1.1 A bill for an act
1.2 relating to employment; modifying the Minnesota Paid Leave Law; amending
1.3 Minnesota Statutes 2024, sections 268B.01, subdivisions 15, 23, 35; 268B.02, by
1.4 adding a subdivision; 268B.04, subdivisions 3, 5; 268B.06, subdivision 9; 268B.14,
1.5 subdivision 5a.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2024, section 268B.01, subdivision 15, is amended to read:
1.8 Subd. 15.Covered employment.(a) "Covered employment" means performing services
1.9of whatever nature, unlimited by the relationship of master and servant as known to the
1.10common law, or any other legal relationship performed for wages or under any contract
1.11calling for the performance of services, written or oral, express or implied.
1.12 (b) For the purposes of this chapter, covered employment means an employee's entire
1.13employment during a calendar year if:
1.14 (1) 50 percent or more of the employment during the calendar year is performed in
1.15Minnesota; or
1.16 (2) 50 percent or more of the employment during the calendar year is not performed in
1.17Minnesota or any other single state within the United States, or United States territory or
1.18foreign nation, but some of the employment is performed in Minnesota and the employee's
1.19residence is in Minnesota during 50 percent or more of the calendar year.
1.20 (c) "Covered employment" does not include:
1.21 (1) a self-employed individual;
1.22 (2) an independent contractor; or
1Section 1.
REVISOR SS/BM 25-0426102/25/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 1976
NINETY-FOURTH SESSION
Authored by Baker, Mekeland, Zeleznikar, Schultz, Mueller and others03/06/2025
The bill was read for the first time and referred to the Committee on Workforce, Labor, and Economic Development Finance and Policy 2.1 (3) employment by a seasonal employee, as defined in subdivision 35.; or
2.2 (4) an individual covered by a collective bargaining agreement as of January 1, 2026,
2.3until a successor collective bargaining agreement (i) becomes effective, and (ii) specifically
2.4directs that all individuals covered by the agreement are in covered employment under this
2.5section.
2.6 (d) Entities that are excluded under this section may opt in to coverage following a
2.7procedure determined by the commissioner. In such cases, services provided by employees
2.8are considered covered employment under subdivision 15.
2.9 (e) The commissioner may adopt rules in accordance with chapter 14 to:
2.10 (1) further define the application of this subdivision; and
2.11 (2) establish the criteria for covered employment for individuals that do not meet the
2.12criteria in paragraphs (a) and (b), but that perform services as an employee to a Minnesota
2.13employer.
2.14 Sec. 2. Minnesota Statutes 2024, section 268B.01, subdivision 23, is amended to read:
2.15 Subd. 23.Family member.(a) "Family member" means, with respect to an applicant:
2.16 (1) a spouse or domestic partner;
2.17 (2) a child, including a biological child, adopted child, foster child, stepchild, child of
2.18a domestic partner, or child to whom the applicant stands in loco parentis, is a legal guardian,
2.19or is a de facto custodian;
2.20 (3) a parent or legal guardian of the applicant;
2.21 (4) a sibling;
2.22 (5) a grandchild;
2.23 (6) a grandparent or spouse's grandparent; and
2.24 (7) a son-in-law or daughter-in-law; and.
2.25 (8) an individual who has a personal relationship with the applicant that creates an
2.26expectation and reliance that the applicant care for the individual without compensation,
2.27whether or not the applicant and the individual reside together.
2.28 (b) For the purposes of this chapter, "grandchild" means a child of the applicant's child.
2.29 (c) For the purposes of this chapter, "grandparent" means a parent of the applicant's
2.30parent.
2Sec. 2.
REVISOR SS/BM 25-0426102/25/25 3.1 (d) For the purposes of this chapter, "parent" means the biological, adoptive, de facto
3.2custodian, or foster parent, stepparent, or legal guardian of an applicant or the applicant's
3.3spouse, or an individual who stood in loco parentis to an applicant when the applicant was
3.4a child.
3.5 Sec. 3. Minnesota Statutes 2024, section 268B.01, subdivision 35, is amended to read:
3.6 Subd. 35.Seasonal employee.(a) A seasonal employee is an individual who is employed
3.7for no more than 150 180 days during any consecutive 52-week period in hospitality by an
3.8employer whose average receipts during any six months of the preceding calendar year
3.9were not more than 33 percent of its average receipts for the other six months of such year.
3.10 (b) For the purposes of this section, "hospitality" has the meaning given under the
3.11collective definitions in section 157.15, subdivisions 4 to 9 and 11 to 14.
3.12 (c) For an individual to be classified as a seasonal employee, an employer must apply
3.13to the department in a format and manner prescribed by the commissioner and certify that:
3.14 (1) the employee meets or will meet the 150-day 180-day maximum employment duration
3.15under this subdivision;
3.16 (2) the employee's primary line of work is hospitality;
3.17 (3) the employer meets the receipts threshold under this subdivision; and
3.18 (4) the employer has provided the required employee notice required under section
3.19268B.26.
3.20 (d) An employer must notify the department, in a format and manner prescribed by the
3.21commissioner, within five business days if a previously classified seasonal employee no
3.22longer meets the criteria above and is no longer a seasonal employee.
3.23 Sec. 4. Minnesota Statutes 2024, section 268B.02, is amended by adding a subdivision to
3.24read:
3.25 Subd. 7.Private administration.The commissioner may contract with a private company
3.26to fulfill the following duties assigned to the commissioner:
3.27 (1) processing benefit applications, determining eligibility for benefits, and calculating
3.28benefit amounts under sections 268B.04 to 268B.07;
3.29 (2) making payments to applicants under section 268B.03;
3Sec. 4.
REVISOR SS/BM 25-0426102/25/25 4.1 (3) handling elections of coverage from self-employed individuals and independent
4.2contractors under section 268B.11; and
4.3 (4) withholding tax and child support from benefits under sections 268B.145 and
4.4268B.155.
4.5 Sec. 5. Minnesota Statutes 2024, section 268B.04, subdivision 3, is amended to read:
4.6 Subd. 3.Weekly benefit amount; maximum amount of benefits available; prorated
4.7amount.(a) Subject to the maximum weekly benefit amount, an applicant's weekly benefit
4.8is calculated by adding the amounts obtained by applying the following percentage to 67
4.9percent of an applicant's average weekly wage during the high quarter of the base period:.
4.10 (1) 90 percent of wages that do not exceed 50 percent of the state's average weekly wage;
4.11plus
4.12 (2) 66 percent of wages that exceed 50 percent of the state's average weekly wage but
4.13not 100 percent; plus
4.14 (3) 55 percent of wages that exceed 100 percent of the state's average weekly wage.
4.15 (b) For applicants that have changed employers within the base period, the weekly benefit
4.16amount is calculated based on the highest quarter of wages in the base period.
4.17 (c) The state's average weekly wage is the average wage as calculated under section
4.18268.035, subdivision 23, at the time a benefit amount is first determined.
4.19 (d) The maximum weekly benefit amount is the state's average weekly wage as calculated
4.20under section 268.035, subdivision 23.
4.21 (e) The state's maximum weekly benefit amount, computed in accordance with section
4.22268.035, subdivision 23, applies to leaves established effective on or after the last Sunday
4.23in October. Once established, an applicant's weekly benefit amount is not affected by the
4.24last Sunday in October change in the state's maximum weekly benefit amount.
4.25 (f) For a covered individual receiving family or medical leave, a weekly benefit amount
4.26is prorated when:
4.27 (1) the covered individual works hours for wages;
4.28 (2) the covered individual uses paid sick leave, paid vacation leave, or other paid time
4.29off that is not considered a supplemental benefit payment as defined in section 268B.01,
4.30subdivision 41; or
4.31 (3) leave is taken intermittently.
4Sec. 5.
REVISOR SS/BM 25-0426102/25/25 5.1 EFFECTIVE DATE.This section is effective November 1, 2025.
5.2 Sec. 6. Minnesota Statutes 2024, section 268B.04, subdivision 5, is amended to read:
5.3 Subd. 5.Maximum length of benefits.(a) The total number of weeks that an applicant
5.4may take benefits in a single benefit year for a serious health condition is the lesser of 12
5.5weeks, or 12 weeks minus the number of weeks within the same benefit year that the
5.6applicant received benefits for bonding, safety leave, family care, and qualifying exigency
5.7plus eight weeks. any reason is:
5.8 (1) for employees of an employer with more than 50 employees, 12 weeks; and
5.9 (2) for employees of an employer with 50 employees or fewer, six weeks.
5.10 (b) The total number of weeks that an applicant may take benefits in a single benefit
5.11year for bonding, safety leave, family care, and qualifying exigency is the lesser of 12 weeks,
5.12or 12 weeks minus the number of weeks within the same benefit year that the applicant
5.13received benefits for a serious health condition plus eight weeks.
5.14 EFFECTIVE DATE.This section is effective November 1, 2025.
5.15 Sec. 7. Minnesota Statutes 2024, section 268B.06, subdivision 9, is amended to read:
5.16 Subd. 9.Seasonal employment denial.(a) An applicant is not eligible to receive benefits
5.17or take protected leave under the provisions of this chapter for any week the applicant is a
5.18seasonal employee as defined in section 268B.01, subdivision 35.
5.19 (b) If benefits are denied to any applicant under paragraph (a) who remains employed
5.20more than 150 180 days, the applicant is only entitled to benefits beginning the Sunday
5.21following the completion of the 150-day 180-day period.
5.22 EFFECTIVE DATE.This section is effective November 1, 2025.
5.23 Sec. 8. Minnesota Statutes 2024, section 268B.14, subdivision 5a, is amended to read:
5.24 Subd. 5a.Small employer premium rate.(a) Small employers are eligible for the
5.25premium rates provided by this subdivision if the employer:
5.26 (1) has 30 50 or fewer employees pursuant to subdivision 5b; and
5.27 (2) the average wage for that employer as calculated in subdivision 5c is less than or
5.28equal to 150 percent of the state's average wage in covered employment for the basis period.
5.29 (b) The premium rate for small employers eligible under this subdivision is 75 percent
5.30of the annual premium rate calculated in subdivisions 6 and 7, as follows:
5Sec. 8.
REVISOR SS/BM 25-0426102/25/25 6.1 (1) employers must pay a minimum of 25 50 percent of the rate calculated in subdivisions
6.26 and 7. Employers shall not deduct from any employees' pay to fund the employer portion
6.3of the premium; and
6.4 (2) employees must pay the remaining portion due under this subdivision, if any, of the
6.5premium not paid by the employer. The employer must make wage deductions as necessary
6.6under this subdivision to fund the employee portion of the premium.
6.7 EFFECTIVE DATE.This section is effective January 1, 2026.
6Sec. 8.
REVISOR SS/BM 25-0426102/25/25