Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2529 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; delaying the implementation of the Minnesota Paid Leave
3	3	1.3 Law by one year; amending Minnesota Statutes 2024, sections 268B.02, subdivision
4	4	1.4 6; 268B.14, subdivisions 6, 7; 268B.17; 268B.18; 268B.25; 268B.26.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Minnesota Statutes 2024, section 268B.02, subdivision 6, is amended to read:
7	7	1.7 Subd. 6.Procurement.For purposes of administering this chapter, until July 1, 2026
8	8	1.82027, the department is exempt from the requirements of sections 16A.15, subdivision 3;
9	9	1.916C.06; 16C.08 to 16C.09; and any other applicable state procurement laws and procedures.
10	10	1.10 EFFECTIVE DATE.This section is effective the day following final enactment.
11	11	1.11 Sec. 2. Minnesota Statutes 2024, section 268B.14, subdivision 6, is amended to read:
12	12	1.12 Subd. 6.Annual employer premium rates.The employer premium rates beginning
13	13	1.13January 1, 2026 2027, shall be as follows:
14	14	1.14 (1) for an employer participating in both family and medical benefit programs, 0.7
15	15	1.15percent;
16	16	1.16 (2) for an employer participating in only the medical benefit program and with an
17	17	1.17approved private plan for the family benefit program, 0.4 percent; and
18	18	1.18 (3) for an employer participating in only the family benefit program and with an approved
19	19	1.19private plan for the medical benefit program, 0.3 percent.
20	20	1.20 EFFECTIVE DATE.This section is effective January 1, 2027.
21	21	1Sec. 2.
22	22	25-02235 as introduced01/21/25 REVISOR SS/KR
23	23	SENATE
24	24	STATE OF MINNESOTA
25	25	S.F. No. 2529NINETY-FOURTH SESSION
26	26	(SENATE AUTHORS: RARICK)
27	27	OFFICIAL STATUSD-PGDATE
28	28	Introduction and first reading03/13/2025
29	29	Referred to Jobs and Economic Development 2.1 Sec. 3. Minnesota Statutes 2024, section 268B.14, subdivision 7, is amended to read:
30	30	2.2 Subd. 7.Premium rate adjustments.The commissioner may adjust the annual premium
31	31	2.3rates pursuant to this section prior to January 1, 2026 2027. By July 31, 2026 2027, and
32	32	2.4then by July 31 of each year thereafter, the commissioner must adjust the annual premium
33	33	2.5rates for the following calendar year based on program historical experience and sound
34	34	2.6actuarial principles and so that the projected fund balance as a percentage of total program
35	35	2.7expenditure does not fall below 25 percent. The commissioner shall contract with a qualified
36	36	2.8independent actuarial consultant to conduct an actuarial study for this purpose no less than
37	37	2.9every year. A copy of all actuarial studies, and any revisions or other documents received
38	38	2.10that relate to an actuarial study, must be provided promptly to the chairs and ranking minority
39	39	2.11members of the legislative committees with jurisdiction over this chapter. All actuarial
40	40	2.12studies, and any revisions or other documents received that relate to an actuarial study, must
41	41	2.13also be filed with the Legislative Reference Library in compliance with section 3.195. A
42	42	2.14qualified independent actuarial consultant is one who is a Fellow of the Society of Actuaries
43	43	2.15(FSA) and a Member of the American Academy of Actuaries (MAAA) and who has
44	44	2.16experience directly relevant to the analysis required. In no year shall the annual premium
45	45	2.17rate exceed 1.2 percent of taxable wages paid to each employee.
46	46	2.18 EFFECTIVE DATE.This section is effective January 1, 2027.
47	47	2.19 Sec. 4. Minnesota Statutes 2024, section 268B.17, is amended to read:
48	48	2.20 268B.17 ADMINISTRATIVE COSTS.
49	49	2.21 Beginning January 1, 2026 2027, and each calendar year thereafter, the commissioner
50	50	2.22may spend up to seven percent of projected benefit payments for that calendar year for the
51	51	2.23administration of this chapter. The department may enter into interagency agreements with
52	52	2.24the Department of Labor and Industry and the Department of Commerce, including
53	53	2.25agreements to transfer funds, subject to the limit in this section, for the Department of Labor
54	54	2.26and Industry to fulfill its enforcement authority of this chapter and for the Department of
55	55	2.27Commerce to fulfill the requirements of this chapter.
56	56	2.28 EFFECTIVE DATE.This section is effective July 1, 2026.
57	57	2.29 Sec. 5. Minnesota Statutes 2024, section 268B.18, is amended to read:
58	58	2.30 268B.18 PUBLIC OUTREACH.
59	59	2.31 Beginning in fiscal year 2026 2027, the commissioner must use at least 0.5 percent of
60	60	2.32projected benefit payments under section 268B.17 for the purpose of outreach, education,
61	61	2Sec. 5.
62	62	25-02235 as introduced01/21/25 REVISOR SS/KR 3.1and technical assistance for employees, employers, and self-employed individuals eligible
63	63	3.2to elect coverage under section 268B.11. The department may enter into interagency
64	64	3.3agreements with the Department of Labor and Industry and the Department of Commerce,
65	65	3.4including agreements to transfer funds, subject to the limit in section 268B.17, to accomplish
66	66	3.5the requirements of this section. At least one-half of the amount spent under this section
67	67	3.6must be used for grants to community-based groups.
68	68	3.7 EFFECTIVE DATE.This section is effective January 1, 2027.
69	69	3.8 Sec. 6. Minnesota Statutes 2024, section 268B.25, is amended to read:
70	70	3.9 268B.25 ANNUAL REPORTS.
71	71	3.10 (a) Beginning on or before January 1, 2027 2028, the commissioner must annually report
72	72	3.11to the Department of Management and Budget and the house of representatives and senate
73	73	3.12committee chairs with jurisdiction over this chapter on program administrative expenditures
74	74	3.13and revenue collection for the prior fiscal year, including but not limited to:
75	75	3.14 (1) total revenue raised through premium collection;
76	76	3.15 (2) the number of self-employed individuals or independent contractors electing coverage
77	77	3.16under section 268B.11 and amount of associated revenue;
78	78	3.17 (3) the number of covered business entities paying premiums under this chapter and
79	79	3.18associated revenue;
80	80	3.19 (4) administrative expenditures including transfers to other state agencies expended in
81	81	3.20the administration of the chapter;
82	82	3.21 (5) summary of contracted services expended in the administration of this chapter;
83	83	3.22 (6) grant amounts and recipients under sections 268B.18 and 268B.29;
84	84	3.23 (7) an accounting of required outreach expenditures;
85	85	3.24 (8) summary of private plan approvals including the number of employers and employees
86	86	3.25covered under private plans; and
87	87	3.26 (9) adequacy and use of the private plan approval and oversight fee.
88	88	3.27 (b) Beginning on or before January 1, 2027 2028, the commissioner must annually
89	89	3.28publish a publicly available report providing the following information for the previous
90	90	3.29fiscal year:
91	91	3.30 (1) total eligible claims;
92	92	3Sec. 6.
93	93	25-02235 as introduced01/21/25 REVISOR SS/KR 4.1 (2) the number and percentage of claims attributable to each category of benefit;
94	94	4.2 (3) claimant demographics by age, race or ethnicity, gender, average weekly wage,
95	95	4.3occupation, and the type of leave taken;
96	96	4.4 (4) the percentage of claims denied and the reasons therefor, including but not limited
97	97	4.5to insufficient information and ineligibility and the reason therefor;
98	98	4.6 (5) average weekly benefit amount paid for all claims and by category of benefit;
99	99	4.7 (6) changes in the benefits paid compared to previous fiscal years;
100	100	4.8 (7) processing times for initial claims processing, initial determinations, and final
101	101	4.9decisions;
102	102	4.10 (8) average duration for cases completed;
103	103	4.11 (9) the number of cases remaining open at the close of such year; and
104	104	4.12 (10) the employers who received approval by the department for seasonal employee
105	105	4.13classification and the number of seasonal employees approved for each year.
106	106	4.14 EFFECTIVE DATE.This section is effective January 1, 2027.
107	107	4.15 Sec. 7. Minnesota Statutes 2024, section 268B.26, is amended to read:
108	108	4.16 268B.26 NOTICE REQUIREMENTS.
109	109	4.17 (a) Each employer must post in a conspicuous place on each of its premises a workplace
110	110	4.18notice prepared by the commissioner providing notice of benefits available under this chapter.
111	111	4.19The required workplace notice must be in English and each language other than English
112	112	4.20which is the primary language of five or more employees or independent contractors of that
113	113	4.21workplace, if such notice is available from the department.
114	114	4.22 (b) Each employer must issue to each employee not more than 30 days from the beginning
115	115	4.23date of the employee's employment, or 30 days before premium collection begins, whichever
116	116	4.24is later, the following written information provided by the department in the primary language
117	117	4.25of the employee:
118	118	4.26 (1) an explanation of the availability of family and medical leave benefits provided under
119	119	4.27this chapter, including rights to reinstatement and continuation of health insurance;
120	120	4.28 (2) the amount of premium deductions made by the employer under this chapter;
121	121	4.29 (3) the employer's premium amount and obligations under this chapter;
122	122	4.30 (4) the name and mailing address of the employer;
123	123	4Sec. 7.
124	124	25-02235 as introduced01/21/25 REVISOR SS/KR 5.1 (5) the identification number assigned to the employer by the department;
125	125	5.2 (6) instructions on how to file a claim for family and medical leave benefits;
126	126	5.3 (7) the mailing address, email address, and telephone number of the department; and
127	127	5.4 (8) any other information required by the department.
128	128	5.5Delivery is made when an employee provides written or electronic acknowledgment of
129	129	5.6receipt of the information. In cases where an employee refuses to acknowledge receipt, an
130	130	5.7employer must be able to demonstrate the way the employee had been notified.
131	131	5.8 (c) An employer that fails to comply with this section may be issued, for a first violation,
132	132	5.9a civil penalty of $50 per employee, and for each subsequent violation, a civil penalty of
133	133	5.10$300 per employee. The employer shall have the burden of demonstrating compliance with
134	134	5.11this section.
135	135	5.12 (d) Employer notice to an employee under this section may be provided in paper or
136	136	5.13electronic format. For notice provided in electronic format only, the employer must provide
137	137	5.14employee access to an employer-owned computer during an employee's regular working
138	138	5.15hours to review and print required notices.
139	139	5.16 (e) The department shall prepare a uniform employee notice form for employers to use
140	140	5.17that provides the notice information required under this section. The commissioner shall
141	141	5.18prepare the uniform employee notice in the five most common languages spoken in
142	142	5.19Minnesota.
143	143	5.20 (f) Each employer who employs or intends to employ seasonal employees as defined in
144	144	5.21section 268B.01, subdivision 35, must issue to each seasonal employee a notice that the
145	145	5.22employee is not eligible to receive paid family and medical leave benefits while the employee
146	146	5.23is so employed. The notice must be provided at the time an employment offer is made, or
147	147	5.24within 30 days of November 1, 2025 2026, for the employer's existing seasonal employees,
148	148	5.25and be in a form provided by the department. Delivery is made when an employee provides
149	149	5.26written or electronic acknowledgment of receipt of the information, or signs a statement
150	150	5.27indicating the employee's refusal to sign such acknowledgment.
151	151	5.28 EFFECTIVE DATE.This section is effective November 1, 2026.
152	152	5.29 Sec. 8. EFFECTIVE DATES.
153	153	5.30 (a) Notwithstanding any law to the contrary, the effective dates for the following sections
154	154	5.31of Minnesota Statutes are as follows:
155	155	5.32 (1) section 268B.03 is effective January 1, 2027;
156	156	5Sec. 8.
157	157	25-02235 as introduced01/21/25 REVISOR SS/KR 6.1 (2) section 268B.04 is effective November 1, 2026;
158	158	6.2 (3) section 268B.05 is effective November 1, 2026;
159	159	6.3 (4) section 268B.06 is effective November 1, 2026;
160	160	6.4 (5) section 268B.07 is effective November 1, 2026;
161	161	6.5 (6) section 268B.081 is effective November 1, 2026;
162	162	6.6 (7) section 268B.085, subdivision 1, is effective November 1, 2026;
163	163	6.7 (8) section 268B.085, subdivisions 2 and 3, are effective January 1, 2027;
164	164	6.8 (9) section 268B.09, subdivisions 1 to 4, are effective November 1, 2026;
165	165	6.9 (10) section 268B.09, subdivisions 5 to 8, are effective January 1, 2027;
166	166	6.10 (11) section 268B.10 is effective July 1, 2026;
167	167	6.11 (12) section 268B.11 is effective July 1, 2026;
168	168	6.12 (13) section 268B.13 is effective January 1, 2027;
169	169	6.13 (14) section 268B.14 is effective January 1, 2027;
170	170	6.14 (15) section 268B.145 is effective January 1, 2027;
171	171	6.15 (16) section 268B.15 is effective January 1, 2027;
172	172	6.16 (17) section 268B.155 is effective January 1, 2027;
173	173	6.17 (18) section 268B.16 is effective January 1, 2027;
174	174	6.18 (19) section 268B.17 is effective July 1, 2026;
175	175	6.19 (20) section 268B.18 is effective January 1, 2027;
176	176	6.20 (21) section 268B.185 is effective January 1, 2027;
177	177	6.21 (22) section 268B.24 is effective November 1, 2026;
178	178	6.22 (23) section 268B.25 is effective January 1, 2027;
179	179	6.23 (24) section 268B.26 is effective November 1, 2026;
180	180	6.24 (25) section 268B.27 is effective January 1, 2027; and
181	181	6.25 (26) section 268B.29 is effective January 1, 2027.
182	182	6.26 (b) The effective dates in paragraph (a) supersede and prevail over the effective date of
183	183	6.27any other amendments to the sections in paragraph (a) enacted in the 2025 regular or special
184	184	6Sec. 8.
185	185	25-02235 as introduced01/21/25 REVISOR SS/KR 7.1session of the legislature, regardless of order of enactment. The effective dates for changes
186	186	7.2made to the sections in paragraph (a) during the 2023-2024 legislative sessions are void.
187	187	7.3 EFFECTIVE DATE.This section is effective the day following final enactment.
188	188	7Sec. 8.
189	189	25-02235 as introduced01/21/25 REVISOR SS/KR