ST. PAUL, MN — The Minnesota Legislature has approved the final Workforce, Labor and Economic Development budget bill, advancing a set of pragmatic policies designed to strengthen Minnesota’s workforce, support local businesses, and deliver targeted investments in critical areas of need.
“I came into this session with the goal of making Minnesota more competitive,” said Rep. Dave Baker (R-Willmar), Republican Chair of the House Workforce Committee. “With the House evenly divided, we weren’t able to find agreement on everything, but we made meaningful steps toward reducing the harm caused by last biennium’s mandates, preventing new burdensome regulations from advancing, and opening the door for future reforms.”
Among the bill’s key provisions is a targeted expansion of unemployment insurance benefits for mining workers in Greater Minnesota, a critical win for communities that rely on one of the state’s most vital industries.
“We fought hard to secure unemployment benefits for our state’s mining workers, protecting the driving force behind a cornerstone of our economy,” Baker said. “This will bring real stability to families and regions that depend on these jobs.”
The bill also includes technical changes to the Earned Sick and Safe Time (ESST) law to improve clarity and implementation, particularly for smaller employers. In addition, while the tax rate for the new Paid Family and Medical Leave (PFML) program was slightly reduced, Baker noted that further work is necessary to ensure the program is sustainable for both businesses and workers.
“We were able to make modest tweaks to ESST to make it more workable, especially for those trying to comply in good faith,” Baker added. “And while we secured a small reduction to the PFML tax, more meaningful adjustments are still needed to make sure the program provides the support workers deserve without placing unworkable costs and policies on our small businesses.”
Additional provisions in the bill include:
- Oversight efforts to help prevent waste, fraud and abuse
- Overall reductions to the budget, reducing wasteful spending and reprioritizing dollars for programs Minnesotans need.
- A new teacher apprenticeship initiative and expanded STEM grant funding
- Mental health investments for workers in the construction and trades industries
- $10 million for vocational training programs supporting Minnesotans with disabilities
- A rollback of sweeping non-compete restrictions to better balance business needs and worker mobility
- And a rejection of proposals to extend unemployment benefits to striking workers or those searching remotely
“We’ve made progress, but our work is far from done,” Baker concluded. “Minnesotans deserve workforce policies that promote growth, protect jobs, and reflect the day-to-day realities of both workers and employers. While this bill isn’t perfect, it reflects the necessity of compromise in a tied House. I’m committed to continuing this work during the interim and into next session, especially on reforming Paid Family Leave to ensure it’s affordable and effective for everyone.”
The final bill passed 90-41.
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