HF 2024

as introduced - 94th Legislature (2025 - 2026) Posted on 03/10/2025 02:44pm

A bill for an act
relating to economic development; modifying the paid leave program; amending
Minnesota Statutes 2024, sections 268B.01, subdivisions 17, 18, 35, by adding a
subdivision; 268B.10, subdivisions 2, 3; 268B.14, subdivision 7; Laws 2023,
chapter 59, article 1, section 42.

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

Section 1.

Minnesota Statutes 2024, section 268B.01, subdivision 17, is amended to read:

Subd. 17.

Employee.

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

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

(c) Employee does not include seasonal employees as defined in subdivision 35.

new text begin (d) Employee does not include an employee of a small employer.
new text end

Sec. 2.

Minnesota Statutes 2024, section 268B.01, subdivision 18, is amended to read:

Subd. 18.

Employer.

(a) "Employer" means:

(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;

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

(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, board or commission, 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; and

(4) the taxpaying employer as described in section 268.046, subdivision 1.

(b) Employer does not include:

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

(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 deleted text begin . deleted text end new text begin ;
or
new text end

new text begin (3) a small employer as defined in subdivision 39a.
new text end

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 150 days during any consecutive 52-week period deleted text begin in hospitality deleted text end deleted text begin 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 deleted text end .

deleted text begin (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.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end 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 150-day maximum employment duration under
this subdivision; new text begin and
new text end

deleted text begin (2) the employee's primary line of work is hospitality;
deleted text end

deleted text begin (3) the employer meets the receipts threshold under this subdivision; and
deleted text end

deleted text begin (4) deleted text end new text begin (2) new text end the employer has provided the required employee notice required under section
268B.26.

deleted text begin (d) deleted text end new text begin (c) new text end 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.01, is amended by adding a subdivision to
read:

new text begin Subd. 39a. new text end

new text begin Small employer. new text end

new text begin "Small employer" means an employer with 15 or fewer
employees.
new text end

Sec. 5.

Minnesota Statutes 2024, section 268B.10, subdivision 2, is amended to read:

Subd. 2.

Private plan requirements; medical benefit program.

new text begin (a) new text end 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:

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

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

(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;

(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;

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

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

(7) the private plan will provide benefits and leave for any serious health condition or
medical care related to pregnancy for which benefits are payable, and leave provided, under
this chapter;

(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;

(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;

(10) coverage will continue under the private plan while an employee remains employed
by the employer. For former employees, coverage for the purposes of benefits applies until
the individual is hired by a new employer or 26 weeks pass, whichever occurs first; and

(11) if an application for leave is filed by a former employee to a private plan, the plan
pays benefits for the totality of the leave. Private plans may not cut off eligibility for a
former employee during the course of an approved leave.

new text begin (b) Notwithstanding paragraph (a), a private plan may provide shorter durations of leave
and benefit eligibility if the total dollar value of wage replacement benefits under the private
plan for an employee for any particular qualifying event meets or exceeds what the total
dollar value would be under the public family and medical benefit program.
new text end

Sec. 6.

Minnesota Statutes 2024, section 268B.10, subdivision 3, is amended to read:

Subd. 3.

Private plan requirements; family benefit program.

new text begin (a) new text end 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:

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

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

(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;

(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;

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

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

(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;

(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;

(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;

(10) coverage will continue under the private plan while an employee remains employed
by the employer. For former employees, coverage for the purposes of benefits applies until
the individual is hired by a new employer or 26 weeks pass, whichever occurs first; and

(11) if an application for leave is filed by a former employee to a private plan, the private
plan is required to pay benefits for the totality of the leave. Private plans must not discontinue
eligibility for a former employee during the course of an approved leave.

new text begin (b) Notwithstanding paragraph (a), a private plan may provide shorter durations of leave
and benefit eligibility if the total dollar value of wage replacement benefits under the private
plan for an employee for any particular qualifying event meets or exceeds what the total
dollar value would be under the public family and medical benefit program.
new text end

Sec. 7.

Minnesota Statutes 2024, section 268B.14, subdivision 7, is amended to read:

Subd. 7.

Premium rate adjustments.

The commissioner may adjust the annual premium
rates pursuant to this section prior to January 1, 2026. By July 31, 2026, and then by July
31 of each year thereafter, the commissioner must adjust the annual premium rates for the
following calendar year based on program historical experience and sound actuarial principles
and so that the projected fund balance as a percentage of total program expenditure does
not fall below 25 percent. The commissioner shall contract with a qualified independent
actuarial consultant to conduct an actuarial study for this purpose no less than every year.
A copy of all actuarial studies, and any revisions or other documents received that relate to
an actuarial study, must be provided promptly to the chairs and ranking minority members
of the legislative committees with jurisdiction over this chapter. All actuarial studies, and
any revisions or other documents received that relate to an actuarial study, must also be
filed with the Legislative Reference Library in compliance with section 3.195. A qualified
independent actuarial consultant is one who is a Fellow of the Society of Actuaries (FSA)
and a Member of the American Academy of Actuaries (MAAA) and who has experience
directly relevant to the analysis required. In no year shall the annual premium rate exceed
deleted text begin 1.2 deleted text end new text begin one new text end percent of taxable wages paid to each employee.

Sec. 8.

Laws 2023, chapter 59, article 1, section 42, is amended to read:

Sec. 42. APPLICATION.

Family and medical benefits under Minnesota Statutes, chapter 268B, may be paid for
starting January 1, deleted text begin 2026 deleted text end new text begin 2027 new text end .

Sec. 9. new text begin CONFORMING EFFECTIVE DATES.
new text end

new text begin Notwithstanding any other law to the contrary, the effective dates in Laws 2023, chapter
59, as amended by Laws 2024, chapter 127, article 73, are extended as necessary to conform
with the amendments in section 8.
new text end