HF 1976

as introduced - 94th Legislature (2025 - 2026) Posted on 03/06/2025 02:41pm

A bill for an act
relating to employment; modifying the Minnesota Paid Leave Law; amending
Minnesota Statutes 2024, sections 268B.01, subdivisions 15, 23, 35; 268B.02, by
adding a subdivision; 268B.04, subdivisions 3, 5; 268B.06, subdivision 9; 268B.14,
subdivision 5a.

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

Section 1.

Minnesota Statutes 2024, section 268B.01, subdivision 15, is amended to read:

Subd. 15.

Covered employment.

(a) "Covered employment" means performing services
of whatever nature, unlimited by the relationship of master and servant as known to the
common law, or any other legal relationship performed for wages or under any contract
calling for the performance of services, written or oral, express or implied.

(b) For the purposes of this chapter, covered employment means an employee's entire
employment during a calendar year if:

(1) 50 percent or more of the employment during the calendar year is performed in
Minnesota; or

(2) 50 percent or more of the employment during the calendar year is not performed in
Minnesota or any other single state within the United States, or United States territory or
foreign nation, but some of the employment is performed in Minnesota and the employee's
residence is in Minnesota during 50 percent or more of the calendar year.

(c) "Covered employment" does not include:

(1) a self-employed individual;

(2) an independent contractor; deleted text begin or
deleted text end

(3) employment by a seasonal employee, as defined in subdivision 35 deleted text begin . deleted text end new text begin ; or
new text end

new text begin (4) an individual covered by a collective bargaining agreement as of January 1, 2026,
until a successor collective bargaining agreement (i) becomes effective, and (ii) specifically
directs that all individuals covered by the agreement are in covered employment under this
section.
new text end

(d) Entities that are excluded under this section may opt in to coverage following a
procedure determined by the commissioner. In such cases, services provided by employees
are considered covered employment under subdivision 15.

(e) The commissioner may adopt rules in accordance with chapter 14 to:

(1) further define the application of this subdivision; and

(2) establish the criteria for covered employment for individuals that do not meet the
criteria in paragraphs (a) and (b), but that perform services as an employee to a Minnesota
employer.

Sec. 2.

Minnesota Statutes 2024, section 268B.01, subdivision 23, is amended to read:

Subd. 23.

Family member.

(a) "Family member" means, with respect to an applicant:

(1) a spouse or domestic partner;

(2) a child, including a biological child, adopted child, foster child, stepchild, child of
a domestic partner, or child to whom the applicant stands in loco parentis, is a legal guardian,
or is a de facto custodian;

(3) a parent or legal guardian of the applicant;

(4) a sibling;

(5) a grandchild;

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

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

deleted text begin (8) an individual who has a personal relationship with the applicant that creates an
expectation and reliance that the applicant care for the individual without compensation,
whether or not the applicant and the individual reside together.
deleted text end

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

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

(d) For the purposes of this chapter, "parent" means the biological, adoptive, de facto
custodian, 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.

Sec. 3.

Minnesota Statutes 2024, section 268B.01, subdivision 35, is amended to read:

Subd. 35.

Seasonal employee.

(a) A seasonal employee is an individual who is employed
for no more than deleted text begin 150 deleted text end new text begin 180 new text end days during any consecutive 52-week period in hospitality by an
employer whose average receipts during any six months of the preceding calendar year
were not more than 33 percent of its average receipts for the other six months of such year.

(b) For the purposes of this section, "hospitality" has the meaning given under the
collective definitions in section 157.15, subdivisions 4 to 9 and 11 to 14.

(c) For an individual to be classified as a seasonal employee, an employer must apply
to the department in a format and manner prescribed by the commissioner and certify that:

(1) the employee meets or will meet the deleted text begin 150-day deleted text end new text begin 180-day new text end maximum employment duration
under this subdivision;

(2) the employee's primary line of work is hospitality;

(3) the employer meets the receipts threshold under this subdivision; and

(4) the employer has provided the required employee notice required under section
268B.26.

(d) An employer must notify the department, in a format and manner prescribed by the
commissioner, within five business days if a previously classified seasonal employee no
longer meets the criteria above and is no longer a seasonal employee.

Sec. 4.

Minnesota Statutes 2024, section 268B.02, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Private administration. new text end

new text begin The commissioner may contract with a private company
to fulfill the following duties assigned to the commissioner:
new text end

new text begin (1) processing benefit applications, determining eligibility for benefits, and calculating
benefit amounts under sections 268B.04 to 268B.07;
new text end

new text begin (2) making payments to applicants under section 268B.03;
new text end

new text begin (3) handling elections of coverage from self-employed individuals and independent
contractors under section 268B.11; and
new text end

new text begin (4) withholding tax and child support from benefits under sections 268B.145 and
268B.155.
new text end

Sec. 5.

Minnesota Statutes 2024, section 268B.04, subdivision 3, is amended to read:

Subd. 3.

Weekly benefit amount; maximum amount of benefits available; prorated
amount.

(a) Subject to the maximum weekly benefit amount, an applicant's weekly benefit
is deleted text begin calculated by adding the amounts obtained by applying the following percentage to deleted text end new text begin 67
percent of new text end an applicant's average weekly wage during the high quarter of the base period deleted text begin : deleted text end new text begin .
new text end

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

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

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

(b) For applicants that have changed employers within the base period, the weekly benefit
amount is calculated based on the highest quarter of wages in the base period.

(c) 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.

(d) The maximum weekly benefit amount is the state's average weekly wage as calculated
under section 268.035, subdivision 23.

(e) The state's maximum weekly benefit amount, computed in accordance with section
268.035, subdivision 23, applies to leaves 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.

(f) For a covered individual receiving family or medical leave, a weekly benefit amount
is prorated when:

(1) the covered individual works hours for wages;

(2) the covered individual 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; or

(3) leave is taken intermittently.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective November 1, 2025.
new text end

Sec. 6.

Minnesota Statutes 2024, section 268B.04, subdivision 5, is amended to read:

Subd. 5.

Maximum length of benefits.

deleted text begin (a) deleted text end The total number of weeks that an applicant
may take benefits in a single benefit year for deleted text begin a serious health condition is the lesser of 12
weeks, or 12 weeks minus the number of weeks within the same benefit year that the
applicant received benefits for bonding, safety leave, family care, and qualifying exigency
plus eight weeks. deleted text end new text begin any reason is:
new text end

new text begin (1) for employees of an employer with more than 50 employees, 12 weeks; and
new text end

new text begin (2) for employees of an employer with 50 employees or fewer, six weeks.
new text end

deleted text begin (b) The total number of weeks that an applicant may take benefits in a single benefit
year for bonding, safety leave, family care, and qualifying exigency is the lesser of 12 weeks,
or 12 weeks minus the number of weeks within the same benefit year that the applicant
received benefits for a serious health condition plus eight weeks.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective November 1, 2025.
new text end

Sec. 7.

Minnesota Statutes 2024, section 268B.06, subdivision 9, is amended to read:

Subd. 9.

Seasonal employment denial.

(a) An applicant is not eligible to receive benefits
or take protected leave under the provisions of this chapter for any week the applicant is a
seasonal employee as defined in section 268B.01, subdivision 35.

(b) If benefits are denied to any applicant under paragraph (a) who remains employed
more than deleted text begin 150 deleted text end new text begin 180 new text end days, the applicant is only entitled to benefits beginning the Sunday
following the completion of the deleted text begin 150-day deleted text end new text begin 180-day new text end period.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective November 1, 2025.
new text end

Sec. 8.

Minnesota Statutes 2024, section 268B.14, subdivision 5a, is amended to read:

Subd. 5a.

Small employer premium rate.

(a) Small employers are eligible for the
premium rates provided by this subdivision if the employer:

(1) has deleted text begin 30 deleted text end new text begin 50 new text end or fewer employees pursuant to subdivision 5b; and

(2) the average wage for that employer as calculated in subdivision 5c is less than or
equal to 150 percent of the state's average wage in covered employment for the basis period.

(b) The premium rate for small employers eligible under this subdivision is 75 percent
of the annual premium rate calculated in subdivisions 6 and 7, as follows:

(1) employers must pay a minimum of deleted text begin 25 deleted text end new text begin 50 new text end percent of the rate calculated in subdivisions
6 and 7. Employers shall not deduct from any employees' pay to fund the employer portion
of the premium; and

(2) employees must pay the remaining portion due under this subdivision, if any, of the
premium not paid by the employer. The employer must make wage deductions as necessary
under this subdivision to fund the employee portion of the premium.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end