ST. PAUL – A plan that creates a mandatory, government-run paid leave program funded by tax increases on employers and employees has been approved in the Minnesota House. State Representative Greg Davids (R-Preston) opposed the measure.
“This bill would be devastating to all small businesses in rural Minnesota, but especially those with a limited number of workers,” Davids said.
Davids said the nearly $3 billion program will be paid for by a brand-new tax on employers and employees and it expands employers’ leave obligations to part-time and temporary workers.
Davids noted the plan would apply to virtually every employer in Minnesota. Unlike the Federal Family and Medical Leave Act (FMLA) which only applies to employers with 50 or more employees, Davids said the House Democrat paid family and medical leave program would apply to all employers including those with just one employee.
The Minnesota Chamber of Commerce says that 80% of their members already provide paid family leave. Davids noted that this bill threatens workers benefits, and employees may end up with a worse paid family leave program than the one their employer currently offers.
Along with the $3 billion tax increase, Davids said as many as 400 new full-time employees will need to be hired to develop and administrate the statewide program.
The bill now heads to the Minnesota Senate for further debate.