Minnesota Now with Nina Moini

Paid family and medical leave bill passes Minnesota House

People cheer in the chamber-2
Supporters of the proposal to create a state paid family and medical leave program hoisted signs and greeted members of the Minnesota House Tuesday as they entered the chamber.
Dana Ferguson | MPR News

It was a close vote, but the Minnesota House of Representatives passed a bill Tuesday night that would create a state-run paid family and medical leave program. The vote was 68 to 64.

MPR News senior political reporter Dana Ferguson joined MPR News Host Cathy Wurzer to talk more about the issue and how the plan would work.

Use the audio player above to listen to the full conversation. 

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Audio transcript

CATHY WURZER: And while we're talking about news at the Capitol, it was a close vote, but the Minnesota House of Representatives passed a bill last night that would create a state run paid family and medical leave program. The vote was 68 to 64. One of our political reporters Dana Ferguson joins us right now to talk more about the issue and how this plan would work. Hey, Dana. Thanks for being here.

DANA FERGUSON: Hey. Thank you for having me, Cathy.

CATHY WURZER: All right. Now, for folks not following what's happening here, tell us a little bit about the House proposal.

DANA FERGUSON: Sure. So the Minnesota House last night passed a plan that would create a new paid family and medical leave program. Under the proposal, workers and employers in the state could pay into the program through a payroll tax. And similar to the state's unemployment insurance fund, workers could then get a partial pay replacement if they get sick, want to care for a new child, or need to care for a loved one.

Workers could take up to 12 weeks of paid leave for family reasons or for medical reasons, and then they could take an additional six weeks on top of that if they have another illness or need to take care of a loved one within a year. Benefits would start in 2025.

CATHY WURZER: OK. So let's look at the math a little bit here. Did lawmakers give an example of how this could play out?

DANA FERGUSON: Yes. The math is a little tricky. So imagine that you're going on parental leave. The program would give you up to 12 weeks of paid leave to take time to have a baby, recover, and bond with your child. For mothers who have pregnancy complications, that paid leave could extend up to 24 weeks total in one year. And for others who have a baby or adopt a child and take up to 12 weeks of leave, they could then have six additional weeks of paid leave if they get sick or need to take care of a loved one during the same year.

CATHY WURZER: OK. And for workers that would be eligible to take that paid leave time, would they get their full salary? How would that work?

DANA FERGUSON: The bill puts in place a scale for pay replacement that gives fuller salary replacement to workers who make less money-- so like 70% to 90% pay replacement for entry level or blue collar workers. Meanwhile, higher income earners who in theory would have more financial savings and ability to handle taking leave would get about 50% to 70% of their regular pay through the program.

CATHY WURZER: OK. So employers kick in and so do employees. How much would each group expect to pay?

DANA FERGUSON: The proposal would use about $1.3 billion of Minnesota's budget surplus to get the fund off the ground. Then, starting in 2025, workers and employers would see a 0.7% payroll tax to keep the program going. There are also some caveats for smaller businesses and others that already meet these standards.

CATHY WURZER: So would all employers have to join the program?

DANA FERGUSON: No. There are exceptions for businesses that offer paid family and medical leave already that meet or exceed these standards, so those employers would just have to pay an oversight fee. And others that have already negotiated Union contracts would not be subject to the leave standards-- at least, right away. Independent contractors and self-employed workers could opt into the program at a lower rate, but it wouldn't be required.

And businesses with 30 employees or less could see lower payroll tax rates, too. Others that don't meet the standards outlined in the bill would have to join, and that spurred some disagreement among the business community. Some small business owners say having a state program would help them offer paid leave benefits that they can't right now, but others say the change will be really expensive to adopt and could create serious issues with staffing since they would need to find temporary workers to fill gaps.

CATHY WURZER: OK. You mentioned businesses. What kind of reaction are you hearing to this from businesses and workers, for that matter?

DANA FERGUSON: Well, a lot of business interests don't like it. The Minnesota Chamber of Commerce put out a statement after the bill passed last night calling it part of an anti-employer, anti-business agenda that they've seen with single party control this year. They said with a nearly $18 billion surplus, there is no need to impose billions in tax increases.

And the Chamber contends that states that have implemented state-run paid leave plans have experienced more population loss than growth, and they say the legislature should be taking steps to make the state more competitive, not less. I should say, too, that some business owners, including some small business owners, have supported the bill as it's moved through committees and that there are a lot of other groups that support it, including faith leaders, unions, and health organizations.

CATHY WURZER: OK. So it passed the House. Has it had a vote yet in the Senate?

DANA FERGUSON: It has not yet had a vote in the Senate, and they are set to consider either their version, which currently has about a 20 week maximum for leave, or pull in the House language. If they take up the House bill and pass it, that would move to the governor's desk for his signature. If they pass a different version, the bill would have to go to conference committee where lawmakers would then work out a compromise version. Governor Tim Walz has said he supports the policy and would sign it into law.

CATHY WURZER: OK. Dana, thank you.

DANA FERGUSON: Thanks, Cathy. I hope you have a good day.

CATHY WURZER: I hope you do, too. That's one of MPR's political reporters Dana Ferguson on the paid family and medical leave bill that passed the Minnesota House last night.

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