Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2466 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to employment; modifying the Minnesota Paid Leave Law; amending
3	3	1.3 Minnesota Statutes 2024, sections 268B.01, subdivisions 15, 23, 35; 268B.02, by
4	4	1.4 adding a subdivision; 268B.04, subdivisions 3, 5; 268B.06, subdivision 9; 268B.14,
5	5	1.5 subdivision 5a.
6	6	1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7	1.7 Section 1. Minnesota Statutes 2024, section 268B.01, subdivision 15, is amended to read:
8	8	1.8 Subd. 15.Covered employment.(a) "Covered employment" means performing services
9	9	1.9of whatever nature, unlimited by the relationship of master and servant as known to the
10	10	1.10common law, or any other legal relationship performed for wages or under any contract
11	11	1.11calling for the performance of services, written or oral, express or implied.
12	12	1.12 (b) For the purposes of this chapter, covered employment means an employee's entire
13	13	1.13employment during a calendar year if:
14	14	1.14 (1) 50 percent or more of the employment during the calendar year is performed in
15	15	1.15Minnesota; or
16	16	1.16 (2) 50 percent or more of the employment during the calendar year is not performed in
17	17	1.17Minnesota or any other single state within the United States, or United States territory or
18	18	1.18foreign nation, but some of the employment is performed in Minnesota and the employee's
19	19	1.19residence is in Minnesota during 50 percent or more of the calendar year.
20	20	1.20 (c) "Covered employment" does not include:
21	21	1.21 (1) a self-employed individual;
22	22	1.22 (2) an independent contractor; or
23	23	1Section 1.
24	24	25-04261 as introduced02/25/25 REVISOR SS/BM
25	25	SENATE
26	26	STATE OF MINNESOTA
27	27	S.F. No. 2466NINETY-FOURTH SESSION
28	28	(SENATE AUTHORS: PRATT, Coleman, Draheim, Housley and Nelson)
29	29	OFFICIAL STATUSD-PGDATE
30	30	Introduction and first reading03/13/2025
31	31	Referred to Labor 2.1 (3) employment by a seasonal employee, as defined in subdivision 35.; or
32	32	2.2 (4) an individual covered by a collective bargaining agreement as of January 1, 2026,
33	33	2.3until a successor collective bargaining agreement (i) becomes effective, and (ii) specifically
34	34	2.4directs that all individuals covered by the agreement are in covered employment under this
35	35	2.5section.
36	36	2.6 (d) Entities that are excluded under this section may opt in to coverage following a
37	37	2.7procedure determined by the commissioner. In such cases, services provided by employees
38	38	2.8are considered covered employment under subdivision 15.
39	39	2.9 (e) The commissioner may adopt rules in accordance with chapter 14 to:
40	40	2.10 (1) further define the application of this subdivision; and
41	41	2.11 (2) establish the criteria for covered employment for individuals that do not meet the
42	42	2.12criteria in paragraphs (a) and (b), but that perform services as an employee to a Minnesota
43	43	2.13employer.
44	44	2.14 Sec. 2. Minnesota Statutes 2024, section 268B.01, subdivision 23, is amended to read:
45	45	2.15 Subd. 23.Family member.(a) "Family member" means, with respect to an applicant:
46	46	2.16 (1) a spouse or domestic partner;
47	47	2.17 (2) a child, including a biological child, adopted child, foster child, stepchild, child of
48	48	2.18a domestic partner, or child to whom the applicant stands in loco parentis, is a legal guardian,
49	49	2.19or is a de facto custodian;
50	50	2.20 (3) a parent or legal guardian of the applicant;
51	51	2.21 (4) a sibling;
52	52	2.22 (5) a grandchild;
53	53	2.23 (6) a grandparent or spouse's grandparent; and
54	54	2.24 (7) a son-in-law or daughter-in-law; and.
55	55	2.25 (8) an individual who has a personal relationship with the applicant that creates an
56	56	2.26expectation and reliance that the applicant care for the individual without compensation,
57	57	2.27whether or not the applicant and the individual reside together.
58	58	2.28 (b) For the purposes of this chapter, "grandchild" means a child of the applicant's child.
59	59	2.29 (c) For the purposes of this chapter, "grandparent" means a parent of the applicant's
60	60	2.30parent.
61	61	2Sec. 2.
62	62	25-04261 as introduced02/25/25 REVISOR SS/BM 3.1 (d) For the purposes of this chapter, "parent" means the biological, adoptive, de facto
63	63	3.2custodian, or foster parent, stepparent, or legal guardian of an applicant or the applicant's
64	64	3.3spouse, or an individual who stood in loco parentis to an applicant when the applicant was
65	65	3.4a child.
66	66	3.5 Sec. 3. Minnesota Statutes 2024, section 268B.01, subdivision 35, is amended to read:
67	67	3.6 Subd. 35.Seasonal employee.(a) A seasonal employee is an individual who is employed
68	68	3.7for no more than 150 180 days during any consecutive 52-week period in hospitality by an
69	69	3.8employer whose average receipts during any six months of the preceding calendar year
70	70	3.9were not more than 33 percent of its average receipts for the other six months of such year.
71	71	3.10 (b) For the purposes of this section, "hospitality" has the meaning given under the
72	72	3.11collective definitions in section 157.15, subdivisions 4 to 9 and 11 to 14.
73	73	3.12 (c) For an individual to be classified as a seasonal employee, an employer must apply
74	74	3.13to the department in a format and manner prescribed by the commissioner and certify that:
75	75	3.14 (1) the employee meets or will meet the 150-day 180-day maximum employment duration
76	76	3.15under this subdivision;
77	77	3.16 (2) the employee's primary line of work is hospitality;
78	78	3.17 (3) the employer meets the receipts threshold under this subdivision; and
79	79	3.18 (4) the employer has provided the required employee notice required under section
80	80	3.19268B.26.
81	81	3.20 (d) An employer must notify the department, in a format and manner prescribed by the
82	82	3.21commissioner, within five business days if a previously classified seasonal employee no
83	83	3.22longer meets the criteria above and is no longer a seasonal employee.
84	84	3.23 Sec. 4. Minnesota Statutes 2024, section 268B.02, is amended by adding a subdivision to
85	85	3.24read:
86	86	3.25 Subd. 7.Private administration.The commissioner may contract with a private company
87	87	3.26to fulfill the following duties assigned to the commissioner:
88	88	3.27 (1) processing benefit applications, determining eligibility for benefits, and calculating
89	89	3.28benefit amounts under sections 268B.04 to 268B.07;
90	90	3.29 (2) making payments to applicants under section 268B.03;
91	91	3Sec. 4.
92	92	25-04261 as introduced02/25/25 REVISOR SS/BM 4.1 (3) handling elections of coverage from self-employed individuals and independent
93	93	4.2contractors under section 268B.11; and
94	94	4.3 (4) withholding tax and child support from benefits under sections 268B.145 and
95	95	4.4268B.155.
96	96	4.5 Sec. 5. Minnesota Statutes 2024, section 268B.04, subdivision 3, is amended to read:
97	97	4.6 Subd. 3.Weekly benefit amount; maximum amount of benefits available; prorated
98	98	4.7amount.(a) Subject to the maximum weekly benefit amount, an applicant's weekly benefit
99	99	4.8is calculated by adding the amounts obtained by applying the following percentage to 67
100	100	4.9percent of an applicant's average weekly wage during the high quarter of the base period:.
101	101	4.10 (1) 90 percent of wages that do not exceed 50 percent of the state's average weekly wage;
102	102	4.11plus
103	103	4.12 (2) 66 percent of wages that exceed 50 percent of the state's average weekly wage but
104	104	4.13not 100 percent; plus
105	105	4.14 (3) 55 percent of wages that exceed 100 percent of the state's average weekly wage.
106	106	4.15 (b) For applicants that have changed employers within the base period, the weekly benefit
107	107	4.16amount is calculated based on the highest quarter of wages in the base period.
108	108	4.17 (c) The state's average weekly wage is the average wage as calculated under section
109	109	4.18268.035, subdivision 23, at the time a benefit amount is first determined.
110	110	4.19 (d) The maximum weekly benefit amount is the state's average weekly wage as calculated
111	111	4.20under section 268.035, subdivision 23.
112	112	4.21 (e) The state's maximum weekly benefit amount, computed in accordance with section
113	113	4.22268.035, subdivision 23, applies to leaves established effective on or after the last Sunday
114	114	4.23in October. Once established, an applicant's weekly benefit amount is not affected by the
115	115	4.24last Sunday in October change in the state's maximum weekly benefit amount.
116	116	4.25 (f) For a covered individual receiving family or medical leave, a weekly benefit amount
117	117	4.26is prorated when:
118	118	4.27 (1) the covered individual works hours for wages;
119	119	4.28 (2) the covered individual uses paid sick leave, paid vacation leave, or other paid time
120	120	4.29off that is not considered a supplemental benefit payment as defined in section 268B.01,
121	121	4.30subdivision 41; or
122	122	4.31 (3) leave is taken intermittently.
123	123	4Sec. 5.
124	124	25-04261 as introduced02/25/25 REVISOR SS/BM 5.1 EFFECTIVE DATE.This section is effective November 1, 2025.
125	125	5.2 Sec. 6. Minnesota Statutes 2024, section 268B.04, subdivision 5, is amended to read:
126	126	5.3 Subd. 5.Maximum length of benefits.(a) The total number of weeks that an applicant
127	127	5.4may take benefits in a single benefit year for a serious health condition is the lesser of 12
128	128	5.5weeks, or 12 weeks minus the number of weeks within the same benefit year that the
129	129	5.6applicant received benefits for bonding, safety leave, family care, and qualifying exigency
130	130	5.7plus eight weeks. any reason is:
131	131	5.8 (1) for employees of an employer with more than 50 employees, 12 weeks; and
132	132	5.9 (2) for employees of an employer with 50 employees or fewer, six weeks.
133	133	5.10 (b) The total number of weeks that an applicant may take benefits in a single benefit
134	134	5.11year for bonding, safety leave, family care, and qualifying exigency is the lesser of 12 weeks,
135	135	5.12or 12 weeks minus the number of weeks within the same benefit year that the applicant
136	136	5.13received benefits for a serious health condition plus eight weeks.
137	137	5.14 EFFECTIVE DATE.This section is effective November 1, 2025.
138	138	5.15 Sec. 7. Minnesota Statutes 2024, section 268B.06, subdivision 9, is amended to read:
139	139	5.16 Subd. 9.Seasonal employment denial.(a) An applicant is not eligible to receive benefits
140	140	5.17or take protected leave under the provisions of this chapter for any week the applicant is a
141	141	5.18seasonal employee as defined in section 268B.01, subdivision 35.
142	142	5.19 (b) If benefits are denied to any applicant under paragraph (a) who remains employed
143	143	5.20more than 150 180 days, the applicant is only entitled to benefits beginning the Sunday
144	144	5.21following the completion of the 150-day 180-day period.
145	145	5.22 EFFECTIVE DATE.This section is effective November 1, 2025.
146	146	5.23 Sec. 8. Minnesota Statutes 2024, section 268B.14, subdivision 5a, is amended to read:
147	147	5.24 Subd. 5a.Small employer premium rate.(a) Small employers are eligible for the
148	148	5.25premium rates provided by this subdivision if the employer:
149	149	5.26 (1) has 30 50 or fewer employees pursuant to subdivision 5b; and
150	150	5.27 (2) the average wage for that employer as calculated in subdivision 5c is less than or
151	151	5.28equal to 150 percent of the state's average wage in covered employment for the basis period.
152	152	5.29 (b) The premium rate for small employers eligible under this subdivision is 75 percent
153	153	5.30of the annual premium rate calculated in subdivisions 6 and 7, as follows:
154	154	5Sec. 8.
155	155	25-04261 as introduced02/25/25 REVISOR SS/BM 6.1 (1) employers must pay a minimum of 25 50 percent of the rate calculated in subdivisions
156	156	6.26 and 7. Employers shall not deduct from any employees' pay to fund the employer portion
157	157	6.3of the premium; and
158	158	6.4 (2) employees must pay the remaining portion due under this subdivision, if any, of the
159	159	6.5premium not paid by the employer. The employer must make wage deductions as necessary
160	160	6.6under this subdivision to fund the employee portion of the premium.
161	161	6.7 EFFECTIVE DATE.This section is effective January 1, 2026.
162	162	6Sec. 8.
163	163	25-04261 as introduced02/25/25 REVISOR SS/BM