

new text begin Workers' compensation offset. new text end

new text begin (a) An applicant is not eligible to receive
benefits for any portion of a week in which the applicant is receiving or has received
compensation for loss of wages equal to or in excess of the applicant's weekly family or
medical leave benefit amount under:
new text end

new text begin (1) the workers' compensation law of this state; or
new text end

new text begin (2) the workers' compensation law of any other state or similar federal law.
new text end

new text begin (b) This subdivision does not apply to an applicant who has a claim pending for loss of
wages under paragraph (a). If the applicant later receives compensation as a result of the
pending claim, the applicant is subject to paragraph (a) and the family or medical leave
benefits paid are overpaid benefits under section 268B.185.
new text end

new text begin (c) If the amount of compensation described under paragraph (a) for any week is less
than the applicant's weekly family or medical leave benefit amount, benefits requested for
that week are reduced by the amount of that compensation payment.
new text end

new text begin Subd. 7. new text end

new text begin Separation, severance, or bonus payments. new text end

new text begin (a) An applicant is not eligible
to receive benefits for any week the applicant is receiving, has received, or will receive
separation pay, severance pay, bonus pay, or any other payments paid by an employer
because of, upon, or after separation from employment. This subdivision applies if the
payment is:
new text end

new text begin (1) considered wages under section 268B.01, subdivision 43; or
new text end

new text begin (2) subject to the Federal Insurance Contributions Act (FICA) tax imposed to fund Social
Security and Medicare.
new text end

new text begin (b) Payments under this subdivision are applied to the period immediately following the
later of the date of separation from employment or the date the applicant first becomes
aware that the employer will be making a payment. The date the payment is actually made
or received, or that an applicant must agree to a release of claims, does not affect the
application of this paragraph.
new text end

new text begin (c) This subdivision does not apply to vacation pay, sick pay, personal time off pay, or
supplemental benefit payment under subdivision 4.
new text end

new text begin (d) This subdivision applies to all the weeks of payment.
new text end

new text begin (e) Under this subdivision, if the payment with respect to a week is equal to or more
than the applicant's weekly benefit amount, the applicant is ineligible for benefits for that
week. If the payment with respect to a week is less than the applicant's weekly benefit
amount, benefits are reduced by the amount of the payment.
new text end

new text begin Subd. 8. new text end

new text begin Social Security disability benefits. new text end

new text begin (a) An applicant who is receiving, has
received, or has filed for primary Social Security disability benefits for any week is ineligible
for benefits for that week, unless:
new text end

new text begin (1) the Social Security Administration approved the collecting of primary Social Security
disability benefits each month the applicant was employed during the base period; or
new text end

new text begin (2) the applicant provides a statement from an appropriate health care professional who
is aware of the applicant's Social Security disability claim and the basis for that claim,
certifying that the applicant is able to perform the essential functions of their employment
with or without a reasonable accommodation.
new text end

new text begin (b) If an applicant meets the requirements of paragraph (a), clause (1) or (2), there is no
deduction from the applicant's weekly benefit amount for any Social Security disability
benefits.
new text end

new text begin (c) Information from the Social Security Administration is conclusive, absent specific
evidence showing that the information was erroneous.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 15.

new text begin [268B.07] DETERMINATION ON ISSUES OF ELIGIBILITY.
new text end

new text begin Subdivision 1. new text end

new text begin Employer notification. new text end

new text begin (a) Upon a determination that an applicant is
entitled to benefits, the commissioner must promptly send a notification to each current
employer of the applicant, if any, in accordance with paragraph (b).
new text end

new text begin (b) The notification under paragraph (a) must include, at a minimum:
new text end

new text begin (1) the name of the applicant;
new text end

new text begin (2) that the applicant has applied for and received benefits;
new text end

new text begin (3) the week the benefits commence;
new text end

new text begin (4) the weekly benefit amount payable; and
new text end

new text begin (5) the maximum duration of benefits.
new text end

new text begin Subd. 2. new text end

new text begin Determination. new text end

new text begin (a) The commissioner must determine any issue of ineligibility
raised by information required from an applicant and send to the applicant and any current
base period employer, by mail or electronic transmission, a document titled a determination
of eligibility or a determination of ineligibility, as is appropriate, within two weeks, unless
the application is incomplete due to outstanding requests for information including clerical
or other errors. Nothing prohibits the commissioner from requesting additional information
or the applicant from supplementing their initial application before a determination of
eligibility. The commissioner may extend the deadline for a determination under this
subdivision due to extenuating circumstances.
new text end

new text begin (b) If an applicant obtained benefits through misrepresentation, the department is
authorized to issue a determination of ineligibility within 12 months of the establishment
of the benefit account.
new text end

new text begin (c) If the department has filed an intervention in a worker's compensation matter under
section 176.361, the department is authorized to issue a determination of ineligibility within
48 months of the establishment of the benefit account.
new text end

new text begin (d) A determination of eligibility or determination of ineligibility is final unless an appeal
is filed by the applicant within 60 calendar days after sending. The determination must
contain a prominent statement indicating the consequences of not appealing. Proceedings
on the appeal are conducted in accordance with section 268B.08.
new text end

new text begin (e) An issue of ineligibility required to be determined under this section includes any
question regarding the denial or allowing of benefits under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Amended determination. new text end

new text begin Unless an appeal has been filed, the commissioner,
on the commissioner's own motion, may reconsider a determination of eligibility or
determination of ineligibility that has not become final and issue an amended determination.
Any amended determination must be sent to the applicant and any employer in the current
base period by mail or electronic transmission. Any amended determination is final unless
an appeal is filed by the applicant within 60 calendar days after sending.
new text end

new text begin Subd. 4. new text end

new text begin Benefit payment. new text end

new text begin If a determination or amended determination allows benefits
to an applicant, the family or medical leave benefits must be paid regardless of any appeal
period or any appeal having been filed.
new text end

new text begin Subd. 5. new text end

new text begin Overpayment. new text end

new text begin A determination or amended determination that holds an
applicant ineligible for benefits for periods an applicant has been paid benefits is an
overpayment of those family or medical leave benefits. A determination or amended
determination issued under this section that results in an overpayment of benefits must set
out the amount of the overpayment and the requirement that the overpaid benefits must be
repaid according to section 268B.185.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 16.

new text begin [268B.08] APPEAL PROCESS.
new text end

new text begin Subdivision 1. new text end

new text begin Hearing. new text end

new text begin (a) The commissioner shall designate a chief benefit judge.
new text end

new text begin (b) Upon a timely appeal to a determination having been filed or upon a referral for
direct hearing, the chief benefit judge must set a time and date for a de novo due-process
hearing and send notice to an applicant and an employer, by mail or electronic transmission,
not less than ten calendar days before the date of the hearing.
new text end

new text begin (c) The commissioner may adopt rules on procedures for hearings. The rules need not
conform to common law or statutory rules of evidence and other technical rules of procedure.
new text end

new text begin (d) The chief benefit judge has discretion regarding the method by which the hearing is
conducted.
new text end

new text begin Subd. 2. new text end

new text begin Decision. new text end

new text begin (a) After the conclusion of the hearing, upon the evidence obtained,
the benefit judge must serve by mail or electronic transmission to all parties the decision,
reasons for the decision, and written findings of fact.
new text end

new text begin (b) Decisions of a benefit judge are not precedential.
new text end

new text begin Subd. 3. new text end

new text begin Request for reconsideration. new text end

new text begin Any party, or the commissioner, may, within
30 calendar days after service of the benefit judge's decision, file a request for reconsideration
asking the judge to reconsider that decision.
new text end

new text begin Subd. 4. new text end

new text begin Appeal to court of appeals. new text end

new text begin Any final determination on a request for
reconsideration may be appealed by any party directly to the Minnesota Court of Appeals.
new text end

new text begin Subd. 5. new text end

new text begin Benefit judges. new text end

new text begin (a) Only employees of the department who are attorneys licensed
to practice law in Minnesota may serve as a chief benefit judge, senior benefit judges who
are supervisors, or benefit judges.
new text end

new text begin (b) The chief benefit judge must assign a benefit judge to conduct a hearing and may
transfer to another benefit judge any proceedings pending before another benefit judge.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 17.

new text begin [268B.085] LEAVE.
new text end

new text begin Subdivision 1. new text end

new text begin Right to leave. new text end

new text begin (a) Ninety calendar days from the date of hire, an employee
has a right to leave from employment for any day, or portion of a day, for which:
new text end

new text begin (1) the employee meets the eligibility criteria under section 268B.06, subdivision 1,
clause (2); or
new text end

new text begin (2) the employee has applied for benefits in good faith under this chapter. For the purposes
of this subdivision, good faith is defined as anything that is not knowingly false or in reckless
disregard of the truth.
new text end

new text begin (b) Notwithstanding paragraph (a), an employee no longer has a right to leave following
a denial of benefits by a benefit judge. The employee's right to leave under this section is
not to exceed the maximum length of benefits under section 268B.04, subdivision 5.
new text end

new text begin Subd. 2. new text end

new text begin Notice to employer. new text end

new text begin (a) If the need for leave is foreseeable, an employee must
provide the employer at least 30 days' advance notice before leave under this chapter is to
begin. If 30 days' notice is not practicable because of a lack of knowledge of approximately
when leave will be required to begin, a change in circumstances, or a medical emergency,
notice must be given as soon as practicable. Whether leave is to be continuous or is to be
taken intermittently or on a reduced-schedule basis, notice need only be given one time, but
the employee must advise the employer as soon as practicable if dates of scheduled leave
change or are extended, or were initially unknown. In those cases where the employee is
required to provide at least 30 days' notice of foreseeable leave and does not do so, the
employee must explain the reasons why notice was not practicable upon request from the
employer.
new text end

new text begin (b) "As soon as practicable" means as soon as both possible and practical, taking into
account all of the facts and circumstances in the individual case. When an employee becomes
aware of a need for leave under this chapter less than 30 days in advance, it should be
practicable for the employee to provide notice of the need for leave either the same day or
the next day, unless the need for leave is based on a medical emergency. In all cases,
however, the determination of when an employee could practicably provide notice must
take into account the individual facts and circumstances.
new text end

new text begin (c) An employee shall provide at least oral, telephone, or text message notice sufficient
to make the employer aware that the employee needs leave allowed under this chapter and
the anticipated timing and duration of the leave.
new text end

new text begin (d) An employer may require an employee to comply with the employer's usual and
customary notice and procedural requirements for requesting leave, absent unusual
circumstances or other circumstances caused by the reason for the employee's need for
leave. Leave under this chapter must not be delayed or denied where an employer's usual
and customary notice or procedural requirements require notice to be given sooner than set
forth in this subdivision.
new text end

new text begin (e) An employer may require that an employee taking leave under this chapter provide
a copy of the certification under section 268B.06, subdivision 3. Upon a written request
from the employer, the employee shall provide a copy of the certification as soon as
practicable given all of the facts and circumstances in the individual situation. Providing
certification at or around the time the employee provides a certification to the department
is considered practicable. In addition to any prohibition imposed under section 268B.09,
an employer must not discharge, discipline, penalize, interfere with, threaten, restrain,
coerce, or otherwise retaliate or discriminate against an employee for providing this
certification.
new text end

new text begin (f) If an employer has failed to provide notice to the employee as required under section
268B.26, paragraph (a), (b), or (e), the employee is not required to comply with the notice
requirements of this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Bonding leave. new text end

new text begin Bonding leave taken under this chapter begins at a time requested
by the employee. Bonding leave must end within 12 months of the birth, adoption, or
placement of a foster child, except that, in the case where the child must remain in the
hospital longer than the mother, the leave must end within 12 months after the child leaves
the hospital. Employees may also use bonding leave under this chapter before the actual
placement or adoption of a child in situations that include but are not limited to an employee's
requirement to: attend counseling sessions; appear in court; consult with any attorney or
doctor representing the birth parent; submit to a physical examination; or travel to another
country to complete an adoption.
new text end

new text begin Subd. 4. new text end

new text begin Intermittent or reduced-leave schedule. new text end

new text begin (a) Leave under this chapter, based
on a serious health condition, may be taken intermittently or on a reduced-leave schedule
if such leave is reasonable and appropriate to the needs of the individual with the serious
health condition. For all other leaves under this chapter, leave may be taken intermittently
or on a reduced-leave schedule. Intermittent leave is leave taken in separate blocks of time
due to a single, seven-day qualifying event. A reduced-leave schedule is a leave schedule
that reduces an employee's usual number of working hours per workweek or hours per
workday.
new text end

new text begin (b) Leave taken intermittently or on a reduced-schedule basis counts toward the
maximums described in section 268B.04, subdivision 5.
new text end

new text begin (c) For applicants who take leave on an intermittent or reduced leave schedule, the
weekly benefit amount is prorated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 18.

new text begin [268B.09] EMPLOYMENT PROTECTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Retaliation prohibited. new text end

new text begin An employer must not discharge, discipline,
penalize, interfere with, threaten, restrain, coerce, or otherwise retaliate or discriminate
against an employee for requesting or obtaining benefits or leave, or for exercising any
other right under this chapter. In addition to the remedies provided in subdivision 8, the
commissioner of labor and industry may also issue a penalty to the employer of not less
than $1,000 and not more than $10,000 per violation, payable to the employee aggrieved.
In determining the amount of the penalty under this subdivision, the appropriateness of the
penalty to the size of the employer's business and the gravity of the violation shall be
considered.
new text end

new text begin Subd. 2. new text end

new text begin Interference prohibited. new text end

new text begin An employer must not obstruct or impede an
application for leave or benefits or the exercise of any other right under this chapter. In
addition to the remedies provided in subdivision 8, the commissioner of labor and industry
may also issue a penalty to the employer of not less than $1,000 and not more than $10,000
per violation, payable to the employee aggrieved. In determining the amount of the penalty
under this subdivision, the appropriateness of the penalty to the size of the employer's
business and the gravity of the violation shall be considered.
new text end

new text begin Subd. 3. new text end

new text begin Waiver of rights void. new text end

new text begin (a) Any agreement to waive, release, or commute rights
to benefits or any other right under this chapter is void, except for a voluntary settlement
agreement resolving disputed claims or a valid separation agreement releasing putative
claims.
new text end

new text begin (b) Any provision, whether oral or written, of a lease, contract, or other agreement or
instrument that purports to be a waiver by an individual of any right or remedy provided in
this chapter is contrary to public policy and void if the waiver or release purports to waive
claims arising out of acts or practices that occur after the execution of the waiver or release.
new text end

new text begin (c) A waiver or release of rights or remedies secured by this chapter that purports to
apply to claims arising out of acts or practices prior to, or concurrent with, the execution of
the waiver or release may be rescinded within 15 calendar days of its execution, except that
a waiver or release given in settlement of a claim filed with the department or with another
administrative agency or judicial body is valid and final upon execution. A waiving or
releasing party must be informed in writing of the right to rescind the waiver or release. To
be effective, the rescission must be in writing and delivered to the waived or released party
by hand, electronically with the receiving party's consent, or by mail within the 15-day
period. If delivered by mail, the rescission must be:
new text end

new text begin (1) postmarked within the 15-day period;
new text end

new text begin (2) properly addressed to the waived or released party; and
new text end

new text begin (3) sent by certified mail, return receipt requested.
new text end

new text begin Subd. 4. new text end

new text begin No assignment of benefits. new text end

new text begin Any assignment, pledge, or encumbrance of benefits
is void, except as provided under section 268B.10, subdivision 7. Benefits are exempt from
levy, execution, attachment, or any other remedy provided for the collection of debt. Any
waiver of this subdivision is void.
new text end

new text begin Subd. 5. new text end

new text begin Continued insurance. new text end

new text begin (a) During any leave for which an employee is entitled
to benefits or leave under this chapter, the employer must maintain coverage under any
group insurance policy, group subscriber contract, or health care plan for the employee and
any dependents as if the employee was not on leave, provided, however, that the employee
must continue to pay any employee share of the cost of such benefits.
new text end

new text begin (b) This subdivision may be waived for employees who are working in the construction
industry under a bona fide collective bargaining agreement that requires employer
contributions to a multiemployer health plan pursuant to United States Code, title 29, section
186(c)(5), but only if the waiver is set forth in clear and unambiguous terms in the collective
bargaining agreement and explicitly cites this subdivision.
new text end

new text begin Subd. 6. new text end

new text begin Employee right to reinstatement. new text end

new text begin (a) On return from leave under this chapter,
an employee is entitled to be returned to the same position the employee held when leave
commenced or to an equivalent position with equivalent benefits, pay, and other terms and
conditions of employment. An employee is entitled to reinstatement even if the employee
has been replaced or the employee's position has been restructured to accommodate the
employee's absence.
new text end

new text begin (b)(1) An equivalent position is one that is virtually identical to the employee's former
position in terms of pay, benefits, and working conditions, including privileges, prerequisites,
and status. It must involve the same or substantially similar duties and responsibilities,
which must entail substantially equivalent skill, effort, responsibility, and authority.
new text end

new text begin (2) If an employee is no longer qualified for the position because of the employee's
inability to attend a necessary course, renew a license, fly a minimum number of hours, or
similar condition, as a result of the leave, the employee must be given a reasonable
opportunity to fulfill those conditions upon return from leave.
new text end

new text begin (c)(1) An employee is entitled to any unconditional pay increases which may have
occurred during the leave period, such as cost of living increases. Pay increases conditioned
upon seniority, length of service, or work performed must be granted in accordance with
the employer's policy or practice with respect to other employees on an equivalent leave
status for a reason that does not qualify for leave under this chapter. An employee is entitled
to be restored to a position with the same or equivalent pay premiums, such as a shift
differential. If an employee departed from a position averaging ten hours of overtime, and
corresponding overtime pay, each week an employee is ordinarily entitled to such a position
on return from leave under this chapter.
new text end

new text begin (2) Equivalent pay includes any bonus or payment, whether it is discretionary or
nondiscretionary, made to employees consistent with clause (1). If a bonus or other payment
is based on the achievement of a specified goal such as hours worked, products sold, or
perfect attendance, and the employee has not met the goal due to leave under this chapter,
the payment may be denied, unless otherwise paid to employees on an equivalent leave
status for a reason that does not qualify for leave under this chapter.
new text end

new text begin (d) Benefits under this section include all benefits provided or made available to
employees by an employer, including group life insurance, health insurance, disability
insurance, sick leave, annual leave, educational benefits, and pensions, regardless of whether
benefits are provided by a practice or written policy of an employer through an employee
benefit plan as defined in section 3(3) of United States Code, title 29, section 1002(3).
new text end

new text begin (1) At the end of an employee's leave under this chapter, benefits must be resumed in
the same manner and at the same levels as provided when the leave began, and subject to
any changes in benefit levels that may have taken place during the period of leave affecting
the entire workforce, unless otherwise elected by the employee. Upon return from a leave
under this chapter, an employee must not be required to requalify for any benefits the
employee enjoyed before leave began, including family or dependent coverages.
new text end

new text begin (2) An employee may, but is not entitled to, accrue any additional benefits or seniority
during a leave under this chapter. Benefits accrued at the time leave began must be available
to an employee upon return from leave.
new text end

new text begin (3) With respect to pension and other retirement plans, leave under this chapter must
not be treated as or counted toward a break in service for purposes of vesting and eligibility
to participate. If the plan requires an employee to be employed on a specific date in order
to be credited with a year of service for vesting, contributions, or participation purposes,
an employee on leave under this chapter must be treated as employed on that date. Periods
of leave under this chapter need not be treated as credited service for purposes of benefit
accrual, vesting, and eligibility to participate.
new text end

new text begin (4) Employees on leave under this chapter must be treated as if they continued to work
for purposes of changes to benefit plans. Employees on leave under this chapter are entitled
to changes in benefit plans, except those which may be dependent upon seniority or accrual
during the leave period, immediately upon return from leave or to the same extent they
would have qualified if no leave had been taken.
new text end

new text begin (e) An equivalent position must have substantially similar duties, conditions,
responsibilities, privileges, and status as the employee's original position.
new text end

new text begin (1) The employee must be reinstated to the same or a geographically proximate worksite
from where the employee had previously been employed. If the employee's original worksite
has been closed, the employee is entitled to the same rights as if the employee had not been
on leave when the worksite closed.
new text end

new text begin (2) The employee is ordinarily entitled to return to the same shift or the same or an
equivalent work schedule.
new text end

new text begin (3) The employee must have the same or an equivalent opportunity for bonuses,
profit-sharing, and other similar discretionary and nondiscretionary payments.
new text end

new text begin (4) This chapter does not prohibit an employer from accommodating an employee's
request to be restored to a different shift, schedule, or position which better suits the
employee's personal needs on return from leave, or to offer a promotion to a better position.
However, an employee must not be induced by the employer to accept a different position
against the employee's wishes.
new text end

new text begin (f) The requirement that an employee be restored to the same or equivalent job with the
same or equivalent pay, benefits, and terms and conditions of employment does not extend
to de minimis, intangible, or unmeasurable aspects of the job.
new text end

new text begin (g) Nothing in this section shall be deemed to affect the Americans with Disabilities
Act, United States Code, title 42, chapter 126.
new text end

new text begin (h) This subdivision and subdivision 7 may be waived for employees who are working
in the construction industry under a bona fide collective bargaining agreement with a
construction trade union that maintains a referral-to-work procedure for employees to obtain
employment with multiple signatory employers, but only if the waiver is set forth in clear
and unambiguous terms in the collective bargaining agreement and explicitly cites this
subdivision and subdivision 7.
new text end

new text begin Subd. 7. new text end

new text begin Limitations on an employee's right to reinstatement. new text end

new text begin An employee has no
greater right to reinstatement or to other benefits and conditions of employment than if the
employee had been continuously employed during the period of leave under this chapter.
An employer must be able to show that an employee would not otherwise have been
employed at the time reinstatement is requested in order to deny restoration to employment.
new text end

new text begin (1) If an employee is laid off during the course of taking a leave under this chapter and
employment is terminated, the employer's responsibility to continue the leave, maintain
group health plan benefits, and restore the employee cease at the time the employee is laid
off, provided the employer has no continuing obligations under a collective bargaining
agreement or otherwise. An employer has the burden of proving that an employee would
have been laid off during the period of leave under this chapter and, therefore, would not
be entitled to restoration to a job slated for layoff when the employee's original position
would not meet the requirements of an equivalent position.
new text end

new text begin (2) If a shift has been eliminated or overtime has been decreased, an employee would
not be entitled to return to work that shift or the original overtime hours upon restoration.
However, if a position on, for example, a night shift has been filled by another employee,
the employee is entitled to return to the same shift on which employed before taking leave
under this chapter.
new text end

new text begin (3) If an employee was hired for a specific term or only to perform work on a discrete
project, the employer has no obligation to restore the employee if the employment term or
project is over and the employer would not otherwise have continued to employ the employee.
new text end

new text begin Subd. 8. new text end

new text begin Remedies. new text end

new text begin (a) In addition to any other remedies available to an employee in
law or equity, an employer who violates the provisions of this section is liable to any
employee affected for:
new text end

new text begin (1) damages equal to the amount of:
new text end

new text begin (i) any and all damages recoverable by law;
new text end

new text begin (ii) reasonable interest on the amount of damages awarded; and
new text end

new text begin (iii) an additional amount as liquidated damages equal to the sum of the amount described
in item (i) and the interest described in item (ii), except that if an employer who has violated
the provisions of this section proves to the satisfaction of the court that the act or omission
which violated the provisions of this section was in good faith and that the employer had
reasonable grounds for believing that the act or omission was not a violation of the provisions
of this section, the court may, in the discretion of the court, reduce the amount of the liability
to the amount and interest determined under items (i) and (ii), respectively; and
new text end

new text begin (2) such injunctive and other equitable relief as determined by a court or jury, including
employment, reinstatement, and promotion.
new text end

new text begin (b) An action to recover damages or equitable relief prescribed in paragraph (a) may be
maintained against any employer in any federal or state court of competent jurisdiction by
any one or more employees for and on behalf of:
new text end

new text begin (1) the employees; or
new text end

new text begin (2) the employees and other employees similarly situated.
new text end

new text begin Rule 23 of the Rules of Civil Procedure applies to this section.
new text end

new text begin (c) The court in an action under this section must, in addition to any judgment awarded
to the plaintiff or plaintiffs, allow reasonable attorney fees, reasonable expert witness fees,
and other costs of the action to be paid by the defendant.
new text end

new text begin (d) Nothing in this section shall be construed to allow an employee to recover damages
from an employer for the denial of benefits under this chapter by the department, unless the
employer unlawfully interfered with the application for benefits under subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 19.

new text begin [268B.10] SUBSTITUTION OF A PRIVATE PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Application for substitution. new text end

new text begin Employers may apply to the commissioner
for approval to meet their obligations under this chapter through the substitution of a private
plan that provides paid family, paid medical, or paid family and medical benefits. In order
to be approved as meeting an employer's obligations under this chapter, a private plan must
confer all of the same rights, protections, and benefits provided to employees under this
chapter, including but not limited to benefits under section 268B.04 and employment
protections under section 268B.09. Employers may apply for approval of private plans that
exceed the benefits provided to employees under this chapter. An employee covered by a
private plan under this section retains all applicable rights and remedies under section
268B.09.
new text end

new text begin Subd. 2. new text end

new text begin Private plan requirements; medical benefit program. new text end

new text begin The commissioner,
in consultation with the commissioner of commerce, must approve an application for private
provision of the medical benefit program if the commissioner determines:
new text end

new text begin (1) all of the employees of the employer are to be covered under the provisions of the
employer plan;
new text end

new text begin (2) eligibility requirements for benefits and leave are no more restrictive than as provided
under this chapter;
new text end

new text begin (3) the weekly benefits payable under the private plan for any week are at least equal to
the weekly benefit amount payable under this chapter, taking into consideration any coverage
with respect to concurrent employment by another employer;
new text end

new text begin (4) the total number of weeks for which benefits are payable under the private plan is
at least equal to the total number of weeks for which benefits would have been payable
under this chapter;
new text end

new text begin (5) no greater amount is required to be paid by employees toward the cost of benefits
under the employer plan than by this chapter;
new text end

new text begin (6) wage replacement benefits are stated in the plan separately and distinctly from other
benefits;
new text end

new text begin (7) the private plan will provide benefits and leave for any serious health condition or
pregnancy for which benefits are payable, and leave provided, under this chapter;
new text end

new text begin (8) the private plan will impose no additional condition or restriction on the use of
medical benefits beyond those explicitly authorized by this chapter or regulations
promulgated pursuant to this chapter;
new text end

new text begin (9) the private plan will allow any employee covered under the private plan who is
eligible to receive medical benefits under this chapter to receive medical benefits under the
employer plan; and
new text end

new text begin (10) coverage will continue under the private plan while an employee remains employed
by the employer.
new text end

new text begin Subd. 3. new text end

new text begin Private plan requirements; family benefit program. new text end

new text begin The commissioner, in
consultation with the commissioner of commerce, must approve an application for private
provision of the family benefit program if the commissioner determines:
new text end

new text begin (1) all of the employees of the employer are to be covered under the provisions of the
employer plan;
new text end

new text begin (2) eligibility requirements for benefits and leave are no more restrictive than as provided
under this chapter;
new text end

new text begin (3) the weekly benefits payable under the private plan for any week are at least equal to
the weekly benefit amount payable under this chapter, taking into consideration any coverage
with respect to concurrent employment by another employer;
new text end

new text begin (4) the total number of weeks for which benefits are payable under the private plan is
at least equal to the total number of weeks for which benefits would have been payable
under this chapter;
new text end

new text begin (5) no greater amount is required to be paid by employees toward the cost of benefits
under the employer plan than by this chapter;
new text end

new text begin (6) wage replacement benefits are stated in the plan separately and distinctly from other
benefits;
new text end

new text begin (7) the private plan will provide benefits and leave for any care for a family member
with a serious health condition, bonding with a child, qualifying exigency, or safety leave
event for which benefits are payable, and leave provided, under this chapter;
new text end

new text begin (8) the private plan will impose no additional condition or restriction on the use of family
benefits beyond those explicitly authorized by this chapter or regulations promulgated
pursuant to this chapter;
new text end

new text begin (9) the private plan will allow any employee covered under the private plan who is
eligible to receive family benefits under this chapter to receive family benefits under the
employer plan; and
new text end

new text begin (10) coverage will continue under the private plan while an employee remains employed
by the employer.
new text end

new text begin Subd. 4. new text end

new text begin Surety bond requirement. new text end

new text begin If the private plan is in the form of self-insurance,
the employer shall file with its application for private provision of the medical benefit or
family benefit program a surety bond in an amount equal to the employer's annual premium
that it would otherwise be required to pay to the family and medical benefit insurance
account. The surety bond must be in a form approved by the commissioner and issued by
a surety company authorized to transact business in Minnesota.
new text end

new text begin Subd. 5. new text end

new text begin Private plan requirements; timing of payment; intermittent leave
increments; and weekly benefit determination.
new text end

new text begin (a) Private plan benefits under this section
may be paid to align with the employer's payroll cycle or according to the terms of the
approved private plan.
new text end

new text begin (b) Intermittent leave under a private plan may be taken in the minimum increment the
employer offers to employees for other types of leave, not to exceed the eight-hour minimum
increment under section 268B.04, subdivision 6.
new text end

new text begin (c) For purposes of determining the family and medical benefit amount and duration
under a private plan, the weekly benefit amount and duration must be based on the employee's
typical workweek and wages earned with the employer at the time of an application for
benefits or over the past 52-week calendar year, whichever calculation results in the highest
benefit amount for the employee. If an employer does not have complete wage information
for the full calendar year, the employer must accept an employee's certification of wage
credits, based upon the employee's records.
new text end

new text begin Subd. 6. new text end

new text begin Use of private insurance products. new text end

new text begin Nothing in this section prohibits an
employer from meeting the requirements of a private plan through a private insurance
product. If the employer plan involves a private insurance product, that insurance product's
policy form must be approved by the commissioner of commerce and issued by an insurance
company authorized to transact insurance in this state.
new text end

new text begin Subd. 7. new text end

new text begin Private plan approval and oversight fee. new text end

new text begin An employer with an approved
private plan is not required to pay premiums established under section 268B.14. An employer
with an approved private plan is responsible for a private plan approval and oversight fee
equal to $250 for employers with fewer than 50 employees, $500 for employers with 50 to
499 employees, and $1,000 for employers with 500 or more employees. The employer must
pay this fee (1) upon initial application for private plan approval, and (2) any time the
employer applies to amend the private plan. The commissioner must review and report on
the adequacy of this fee to cover private plan administrative costs annually beginning July
1, 2025, as part of the annual report established in section 268B.24.
new text end

new text begin Subd. 8. new text end

new text begin Plan duration. new text end

new text begin A private plan under this section must be in effect for a period
of at least one year and, thereafter, continuously unless the commissioner finds that the
employer has given notice of withdrawal from the plan in a manner specified by the
commissioner in this section or rule. The plan may be withdrawn by the employer within
30 days of the effective date of any law increasing the benefit amounts or within 30 days
of the date of any change in the rate of premiums. If the plan is not withdrawn, it must be
administered to provide the increased benefit amount or change in the rate of the employee's
premium on the date of the increase or change.
new text end

new text begin Subd. 9. new text end

new text begin Employer reimbursement. new text end

new text begin If an employer meeting the requirements of a
private plan through an insurance product under subdivision 6 has made advance payments
of benefits due under this chapter or has made payments to an employee in like manner as
wages during any period of family or medical leave for which the employee is entitled to
the benefits provided by this chapter, the employer is entitled to be reimbursed by the carrier
or third party administrator out of any benefits due or to become due for the family or
medical leave, if the claim for reimbursement is filed with the carrier prior to payment of
the benefits by the carrier.
new text end

new text begin Subd. 10. new text end

new text begin Appeals. new text end

new text begin (a) An employer may appeal any adverse action regarding that
employer's application for private provision of the medical benefit or family benefit program,
in a manner specified by the commissioner.
new text end

new text begin (b) An employee covered under a private plan has the same right to appeal to the state
under section 268B.04, subdivision 7, as any other employee. An employee covered under
a private plan has the right to request reconsideration of a decision under a private plan
made by an insurer, private plan administrator, or employer prior to exercising appeal rights
under section 268B.04.
new text end

new text begin Subd. 11. new text end

new text begin Employees no longer covered. new text end

new text begin (a) An employee is no longer covered by an
approved private plan if a leave under this chapter occurs after the employment relationship
with the private plan employer ends, or if the commissioner revokes the approval of the
private plan.
new text end

new text begin (b) An employee no longer covered by an approved private plan is, if otherwise eligible,
immediately entitled to benefits under this chapter to the same extent as though there had
been no approval of the private plan.
new text end

new text begin Subd. 12. new text end

new text begin Posting of notice regarding private plan. new text end

new text begin An employer with a private plan
must provide a notice prepared by or approved by the commissioner regarding the private
plan consistent with section 268B.26.
new text end

new text begin Subd. 13. new text end

new text begin Amendment. new text end

new text begin (a) The commissioner must approve any amendment to a private
plan adjusting the provisions thereof, if the commissioner determines:
new text end

new text begin (1) that the plan, as amended, will conform to the standards set forth in this chapter; and
new text end

new text begin (2) that notice of the amendment has been delivered to all affected employees at least
ten days before the submission of the amendment.
new text end

new text begin (b) Any amendments approved under this subdivision are effective on the date of the
commissioner's approval, unless the commissioner and the employer agree on a later date.
new text end

new text begin Subd. 14. new text end

new text begin Successor employer. new text end

new text begin A private plan in effect at the time a successor acquires
the employer organization, trade, or business, or substantially all the assets thereof, or a
distinct and severable portion of the organization, trade, or business, and continues its
operation without substantial reduction of personnel resulting from the acquisition, must
continue the approved private plan and must not withdraw the plan without a specific request
for withdrawal in a manner and at a time specified by the commissioner. A successor may
terminate a private plan with notice to the commissioner and within 90 days from the date
of the acquisition.
new text end

new text begin Subd. 15. new text end

new text begin Revocation of approval by commissioner. new text end

new text begin (a) The commissioner may
terminate any private plan if the commissioner determines the employer:
new text end

new text begin (1) failed to pay benefits;
new text end

new text begin (2) failed to pay benefits in a timely manner, consistent with the requirements of this
chapter;
new text end

new text begin (3) failed to submit reports as required by this chapter or rule adopted under this chapter;
or
new text end

new text begin (4) otherwise failed to comply with this chapter or rule adopted under this chapter.
new text end

new text begin (b) The commissioner must give notice of the intention to terminate a plan to the employer
at least ten days before taking any final action. The notice must state the effective date and
the reason for the termination.
new text end

new text begin (c) The employer may, within ten days from mailing or personal service of the notice,
file an appeal to the commissioner in the time, manner, method, and procedure provided by
the commissioner under subdivision 7.
new text end

new text begin (d) The payment of benefits must not be delayed during an employer's appeal of the
revocation of approval of a private plan.
new text end

new text begin (e) If the commissioner revokes approval of an employer's private plan, that employer
is ineligible to apply for approval of another private plan for a period of three years, beginning
on the date of revocation.
new text end

new text begin Subd. 16. new text end

new text begin Employer penalties. new text end

new text begin (a) The commissioner may assess the following monetary
penalties against an employer with an approved private plan found to have violated this
chapter:
new text end

new text begin (1) $1,000 for the first violation; and
new text end

new text begin (2) $2,000 for the second, and each successive violation.
new text end

new text begin (b) The commissioner must waive collection of any penalty if the employer corrects the
violation within 30 days of receiving a notice of the violation and the notice is for a first
violation.
new text end

new text begin (c) The commissioner may waive collection of any penalty if the commissioner determines
the violation to be an inadvertent error by the employer.
new text end

new text begin (d) Monetary penalties collected under this section shall be deposited in the family and
medical benefit insurance account.
new text end

new text begin (e) Assessment of penalties under this subdivision may be appealed as provided by the
commissioner under subdivision 7.
new text end

new text begin Subd. 17. new text end

new text begin Reports, information, and records. new text end

new text begin Employers with an approved private
plan must maintain all reports, information, and records as relating to the private plan and
claims for a period of six years from creation and provide to the commissioner upon request.
new text end

new text begin Subd. 18. new text end

new text begin Audit and investigation. new text end

new text begin The commissioner may investigate and audit plans
approved under this section both before and after the plans are approved.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2024.
new text end

Sec. 20.

new text begin [268B.11] SELF-EMPLOYED AND INDEPENDENT CONTRACTOR
ELECTION OF COVERAGE.
new text end

new text begin Subdivision 1. new text end

new text begin Election of coverage. new text end

new text begin (a) A self-employed individual or independent
contractor may file with the commissioner by electronic transmission in a format prescribed
by the commissioner an application to be entitled to benefits under this chapter for a period
not less than 104 consecutive calendar weeks. Upon the approval of the commissioner, sent
by United States mail or electronic transmission, the individual is entitled to benefits under
this chapter beginning the calendar quarter after the date of approval or beginning in a later
calendar quarter if requested by the self-employed individual or independent contractor.
The individual ceases to be entitled to benefits as of the first day of January of any calendar
year only if, at least 30 calendar days before the first day of January, the individual has filed
with the commissioner by electronic transmission in a format prescribed by the commissioner
a notice to that effect.
new text end

new text begin (b) The commissioner may terminate any application approved under this section with
30 calendar days' notice sent by United States mail or electronic transmission if the
self-employed individual is delinquent on any premiums due under this chapter. If an
approved application is terminated in this manner during the first 104 consecutive calendar
weeks of election, the self-employed individual remains obligated to pay the premium under
subdivision 3 for the remainder of that 104-week period.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin A self-employed individual who applies for coverage under this
section must provide the commissioner with (1) the amount of the individual's net earnings
from self-employment, if any, from the two most recent taxable years and all tax documents
necessary to prove the accuracy of the amounts reported, and (2) any other documentation
the commissioner requires. A self-employed individual who is covered under this chapter
must annually provide the commissioner with the amount of the individual's net earnings
from self-employment within 30 days of filing a federal income tax return.
new text end

new text begin Subd. 3. new text end

new text begin Premium. new text end

new text begin A self-employed individual who elects to receive coverage under
this chapter must annually pay a premium equal to one-half the percentage in section
268B.14, subdivision 6, clause (1), times the lesser of:
new text end

new text begin (1) the individual's self-employment premium base; or
new text end

new text begin (2) the maximum earnings subject to the FICA Old-Age, Survivors, and Disability
Insurance tax.
new text end

new text begin Subd. 4. new text end

new text begin Benefits. new text end

new text begin Notwithstanding anything to the contrary, a self-employed individual
who has applied to and been approved for coverage by the commissioner under this section
is entitled to benefits on the same basis as an employee under this chapter, except that a
self-employed individual's weekly benefit amount under section 268B.04, subdivision 1,
must be calculated as a percentage of the self-employed individual's self-employment
premium base, rather than wages.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 21.

new text begin [268B.12] WAGE REPORTING.
new text end

new text begin Subdivision 1. new text end

new text begin Wage detail report. new text end

new text begin (a) Each employer must submit, under the employer
premium account described in section 268B.13, a quarterly wage detail report by electronic
transmission, in a format prescribed by the commissioner. The report must include for each
employee in covered employment during the calendar quarter, the employee's name, the
total wages paid to the employee, and total number of paid hours worked. For employees
exempt from the definition of employee in section 177.23, subdivision 7, clause (6), the
employer must report 40 hours worked for each week any duties were performed by a
full-time employee and must report a reasonable estimate of the hours worked for each
week duties were performed by a part-time employee. In addition, the wage detail report
must include the number of employees employed during the payroll period that includes
the 12th day of each calendar month and, if required by the commissioner, the report must
be broken down by business location and separate business unit. The report is due and must
be received by the commissioner on or before the last day of the month following the end
of the calendar quarter. The commissioner may delay the due date on a specific calendar
quarter in the event the department is unable to accept wage detail reports electronically.
new text end

new text begin (b) The employer may report the wages paid to the next lower whole dollar amount.
new text end

new text begin (c) An employer need not include the name of the employee or other required information
on the wage detail report if disclosure is specifically exempted from being reported by
federal law.
new text end

new text begin (d) A wage detail report must be submitted for each calendar quarter even though no
wages were paid, unless the business has been terminated.
new text end

new text begin Subd. 2. new text end

new text begin Electronic transmission of report required. new text end

new text begin Each employer must submit the
quarterly wage detail report by electronic transmission in a format prescribed by the
commissioner. The commissioner has the discretion to accept wage detail reports that are
submitted by any other means or the commissioner may return the report submitted by other
than electronic transmission to the employer, and reports returned are considered as not
submitted and the late fees under subdivision 3 may be imposed.
new text end

new text begin Subd. 3. new text end

new text begin Failure to timely file report; late fees. new text end

new text begin (a) Any employer that fails to submit
the quarterly wage detail report when due must pay a late fee of $10 per employee, computed
based upon the highest of:
new text end

new text begin (1) the number of employees reported on the last wage detail report submitted;
new text end

new text begin (2) the number of employees reported in the corresponding quarter of the prior calendar
year; or
new text end

new text begin (3) if no wage detail report has ever been submitted, the number of employees listed at
the time of employer registration.
new text end

new text begin The late fee is canceled if the wage detail report is received within 30 calendar days after
a demand for the report is sent to the employer by mail or electronic transmission. A late
fee assessed an employer may not be canceled more than twice each 12 months. The amount
of the late fee assessed may not be less than $250.
new text end

new text begin (b) If the wage detail report is not received in a manner and format prescribed by the
commissioner within 30 calendar days after demand is sent under paragraph (a), the late
fee assessed under paragraph (a) doubles and a renewed demand notice and notice of the
increased late fee will be sent to the employer by mail or electronic transmission.
new text end

new text begin (c) Late fees due under this subdivision may be canceled, in whole or in part, under
section 268B.16.
new text end

new text begin Subd. 4. new text end

new text begin Missing or erroneous information. new text end

new text begin (a) Any employer that submits the wage
detail report, but fails to include all required employee information or enters erroneous
information, may be subject to an administrative service fee of $25 for each employee for
whom the information is partially missing or erroneous.
new text end

new text begin (b) Any employer that submits the wage detail report, but fails to include an employee,
may be subject to an administrative service fee equal to two percent of the total wages for
each employee for whom the information is completely missing.
new text end

new text begin (c) An employer shall not be subject to any penalty under this section upon a reasonable
showing that the employer's act or omission that violated this section was in good faith or
that the employer had reasonable grounds for believing that the act was not a violation of
this section.
new text end

new text begin Subd. 5. new text end

new text begin Fees. new text end

new text begin The fees provided for in subdivisions 3 and 4 are in addition to interest
and other penalties imposed by this chapter and are collected in the same manner as
delinquent taxes and credited to the family and medical benefit insurance account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 22.

new text begin [268B.13] EMPLOYER PREMIUM ACCOUNTS.
new text end

new text begin The commissioner must maintain a premium account for each employer, except for an
employer with an approved private plan under section 268B.10. The commissioner must
assess the premium account for all the premiums due under section 268B.14, and credit the
family and medical benefit insurance account with all premiums paid.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 23.

new text begin [268B.14] PREMIUMS.
new text end

new text begin Subdivision 1. new text end

new text begin Payments. new text end

new text begin (a) Family and medical leave premiums accrue and become
payable by each employer, except for an employer with an approved private plan under
section 268B.10, for each calendar year on the taxable wages that the employer paid to
employees in covered employment.
new text end

new text begin Each employer must pay premiums quarterly, at the premium rate defined under this
section, on the taxable wages paid to each employee. The commissioner must compute the
premium due from the wage detail report required under section 268B.12 and notify the
employer of the premium due. The premiums must be paid to the family and medical benefit
insurance account and must be received by the department on or before the last day of the
month following the end of the calendar quarter.
new text end

new text begin (b) If for any reason the wages on the wage detail report under section 268B.12 are
adjusted for any quarter, the commissioner must recompute the premiums due for that quarter
and assess the employer for any amount due or credit the employer as appropriate.
new text end

new text begin Subd. 2. new text end

new text begin Payments by electronic payment required. new text end

new text begin (a) Every employer must make
any payments due under this chapter by electronic payment.
new text end

new text begin (b) All third-party processors, paying on behalf of a client company, must make any
payments due under this chapter by electronic payment.
new text end

new text begin (c) Regardless of paragraph (a) or (b), the commissioner has the discretion to accept
payment by other means.
new text end

new text begin Subd. 3. new text end

new text begin Employee charge back. new text end

new text begin Notwithstanding section 177.24, subdivision 4, or
181.06, subdivision 1, employers must pay a minimum of 50 percent of the annual premiums
paid under this section. Employees, through a deduction in their wages to the employer,
must pay the remaining portion, if any, of the premium not paid by the employer. Such
deductions for any given employee must be in equal proportion to the premiums paid based
on the wages of that employee, and all employees of an employer must be subject to the
same percentage deduction. Deductions under this section must not cause an employee's
wage, after the deduction, to fall below the rate required to be paid to the worker by law,
including any applicable statute, regulation, rule, ordinance, government resolution or policy,
contract, or other legal authority, whichever rate of pay is greater.
new text end

new text begin Subd. 4. new text end

new text begin Wages and payments subject to premium. new text end

new text begin The maximum wages subject to
premium in a calendar year is equal to the maximum earnings in that year subject to the
FICA Old-Age, Survivors, and Disability Insurance tax.
new text end

new text begin Subd. 5. new text end

new text begin Small business wage exclusion. new text end

new text begin (a) For employers with fewer than 30
employees, the amount of wages on which the employer half of the quarterly premium is
required is reduced by the lesser of:
new text end

new text begin (1) $12,500 multiplied by the number of employees; or
new text end

new text begin (2) $120,000.
new text end

new text begin (b) For each employee over 20 employees, the exclusion is reduced by $12,000.
new text end

new text begin (c) The premium paid by the employer as a result of the reduction allowed under this
subdivision must not be less than zero.
new text end

new text begin (d) The reduction in premiums paid by the employer is for the sole benefit of the employer
and does not relieve the employer from deducting the employee portion of the premium.
new text end

new text begin Subd. 6. new text end

new text begin Annual premium rates. new text end

new text begin The premium rates beginning July 1, 2025, shall be
as follows:
new text end

new text begin (1) for both family and medical benefit programs, 0.7 percent;
new text end

new text begin (2) for only the medical benefit program and with an approved private plan for the family
benefit program, 0.57 percent; and
new text end

new text begin (3) for only the family benefit program and with an approved private plan for the medical
benefit program, 0.13 percent.
new text end

new text begin Subd. 7. new text end

new text begin Premium rate adjustments. new text end

new text begin (a) Beginning July 1, 2026, and by July 31 of
each year thereafter, the commissioner must adjust the annual premium rates using the
formula in paragraph (b).
new text end

new text begin (b) To calculate the employer rates for a calendar year, the commissioner must:
new text end

new text begin (1) multiply 1.45 times the amount disbursed from the family and medical benefit
insurance account for the 52-week period ending September 30 of the prior year;
new text end

new text begin (2) subtract the amount in the family and medical benefit insurance account on that
September 30 from the resulting figure;
new text end

new text begin (3) divide the resulting figure by the total wages in covered employment of employees
of employers without approved private plans under section 268B.10 for either the family
or medical benefit program. For employers with an approved private plan for either the
medical benefit program or the family benefit program, but not both, count only the
proportion of wages in covered employment associated with the program for which the
employer does not have an approved private plan; and
new text end

new text begin (4) round the resulting figure down to the nearest one-hundredth of one percent.
new text end

new text begin (c) The commissioner must apportion the premium rate between the family and medical
benefit programs based on the relative proportion of expenditures for each program during
the preceding year.
new text end

new text begin Subd. 8. new text end

new text begin Deposit of premiums. new text end

new text begin All premiums collected under this section must be
deposited into the family and medical benefit insurance account.
new text end

new text begin Subd. 9. new text end

new text begin Nonpayment of premiums by employer. new text end

new text begin The failure of an employer to pay
premiums does not impact the right of an employee to benefits, or any other right, under
this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 24.

new text begin [268B.145] INCOME TAX WITHHOLDING.
new text end

new text begin If the Internal Revenue Service determines that benefits are subject to federal income
tax, and an applicant elects to have federal income tax deducted and withheld from the
applicant's benefits, the commissioner must deduct and withhold the amount specified in
the Internal Revenue Code in a manner consistent with state law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 25.

new text begin [268B.15] COLLECTION OF PREMIUMS.
new text end

new text begin Subdivision 1. new text end

new text begin Amount computed presumed correct. new text end

new text begin Any amount due from an
employer, as computed by the commissioner, is presumed to be correctly determined and
assessed, and the burden is upon the employer to show its incorrectness. A statement by the
commissioner of the amount due is admissible in evidence in any court or administrative
proceeding and is prima facie evidence of the facts in the statement.
new text end

new text begin Subd. 2. new text end

new text begin Priority of payments. new text end

new text begin (a) Any payment received from an employer must be
applied in the following order:
new text end

new text begin (1) family and medical leave premiums under this chapter; then
new text end

new text begin (2) interest on past due premiums; then
new text end

new text begin (3) penalties, late fees, administrative service fees, and costs.
new text end

new text begin (b) Paragraph (a) is the priority used for all payments received from an employer,
regardless of how the employer may designate the payment to be applied, except when:
new text end

new text begin (1) there is an outstanding lien and the employer designates that the payment made
should be applied to satisfy the lien;
new text end

new text begin (2) the payment is specifically designated by the employer to be applied to an outstanding
overpayment of benefits of an applicant;
new text end

new text begin (3) a court or administrative order directs that the payment be applied to a specific
obligation;
new text end

new text begin (4) a preexisting payment plan provides for the application of payment; or
new text end

new text begin (5) the commissioner, under the compromise authority of section 268B.16, agrees to
apply the payment to a different priority.
new text end

new text begin Subd. 3. new text end

new text begin Estimating the premium due. new text end

new text begin Only if an employer fails to make all necessary
records available for an audit under section 268B.21 and the commissioner has reason to
believe the employer has not reported all the required wages on the quarterly wage detail
reports, may the commissioner then estimate the amount of premium due and assess the
employer the estimated amount due.
new text end

new text begin Subd. 4. new text end

new text begin Costs. new text end

new text begin (a) Any employer and any applicant subject to section 268B.185,
subdivision 2, that fails to pay any amount when due under this chapter is liable for any
filing fees, recording fees, sheriff fees, costs incurred by referral to any public or private
collection agency, or litigation costs, including attorney fees, incurred in the collection of
the amounts due.
new text end

new text begin (b) If any tendered payment of any amount due is not honored when presented to a
financial institution for payment, any costs assessed the department by the financial institution
and a fee of $25 must be assessed to the person.
new text end

new text begin (c) Costs and fees collected under this subdivision are credited to the enforcement account
under section 268B.185, subdivision 3.
new text end

new text begin Subd. 5. new text end

new text begin Interest on amounts past due. new text end

new text begin If any amounts due from an employer under
this chapter are not received on the date due, the commissioner must assess interest on any
amount that remains unpaid. Interest is assessed at the rate of one percent per month or any
part of a month. Interest is not assessed on unpaid interest. Interest collected under this
subdivision is credited to the account.
new text end

new text begin Subd. 6. new text end

new text begin Interest on judgments. new text end

new text begin Regardless of section 549.09, if a judgment is entered
upon any past due amounts from an employer under this chapter, the unpaid judgment bears
interest at the rate specified in subdivision 5 until the date of payment.
new text end

new text begin Subd. 7. new text end

new text begin Credit adjustments; refunds. new text end

new text begin (a) If an employer makes an application for a
credit adjustment of any amount paid under this chapter within four years of the date that
the payment was due, in a manner and format prescribed by the commissioner, and the
commissioner determines that the payment or any portion thereof was erroneous, the
commissioner must make an adjustment and issue a credit without interest. If a credit cannot
be used, the commissioner must refund, without interest, the amount erroneously paid. The
commissioner, on the commissioner's own motion, may make a credit adjustment or refund
under this subdivision.
new text end

new text begin (b) Any refund returned to the commissioner is considered unclaimed property under
chapter 345.
new text end

new text begin (c) If a credit adjustment or refund is denied in whole or in part, a determination of denial
must be sent to the employer by mail or electronic transmission. The determination of denial
is final unless an employer files an appeal within 20 calendar days after sending. Proceedings
on the appeal are conducted in accordance with section 268B.08.
new text end

new text begin (d) If an employer receives a credit adjustment or refund under this section, the employer
must determine the amount of any overpayment attributable to a deduction from employee
wages under section 268B.14, subdivision 3, and return any amount erroneously deducted
to each affected employee.
new text end

new text begin Subd. 8. new text end

new text begin Priorities under legal dissolutions or distributions. new text end

new text begin In the event of any
distribution of an employer's assets according to an order of any court, including any
receivership, assignment for benefit of creditors, adjudicated insolvency, or similar
proceeding, premiums then or thereafter due must be paid in full before all other claims
except claims for wages of not more than $1,000 per former employee, earned within six
months of the commencement of the proceedings. In the event of an employer's adjudication
in bankruptcy under federal law, premiums then or thereafter due are entitled to the priority
provided in that law for taxes due in any state.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 26.

new text begin [268B.155] CHILD SUPPORT DEDUCTION FROM BENEFITS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin As used in this section:
new text end

new text begin (1) "child support agency" means the public agency responsible for child support
enforcement, including federally approved comprehensive Tribal IV-D programs; and
new text end

new text begin (2) "child support obligations" means obligations that are being enforced by a child
support agency in accordance with a plan described in United States Code, title 42, sections
454 and 455 of the Social Security Act that has been approved by the secretary of health
and human services under part D of title IV of the Social Security Act. This does not include
any type of spousal maintenance or foster care payments.
new text end

new text begin Subd. 2. new text end

new text begin Notice upon application. new text end

new text begin In an application for family or medical leave benefits,
the applicant must disclose if child support obligations are owed and, if so, in what state
and county. If child support obligations are owed, the commissioner must, if the applicant
establishes a benefit account, notify the child support agency.
new text end

new text begin Subd. 3. new text end

new text begin Withholding of benefit. new text end

new text begin The commissioner must deduct and withhold from
any family or medical leave benefits payable to an applicant who owes child support
obligations:
new text end

new text begin (1) the amount required under a proper order of a court or administrative agency; or
new text end

new text begin (2) if clause (1) is not applicable, the amount determined under an agreement under
United States Code, title 42, section 454 (20)(B)(i), of the Social Security Act; or
new text end

new text begin (3) if clause (1) or (2) is not applicable, the amount specified by the applicant.
new text end

new text begin Subd. 4. new text end

new text begin Payment. new text end

new text begin Any amount deducted and withheld must be paid to the child support
agency, must for all purposes be treated as if it were paid to the applicant as family or
medical leave benefits and paid by the applicant to the child support agency in satisfaction
of the applicant's child support obligations.
new text end

new text begin Subd. 5. new text end

new text begin Payment of costs. new text end

new text begin The child support agency must pay the costs incurred by
the commissioner in the implementation and administration of this section and sections
518A.50 and 518A.53.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 27.

new text begin [268B.16] COMPROMISE.
new text end

new text begin (a) The commissioner may compromise in whole or in part any action, determination,
or decision that affects only an employer and not an applicant. This paragraph applies if it
is determined by a court of law, or a confession of judgment, that an applicant, while
employed, wrongfully took from the employer $500 or more in money or property.
new text end

new text begin (b) The commissioner may at any time compromise any premium or reimbursement due
from an employer under this chapter.
new text end

new text begin (c) Any compromise involving an amount over $10,000 must be authorized by an attorney
licensed to practice law in Minnesota who is an employee of the department designated by
the commissioner for that purpose.
new text end

new text begin (d) Any compromise must be in the best interest of the state of Minnesota.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 28.

new text begin [268B.17] ADMINISTRATIVE COSTS.
new text end

new text begin From July 1, 2025, through December 31, 2025, the commissioner may spend up to
seven percent of projected benefit payments during the period for the administration of this
chapter. Beginning January 1, 2026, and each calendar year thereafter, the commissioner
may spend up to seven percent of projected benefit payments for that calendar year for the
administration of this chapter. The department may enter into interagency agreements with
the Department of Labor and Industry, including agreements to transfer funds, subject to
the limit in this section, for the Department of Labor and Industry to fulfill its enforcement
authority of this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 29.

new text begin [268B.18] PUBLIC OUTREACH.
new text end

new text begin Beginning in fiscal year 2025, the commissioner must use at least 0.5 percent of projected
benefit payments under section 268B.17 for the purpose of outreach, education, and technical
assistance for employees, employers, and self-employed individuals eligible to elect coverage
under section 268B.11. The department may enter into interagency agreements with the
Department of Labor and Industry, including agreements to transfer funds, subject to the
limit in section 268B.17, to accomplish the requirements of this section. At least one-half
of the amount spent under this section must be used for grants to community-based groups.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 30.

new text begin [268B.185] BENEFIT OVERPAYMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Repaying an overpayment. new text end

new text begin (a) Any applicant who (1) because of a
determination or amended determination issued under this chapter, or (2) because of a
benefit law judge's decision under section 268B.08, has received any family or medical
leave benefits that the applicant was held not entitled to, is overpaid the benefits and must
promptly repay the benefits to the family and medical benefit insurance account.
new text end

new text begin (b) If the applicant fails to repay the benefits overpaid, including any penalty and interest
assessed under subdivisions 2 and 4, the total due may be collected by the methods allowed
under state and federal law.
new text end

new text begin Subd. 2. new text end

new text begin Overpayment because of misrepresentation. new text end

new text begin (a) An applicant has committed
misrepresentation if the applicant is overpaid benefits by making an intentional false
statement or representation in an effort to fraudulently collect benefits. Overpayment because
of misrepresentation does not occur where there is unintentional mistake with a good faith
belief as to the eligibility or correctness of the statement or representation.
new text end

new text begin (b) A determination of overpayment penalty must state the methods of collection the
commissioner may use to recover the overpayment, penalty, and interest assessed. Money
received in repayment of overpaid benefits, penalties, and interest is first applied to the
benefits overpaid, second to the penalty amount due, and third to any interest due.
new text end

new text begin (c) The department is authorized to issue a determination of overpayment penalty under
this subdivision within 12 months of the establishment of the benefit account upon which
the benefits were obtained through misrepresentation.
new text end

new text begin Subd. 3. new text end

new text begin Family and medical benefit insurance enforcement account created. new text end

new text begin The
family and medical benefit insurance enforcement account is created in the state treasury.
Any penalties and interest collected under this section shall be deposited into the account
under this subdivision and shall be used only for the purposes of administering and enforcing
this chapter. Only the commissioner may authorize expenditures from the account under
this subdivision.
new text end

new text begin Subd. 4. new text end

new text begin Interest. new text end

new text begin For any family and medical leave benefits obtained by
misrepresentation, and any penalty amounts assessed under subdivision 2, the commissioner
must assess interest on any amount that remains unpaid beginning 30 calendar days after
the date of a determination of overpayment penalty. Interest is assessed at the rate of six
percent per year. A determination of overpayment penalty must state that interest will be
assessed. Interest is not assessed on unpaid interest. Interest collected under this subdivision
is credited to the family and medical benefit insurance enforcement account.
new text end

new text begin Subd. 5. new text end

new text begin Offset of benefits. new text end

new text begin An employee may offset from any future family and medical
leave benefits otherwise payable the amount of an overpayment. No single offset may exceed
20 percent of the amount of the payment from which the offset is made.
new text end

new text begin Subd. 6. new text end

new text begin Cancellation of overpayments. new text end

new text begin (a) If family and medical leave benefits
overpayments are not repaid or offset from subsequent benefits within three years after the
date of the determination or decision holding the applicant overpaid, the commissioner must
cancel the overpayment balance, and no administrative or legal proceedings may be used
to enforce collection of those amounts.
new text end

new text begin (b) The commissioner may cancel at any time any overpayment, including penalties and
interest that the commissioner determines is uncollectible because of death or bankruptcy.
new text end

new text begin Subd. 7. new text end

new text begin Collection of overpayments. new text end

new text begin (a) The commissioner has discretion regarding
the recovery of any overpayment for reasons other than misrepresentation. Regardless of
any law to the contrary, the commissioner is not required to refer any overpayment for
reasons other than misrepresentation to a public or private collection agency, including
agencies of this state.
new text end

new text begin (b) Amounts overpaid for reasons other than misrepresentation are not considered a
"debt" to the state of Minnesota for purposes of any reporting requirements to the
commissioner of management and budget.
new text end

new text begin (c) A pending appeal under section 268B.08 does not suspend the assessment of interest,
penalties, or collection of an overpayment.
new text end

new text begin (d) Section 16A.626 applies to the repayment by an applicant of any overpayment,
penalty, or interest.
new text end

new text begin (e) In any case where the commissioner or the department has probable cause that any
applicant, employer, or other person has fraudulently obtained benefits, the commissioner
or the department must report the matter to the county attorney of jurisdiction for prosecution.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 31.

new text begin [268B.19] EMPLOYER MISCONDUCT; PENALTY.
new text end

new text begin (a) The commissioner must penalize an employer if that employer or any employee,
officer, or agent of that employer is in collusion with any applicant for the purpose of
assisting the applicant in receiving benefits fraudulently. The penalty is $500 or the amount
of benefits determined to be overpaid, whichever is greater.
new text end

new text begin (b) The commissioner must penalize an employer if that employer or any employee,
officer, or agent of that employer:
new text end

new text begin (1) made a false statement or representation knowing it to be false;
new text end

new text begin (2) made a false statement or representation without a good-faith belief as to the
correctness of the statement or representation; or
new text end

new text begin (3) knowingly failed to disclose a material fact.
new text end

new text begin (c) The penalty is the greater of $500 or 50 percent of the following resulting from the
employer's action:
new text end

new text begin (1) the amount of any overpaid benefits to an applicant;
new text end

new text begin (2) the amount of benefits not paid to an applicant that would otherwise have been paid;
or
new text end

new text begin (3) the amount of any payment required from the employer under this chapter that was
not paid.
new text end

new text begin (d) Penalties must be paid within 30 calendar days of issuance of the determination of
penalty and credited to the family and medical benefit insurance account.
new text end

new text begin (e) The determination of penalty is final unless the employer files an appeal within 30
calendar days after the sending of the determination of penalty to the employer by United
States mail or electronic transmission.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 32.

new text begin [268B.21] RECORDS; AUDITS.
new text end

new text begin Subdivision 1. new text end

new text begin Employer records; audits. new text end

new text begin (a) Each employer must keep true and accurate
records on individuals performing services for the employer, containing the information
the commissioner may require under this chapter. The records must be kept for a period of
not less than four years in addition to the current calendar year.
new text end

new text begin (b) For the purpose of administering this chapter, the commissioner has the power to
audit, examine, or cause to be supplied or copied, any books, correspondence, papers,
records, or memoranda that are the property of, or in the possession of, an employer or any
other person at any reasonable time and as often as may be necessary. Subpoenas may be
issued under section 268B.22 as necessary, for an audit.
new text end

new text begin (c) An employer or other person that refuses to allow an audit of its records by the
department or that fails to make all necessary records available for audit in the state upon
request of the commissioner may be assessed an administrative penalty of $500. The penalty
collected is credited to the family and medical benefit insurance account.
new text end

new text begin (d) An employer, or other person, that fails to provide a weekly breakdown of money
earned by an applicant upon request of the commissioner, information necessary for the
detection of applicant misrepresentation under section 268B.185, subdivision 2, may be
assessed an administrative penalty of $100. Any notice requesting a weekly breakdown
must clearly state that a $100 penalty may be assessed for failure to provide the information.
The penalty collected is credited to the family and medical benefit insurance account.
new text end

new text begin Subd. 2. new text end

new text begin Department records; destruction. new text end

new text begin (a) The commissioner may make summaries,
compilations, duplications, or reproductions of any records pertaining to this chapter that
the commissioner considers advisable for the preservation of the information.
new text end

new text begin (b) Regardless of any law to the contrary, the commissioner may destroy any records
that are no longer necessary for the administration of this chapter. In addition, the
commissioner may destroy any record from which the information has been electronically
captured and stored.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 33.

new text begin [268B.22] SUBPOENAS; OATHS.
new text end

new text begin (a) The commissioner or benefit judge has authority to administer oaths and affirmations,
take depositions, certify to official acts, and issue subpoenas to compel the attendance of
individuals and the production of documents and other personal property necessary in
connection with the administration of this chapter.
new text end

new text begin (b) Individuals subpoenaed, other than applicants or officers and employees of an
employer that is the subject of the inquiry, are paid witness fees the same as witness fees
in civil actions in district court. The fees need not be paid in advance.
new text end

new text begin (c) The subpoena is enforceable through the district court in Ramsey County.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 34.

new text begin [268B.23] LIEN; LEVY; SETOFF; AND CIVIL ACTION.
new text end

new text begin Subdivision 1. new text end

new text begin Lien. new text end

new text begin (a) Any amount due under this chapter, from an applicant or an
employer, becomes a lien upon all the property, within this state, both real and personal, of
the person liable, from the date of assessment. For the purposes of this section, "date of
assessment" means the date the obligation was due.
new text end

new text begin (b) The lien is not enforceable against any purchaser, mortgagee, pledgee, holder of a
Uniform Commercial Code security interest, mechanic's lien, or judgment lien creditor,
until a notice of lien has been filed with the county recorder of the county where the property
is situated, or in the case of personal property belonging to a nonresident person in the Office
of the Secretary of State. When the notice of lien is filed with the county recorder, the fee
for filing and indexing is as provided in sections 272.483 and 272.484.
new text end

new text begin (c) Notices of liens, lien renewals, and lien releases, in a form prescribed by the
commissioner, may be filed with the county recorder or the secretary of state by mail,
personal delivery, or electronic transmission into the computerized filing system of the
secretary of state. The secretary of state must, on any notice filed with that office, transmit
the notice electronically to the appropriate county recorder. The filing officer, whether the
county recorder or the secretary of state, must endorse and index a printout of the notice as
if the notice had been mailed or delivered.
new text end

new text begin (d) County recorders and the secretary of state must enter information on lien notices,
renewals, and releases into the central database of the secretary of state. For notices filed
electronically with the county recorders, the date and time of receipt of the notice and county
recorder's file number, and for notices filed electronically with the secretary of state, the
secretary of state's recording information, must be entered into the central database before
the close of the working day following the day of the original data entry by the commissioner.
new text end

new text begin (e) The lien imposed on personal property, even though properly filed, is not enforceable
against a purchaser of tangible personal property purchased at retail or personal property
listed as exempt in sections 550.37, 550.38, and 550.39.
new text end

new text begin (f) A notice of lien filed has priority over any security interest arising under chapter 336,
article 9, that is perfected prior in time to the lien imposed by this subdivision, but only if:
new text end

new text begin (1) the perfected security interest secures property not in existence at the time the notice
of lien is filed; and
new text end

new text begin (2) the property comes into existence after the 45th calendar day following the day the
notice of lien is filed, or after the secured party has actual notice or knowledge of the lien
filing, whichever is earlier.
new text end

new text begin (g) The lien is enforceable from the time the lien arises and for ten years from the date
of filing the notice of lien. A notice of lien may be renewed before expiration for an additional
ten years.
new text end

new text begin (h) The lien is enforceable by levy under subdivision 2 or by judgment lien foreclosure
under chapter 550.
new text end

new text begin (i) The lien may be imposed upon property defined as homestead property in chapter
510 but may be enforced only upon the sale, transfer, or conveyance of the homestead
property.
new text end

new text begin (j) The commissioner may sell and assign to a third party the commissioner's right of
redemption in specific real property for liens filed under this subdivision. The assignee is
limited to the same rights of redemption as the commissioner, except that in a bankruptcy
proceeding, the assignee does not obtain the commissioner's priority. Any proceeds from
the sale of the right of redemption are credited to the family and medical benefit insurance
account.
new text end

new text begin Subd. 2. new text end

new text begin Levy. new text end

new text begin (a) If any amount due under this chapter, from an applicant or an employer,
is not paid when due, the amount may be collected by the commissioner by direct levy upon
all property and rights of property of the person liable for the amount due except property
exempt from execution under section 550.37. For the purposes of this section, "levy" includes
the power of distraint and seizure by any means.
new text end

new text begin (b) In addition to a direct levy, the commissioner may issue a warrant to the sheriff of
any county who must proceed within 60 calendar days to levy upon the property or rights
to property of the delinquent person within the county, except property exempt under section
550.37. The sheriff must sell that property necessary to satisfy the total amount due, together
with the commissioner's and sheriff's costs. The sales are governed by the law applicable
to sales of like property on execution of a judgment.
new text end

new text begin (c) Notice and demand for payment of the total amount due must be mailed to the
delinquent person at least ten calendar days before action being taken under paragraphs (a)
and (b).
new text end

new text begin (d) If the commissioner has reason to believe that collection of the amount due is in
jeopardy, notice and demand for immediate payment may be made. If the total amount due
is not paid, the commissioner may proceed to collect by direct levy or issue a warrant without
regard to the ten calendar day period.
new text end

new text begin (e) In executing the levy, the commissioner must have all of the powers provided in
chapter 550 or any other law that provides for execution against property in this state. The
sale of property levied upon and the time and manner of redemption is as provided in chapter
550. The seal of the court is not required. The levy may be made whether or not the
commissioner has commenced a legal action for collection.
new text end

new text begin (f) Where any assessment has been made by the commissioner, the property seized for
collection of the total amount due must not be sold until any determination of liability has
become final. No sale may be made unless a portion of the amount due remains unpaid for
a period of more than 30 calendar days after the determination of liability becomes final.
Seized property may be sold at any time if:
new text end

new text begin (1) the delinquent person consents in writing to the sale; or
new text end

new text begin (2) the commissioner determines that the property is perishable or may become greatly
reduced in price or value by keeping, or that the property cannot be kept without great
expense.
new text end

new text begin (g) Where a levy has been made to collect the amount due and the property seized is
properly included in a formal proceeding commenced under sections 524.3-401 to 524.3-505
and maintained under full supervision of the court, the property may not be sold until the
probate proceedings are completed or until the court orders.
new text end

new text begin (h) The property seized must be returned if the owner:
new text end

new text begin (1) gives a surety bond equal to the appraised value of the owner's interest in the property,
as determined by the commissioner; or
new text end

new text begin (2) deposits with the commissioner security in a form and amount the commissioner
considers necessary to insure payment of the liability.
new text end

new text begin (i) If a levy or sale would irreparably injure rights in property that the court determines
superior to rights of the state, the court may grant an injunction to prohibit the enforcement
of the levy or to prohibit the sale.
new text end

new text begin (j) Any person who fails or refuses to surrender without reasonable cause any property
or rights to property subject to levy is personally liable in an amount equal to the value of
the property or rights not so surrendered, but not exceeding the amount due.
new text end

new text begin (k) If the commissioner has seized the property of any individual, that individual may,
upon giving 48 hours notice to the commissioner and to the court, bring a claim for equitable
relief before the district court for the release of the property upon terms and conditions the
court considers equitable.
new text end

new text begin (l) Any person in control or possession of property or rights to property upon which a
levy has been made who surrenders the property or rights to property, or who pays the
amount due is discharged from any obligation or liability to the person liable for the amount
due with respect to the property or rights to property.
new text end

new text begin (m) The notice of any levy may be served personally or by mail.
new text end

new text begin (n) The commissioner may release the levy upon all or part of the property or rights to
property levied upon if the commissioner determines that the release will facilitate the
collection of the liability, but the release does not prevent any subsequent levy. If the
commissioner determines that property has been wrongfully levied upon, the commissioner
must return:
new text end

new text begin (1) the specific property levied upon, at any time; or
new text end

new text begin (2) an amount of money equal to the amount of money levied upon, at any time before
the expiration of nine months from the date of levy.
new text end

new text begin (o) Regardless of section 52.12, a levy upon a person's funds on deposit in a financial
institution located in this state, has priority over any unexercised right of setoff of the
financial institution to apply the levied funds toward the balance of an outstanding loan or
loans owed by the person to the financial institution. A claim by the financial institution
that it exercised its right to setoff before the levy must be substantiated by evidence of the
date of the setoff, and verified by an affidavit from a corporate officer of the financial
institution. For purposes of determining the priority of any levy under this subdivision, the
levy is treated as if it were an execution under chapter 550.
new text end

new text begin Subd. 3. new text end

new text begin Right of setoff. new text end

new text begin (a) Upon certification by the commissioner to the commissioner
of management and budget, or to any state agency that disburses its own funds, that a person,
applicant, or employer has a liability under this chapter, and that the state has purchased
personal services, supplies, contract services, or property from that person, the commissioner
of management and budget or the state agency must set off and pay to the commissioner an
amount sufficient to satisfy the unpaid liability from funds appropriated for payment of the
obligation of the state otherwise due the person. No amount may be set off from any funds
exempt under section 550.37 or funds due an individual who receives assistance under
chapter 256.
new text end

new text begin (b) All funds, whether general or dedicated, are subject to setoff.
new text end

new text begin (c) Regardless of any law to the contrary, the commissioner has first priority to setoff
from any funds otherwise due from the department to a delinquent person.
new text end

new text begin Subd. 4. new text end

new text begin Collection by civil action. new text end

new text begin (a) Any amount due under this chapter, from an
applicant or employer, may be collected by civil action in the name of the state of Minnesota.
Civil actions brought under this subdivision must be heard as provided under section 16D.14.
In any action, judgment must be entered in default for the relief demanded in the complaint
without proof, together with costs and disbursements, upon the filing of an affidavit of
default.
new text end

new text begin (b) Any person that is not a resident of this state and any resident person removed from
this state, is considered to appoint the secretary of state as its agent for the acceptance of
process in any civil action. The commissioner must file process with the secretary of state,
together with a payment of a fee of $15 and that service is considered sufficient service and
has the same force and validity as if served personally within this state. Notice of the service
of process, together with a copy of the process, must be sent by certified mail to the person's
last known address. An affidavit of compliance with this subdivision, and a copy of the
notice of service must be appended to the original of the process and filed in the court.
new text end

new text begin (c) No court filing fees, docketing fees, or release of judgment fees may be assessed
against the state for actions under this subdivision.
new text end

new text begin Subd. 5. new text end

new text begin Injunction forbidden. new text end

new text begin No injunction or other legal action to prevent the
determination, assessment, or collection of any amounts due under this chapter, from an
applicant or employer, are allowed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 35.

new text begin [268B.24] CONCILIATION SERVICES.
new text end

new text begin The Department of Labor and Industry may offer conciliation services to employers and
employees to resolve disputes concerning alleged violations of employment protections
identified in section 268B.09.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 36.

new text begin [268B.25] ANNUAL REPORTS.
new text end

new text begin (a) Beginning on or before July 1, 2026, the commissioner must annually report to the
Department of Management and Budget and the house of representatives and senate
committee chairs with jurisdiction over this chapter on program administrative expenditures
and revenue collection for the prior fiscal year, including but not limited to:
new text end

new text begin (1) total revenue raised through premium collection;
new text end

new text begin (2) the number of self-employed individuals or independent contractors electing coverage
under section 268B.11 and amount of associated revenue;
new text end

new text begin (3) the number of covered business entities paying premiums under this chapter and
associated revenue;
new text end

new text begin (4) administrative expenditures including transfers to other state agencies expended in
the administration of the chapter;
new text end

new text begin (5) summary of contracted services expended in the administration of this chapter;
new text end

new text begin (6) grant amounts and recipients under sections 268B.18 and 268B.29;
new text end

new text begin (7) an accounting of required outreach expenditures;
new text end

new text begin (8) summary of private plan approvals including the number of employers and employees
covered under private plans; and
new text end

new text begin (9) adequacy and use of the private plan approval and oversight fee.
new text end

new text begin (b) Beginning on or before July 1, 2026, the commissioner must annually publish a
publicly available report providing the following information for the previous fiscal year:
new text end

new text begin (1) total eligible claims;
new text end

new text begin (2) the number and percentage of claims attributable to each category of benefit;
new text end

new text begin (3) claimant demographics by age, gender, average weekly wage, occupation, and the
type of leave taken;
new text end

new text begin (4) the percentage of claims denied and the reasons therefor, including but not limited
to insufficient information and ineligibility and the reason therefor;
new text end

new text begin (5) average weekly benefit amount paid for all claims and by category of benefit;
new text end

new text begin (6) changes in the benefits paid compared to previous fiscal years;
new text end

new text begin (7) processing times for initial claims processing, initial determinations, and final
decisions;
new text end

new text begin (8) average duration for cases completed; and
new text end

new text begin (9) the number of cases remaining open at the close of such year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 37.

new text begin [268B.26] NOTICE REQUIREMENTS.
new text end

new text begin (a) Each employer must post in a conspicuous place on each of its premises a workplace
notice prepared by the commissioner providing notice of benefits available under this chapter.
The required workplace notice must be in English and each language other than English
which is the primary language of five or more employees or independent contractors of that
workplace, if such notice is available from the department.
new text end

new text begin (b) Each employer must issue to each employee not more than 30 days from the beginning
date of the employee's employment, or 30 days before premium collection begins, whichever
is later, the following written information provided by the department in the primary language
of the employee:
new text end

new text begin (1) an explanation of the availability of family and medical leave benefits provided under
this chapter, including rights to reinstatement and continuation of health insurance;
new text end

new text begin (2) the amount of premium deductions made by the employer under this chapter;
new text end

new text begin (3) the employer's premium amount and obligations under this chapter;
new text end

new text begin (4) the name and mailing address of the employer;
new text end

new text begin (5) the identification number assigned to the employer by the department;
new text end

new text begin (6) instructions on how to file a claim for family and medical leave benefits;
new text end

new text begin (7) the mailing address, e-mail address, and telephone number of the department; and
new text end

new text begin (8) any other information required by the department.
new text end

new text begin Delivery is made when an employee provides written acknowledgment of receipt of the
information, or signs a statement indicating the employee's refusal to sign such
acknowledgment.
new text end

new text begin (c) Each employer shall provide to each independent contractor with whom it contracts,
at the time such contract is made or, for existing contracts, within 30 days of the effective
date of this section, the following written information provided by the department in the
self-employed individual's primary language:
new text end

new text begin (1) the address and telephone number of the department;
new text end

new text begin (2) an explanation of the availability of family and medical leave benefits provided under
this chapter for independent contractors; and
new text end

new text begin (3) any other information required by the department.
new text end

new text begin (d) An employer that fails to comply with this subdivision may be issued, for a first
violation, a civil penalty of $50 per employee and per independent contractor with whom
it has contracted, and for each subsequent violation, a civil penalty of $300 per employee
or self-employed individual with whom it has contracted. The employer shall have the
burden of demonstrating compliance with this section.
new text end

new text begin (e) Employer notice to an employee under this section may be provided in paper or
electronic format. For notice provided in electronic format only, the employer must provide
employee access to an employer-owned computer during an employee's regular working
hours to review and print required notices.
new text end

new text begin (f) The department shall prepare a uniform employee notice form for employers to use
that provides the notice information required under this section. The commissioner shall
prepare the uniform employee notice in the five most common languages spoken in
Minnesota. Upon the written request of an employer who is subject to this section, the
commissioner shall provide a copy of the uniform employee notice in any primary language
spoken by an employee in the employer's place of business. If the commissioner does not
provide the copy of the uniform employee notice in response to a request under this
paragraph, the employer who makes the request is not subject to a penalty for failing to
provide the required notice under this section for violations that arise after the date of the
request. The commissioner shall pay for any costs associated with preparing the uniform
employee notice form or providing additional copies under this paragraph.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 38.

new text begin [268B.27] RELATIONSHIP TO OTHER LEAVE; CONSTRUCTION.
new text end

new text begin Subdivision 1. new text end

new text begin Concurrent leave. new text end

new text begin An employer may require leave taken under this
chapter to run concurrently with leave taken for the same purpose under section 181.941
or the Family and Medical Leave Act, United States Code, title 29, sections 2601 to 2654,
as amended.
new text end

new text begin Subd. 2. new text end

new text begin Construction. new text end

new text begin Nothing in this chapter shall be construed to:
new text end

new text begin (1) allow an employer to compel an employee to exhaust accumulated sick, vacation,
or personal time before or while taking leave under this chapter;
new text end

new text begin (2) prohibit an employer from providing additional benefits, including but not limited
to covering the portion of earnings not provided during periods of leave covered under this
chapter including through a supplemental benefit payment, as defined under section 268B.01,
subdivision 41;
new text end

new text begin (3) limit the parties to a collective bargaining agreement from bargaining and agreeing
with respect to leave benefits and related procedures and employee protections that meet
or exceed, and do not otherwise conflict with, the minimum standards and requirements in
this chapter;
new text end

new text begin (4) alter or amend the duty of parties to a collective bargaining agreement to meet and
negotiate or bargain collectively about the terms and conditions of employment, including
the amount or percentage of an employee charge back, pursuant to chapter 179A, and United
States Code, title 29, section 158(a)(5) and (b)(3). Nothing in this chapter requires parties
to a collective bargaining agreement to:
new text end

new text begin (i) renegotiate an existing collective bargaining agreement;
new text end

new text begin (ii) delay collective bargaining or negotiation about the amount or percentage of an
employee charge back until an existing collective bargaining agreement expires; or
new text end

new text begin (iii) bargain collectively or negotiate for a new employee charge back provision each
time annual premium rates are changed under this chapter; or
new text end

new text begin (5) applied so as to create any power or duty in conflict with federal law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 39.

new text begin [268B.28] SEVERABLE.
new text end

new text begin If the United States Department of Labor or a court of competent jurisdiction determines
that any provision of the family and medical benefit insurance program under this chapter
is not in conformity with, or is inconsistent with, the requirements of federal law, the
provision has no force or effect. If only a portion of the provision, or the application to any
person or circumstances, is determined not in conformity, or determined inconsistent, the
remainder of the provision and the application of the provision to other persons or
circumstances are not affected.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 40.

new text begin [268B.29] SMALL BUSINESS ASSISTANCE GRANTS.
new text end

new text begin (a) Employers with 50 or fewer employees may apply to the department for grants under
this section.
new text end

new text begin (b) The commissioner may approve a grant of up to $3,000 if the employer hires a
temporary worker to replace an employee on family or medical leave for a period of seven
days or more.
new text end

new text begin (c) For an employee's family or medical leave, the commissioner may approve a grant
of up to $1,000 as reimbursement for significant additional wage-related costs due to the
employee's leave.
new text end

new text begin (d) To be eligible for consideration for a grant under this section, the employer must
provide the department written documentation showing the temporary worker hired or
significant wage-related costs incurred are due to an employee's use of leave under this
chapter.
new text end

new text begin (e) The grants under this section may be funded from the family and medical benefit
insurance account.
new text end

new text begin (f) For the purposes of this section, the commissioner shall average the number of
employees reported by an employer over the last four completed calendar quarters to
determine the size of the employer.
new text end

new text begin (g) An employer who has an approved private plan is not eligible to receive a grant under
this section.
new text end

new text begin (h) The commissioner may award grants under this section only up to a maximum of
$5,000,000 per calendar year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Except as provided in section 41, this section is effective July 1,
2025.
new text end

Sec. 41. new text begin APPLICATION.
new text end

new text begin Family and medical benefits under Minnesota Statutes, chapter 268B, may be applied
for and paid starting July 1, 2025.
new text end

ARTICLE 2

FAMILY AND MEDICAL LEAVE BENEFIT AS EARNINGS

Section 1.

Minnesota Statutes 2022, section 256J.561, is amended by adding a subdivision
to read:


new text begin Subd. 4. new text end

new text begin Parents receiving family and medical leave benefits. new text end

new text begin A parent who meets
the criteria under subdivision 2 and who receives benefits under chapter 268B is not required
to participate in employment services.
new text end

Sec. 2.

Minnesota Statutes 2022, section 256J.95, subdivision 3, is amended to read:


Subd. 3.

Eligibility for diversionary work program.

(a) Except for the categories of
family units listed in clauses (1) to deleted text begin (8)deleted text end new text begin (9)new text end , all family units who apply for cash benefits and
who meet MFIP eligibility as required in sections 256J.11 to 256J.15 are eligible and must
participate in the diversionary work program. Family units or individuals that are not eligible
for the diversionary work program include:

(1) child only cases;

(2) single-parent family units that include a child under 12 months of age. A parent is
eligible for this exception once in a parent's lifetime;

(3) family units with a minor parent without a high school diploma or its equivalent;

(4) family units with an 18- or 19-year-old caregiver without a high school diploma or
its equivalent who chooses to have an employment plan with an education option;

(5) family units with a caregiver who received DWP benefits within the 12 months prior
to the month the family applied for DWP, except as provided in paragraph (c);

(6) family units with a caregiver who received MFIP within the 12 months prior to the
month the family applied for DWP;

(7) family units with a caregiver who received 60 or more months of TANF assistance;
deleted text begin and
deleted text end

(8) family units with a caregiver who is disqualified from the work participation cash
benefit program, DWP, or MFIP due to frauddeleted text begin .deleted text end new text begin ; and
new text end

new text begin (9) single-parent family units where a parent is receiving family and medical leave
benefits under chapter 268B.
new text end

(b) A two-parent family must participate in DWP unless both caregivers meet the criteria
for an exception under paragraph (a), clauses (1) through (5), or the family unit includes a
parent who meets the criteria in paragraph (a), clause (6), (7), or (8).

(c) Once DWP eligibility is determined, the four months run consecutively. If a participant
leaves the program for any reason and reapplies during the four-month period, the county
must redetermine eligibility for DWP.

Sec. 3.

Minnesota Statutes 2022, section 256J.95, subdivision 11, is amended to read:


Subd. 11.

Universal participation required.

(a) All DWP caregivers, except caregivers
who meet the criteria in paragraph (d), are required to participate in DWP employment
services. Except as specified in paragraphs (b) and (c), employment plans under DWP must,
at a minimum, meet the requirements in section 256J.55, subdivision 1.

(b) A caregiver who is a member of a two-parent family that is required to participate
in DWP who would otherwise be ineligible for DWP under subdivision 3 may be allowed
to develop an employment plan under section 256J.521, subdivision 2, that may contain
alternate activities and reduced hours.

(c) A participant who is a victim of family violence shall be allowed to develop an
employment plan under section 256J.521, subdivision 3. A claim of family violence must
be documented by the applicant or participant by providing a sworn statement which is
supported by collateral documentation in section 256J.545, paragraph (b).

(d) One parent in a two-parent family unit deleted text begin that has a natural born child under 12 months
of age
deleted text end is not required to have an employment plan deleted text begin until the child reaches 12 months of age
unless the family unit has already used the exclusion under section 256J.561, subdivision
3
, or the previously allowed child under age one exemption under section 256J.56, paragraph
(a), clause (5).
deleted text end new text begin if that parent:
new text end

new text begin (1) receives family and medical leave benefits under chapter 268B; or
new text end

new text begin (2) has a natural born child under 12 months of age until the child reaches 12 months
of age unless the family unit has already used the exclusion under section 256J.561,
subdivision 3, or the previously allowed child under age one exemption under section
256J.56, paragraph (a), clause (5).
new text end

(e) The provision in paragraph (d) ends the first full month after the child reaches 12
months of age. This provision is allowable only once in a caregiver's lifetime. In a two-parent
household, only one parent shall be allowed to use this category.

(f) The participant and job counselor must meet in the month after the month the child
reaches 12 months of age to revise the participant's employment plan. The employment plan
for a family unit that has a child under 12 months of age that has already used the exclusion
in section 256J.561 must be tailored to recognize the caregiving needs of the parent.

Sec. 4.

Minnesota Statutes 2022, section 256P.01, subdivision 3, is amended to read:


Subd. 3.

Earned income.

"Earned income" means income earned through the receipt
of wages, salary, commissions, bonuses, tips, gratuities, profit from employment activities,
net profit from self-employment activities, payments made by an employer for regularly
accrued vacation or sick leave, severance pay based on accrued leave time, new text begin benefits paid
under chapter 268B,
new text end royalties, honoraria, or other profit from activity that results from the
client's work, effort, or labor for purposes other than student financial assistance,
rehabilitation programs, student training programs, or service programs such as AmeriCorps.
The income must be in return for, or as a result of, legal activity.

Sec. 5. new text begin EFFECTIVE DATES.
new text end

new text begin Sections 1 to 4 are effective July 1, 2025.
new text end

ARTICLE 3

FAMILY AND MEDICAL LEAVE ACTUARIAL STUDY

Section 1. new text begin ACTUARIAL STUDY REQUIREMENT.
new text end

new text begin (a) The commissioner of employment and economic development must contract with a
qualified independent actuarial consultant to conduct an actuarial study of the family and
medical leave premium rate, premium structure, weekly benefit formula, duration of benefit
weeks, fund reserve, and other components as necessary to determine the financial soundness
of the family and medical benefit insurance program created in this act. A qualified
independent actuarial consultant is one who is a Fellow of the Society of Actuaries, Member
of the American Academy of Actuaries (FSA MAAA), and who has experience directly
relevant to the analysis required under this paragraph. The commissioner must issue a request
for proposal to satisfy the requirements of this section no later than 30 days following
enactment.
new text end

new text begin (b) A copy of the actuarial study must be provided to the majority and minority leaders
in the senate and house of representatives no later than October 31, 2023.
new text end

ARTICLE 4

APPROPRIATIONS

Section 1. new text begin APPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the family and
medical benefit insurance account under Minnesota Statutes, section 268B.02, subdivision
4, and are available for the fiscal years indicated for each purpose. The figures "2024" and
"2025" used in this article mean that the appropriations listed under them are available for
the fiscal year ending June 30, 2024, or June 30, 2025, respectively. "The first year" is fiscal
year 2024. "The second year" is fiscal year 2025. "The biennium" is fiscal years 2024 and
2025.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2024
new text end
new text begin 2025
new text end

Sec. 2. new text begin DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
new text end

new text begin $
new text end
new text begin 50,938,000
new text end
new text begin $
new text end
new text begin 71,357,000
new text end

new text begin This amount is for the purposes of Minnesota
Statutes, chapter 268B, including start-up and
information technology costs, administration,
and outreach.
new text end

new text begin The base from the family and medical benefit
insurance account for fiscal year 2026 is
$76,088,000 and for fiscal year 2027 is
$73,641,000.
new text end

Sec. 3. new text begin DEPARTMENT OF LABOR AND
INDUSTRY
new text end

new text begin $
new text end
new text begin 601,000
new text end
new text begin $
new text end
new text begin 374,000
new text end

new text begin This amount is for the purposes of Minnesota
Statutes, chapter 268B.
new text end

new text begin The base from the family and medical benefit
insurance account for fiscal year 2026 and
beyond is $731,000.
new text end

Sec. 4. new text begin DEPARTMENT OF COMMERCE
new text end

new text begin $
new text end
new text begin 376,000
new text end
new text begin $
new text end
new text begin 316,000
new text end

new text begin This amount is for the purposes of Minnesota
Statutes, chapter 268B.
new text end

new text begin The base from the family and medical benefit
insurance account for fiscal year 2026 and
beyond is $128,000.
new text end

Sec. 5. new text begin MINNESOTA MANAGEMENT AND
BUDGET
new text end

new text begin $
new text end
new text begin -0-
new text end
new text begin $
new text end
new text begin 118,000
new text end

new text begin This amount is for the purposes of Minnesota
Statutes, chapter 268B.
new text end

new text begin The base from the family and medical benefit
insurance account for fiscal year 2026 and
beyond is $79,000.
new text end

Sec. 6. new text begin DEPARTMENT OF HUMAN
SERVICES
new text end

new text begin $
new text end
new text begin 2,649,000
new text end
new text begin $
new text end
new text begin -0-
new text end

new text begin This amount is for the purposes of Minnesota
Statutes, chapter 268B.
new text end

new text begin The base from the family and medical benefit
insurance account for fiscal year 2026 and
beyond is $530,000.
new text end

Sec. 7. new text begin SECRETARY OF STATE
new text end

new text begin $
new text end
new text begin 384,000
new text end
new text begin $
new text end
new text begin 4,000
new text end

new text begin This amount is for the purposes of Minnesota
Statutes, chapter 268B.
new text end

new text begin The base from the family and medical benefit
insurance account for fiscal year 2026 and
beyond is $77,000.
new text end

Sec. 8. new text begin SUPREME COURT; APPROPRIATIONS.
new text end

new text begin $15,000 in fiscal year 2024 and $15,000 in fiscal year 2025 are appropriated from the
family and medical benefit insurance account to the supreme court for the purposes of
Minnesota Statutes, chapter 268B. This is a onetime appropriation.
new text end

Sec. 9. new text begin LEGISLATURE; APPROPRIATION.
new text end

new text begin $18,000 in fiscal year 2024 is appropriated from the family and medical benefit insurance
account to the house of representatives for the purposes of Minnesota Statutes, chapter
268B. This is a onetime appropriation.
new text end

Sec. 10. new text begin UNIVERSITY OF MINNESOTA; APPROPRIATION.
new text end

new text begin $1,372,000 in fiscal year 2025 is appropriated from the family and medical benefit
insurance account to the Board of Regents of the University of Minnesota for the purposes
of Minnesota Statutes, chapter 268B. This is a onetime appropriation.
new text end

Sec. 11. new text begin TRANSFER.
new text end

new text begin The commissioner of management and budget shall transfer $668,321,000 in fiscal year
2024 from the general fund to the family and medical benefit insurance account for the
purposes of Minnesota Statutes, chapter 268B.
new text end

Sec. 12. new text begin ENTERPRISE COSTS BASE ESTABLISHMENT.
new text end

new text begin A general fund base of $3,049,000 in fiscal year 2026 and $3,049,000 in fiscal year 2027
are established to fund enterprise requirements under Minnesota Statutes, chapter 268B,
employee notification, and the costs incurred by state agencies due to employer-paid
premiums established under Minnesota Statutes, chapter 268B. The commissioner of
management and budget shall allocate these amounts to agency base budgets based on the
expected costs incurred by those agencies.
new text end