Paid Family and Medical Leave Update

This week, the Senate and House continue the hearing process for Paid Family and Medical Leave, HF2/SF2, which has been up in multiple committees. In this week’s Senate Commerce and Consumer Protection Committee hearing, the committee did amend the bill to have a cap of 1.2% on potential annual premium increases. Reference the chart below to see how the Paid Family and Medical Leave program compares to others.  
 
Hospitality Minnesota is closely watching the bill and weighing at committee hearings and directly with legislators. Additionally, stay tuned for additional information forthcoming on Paid Family and Medical leave and engaging with legislators. In the meantime, watch previous testimony below or read letters submitted by Hospitality Minnesota.
  
Key components of the Paid Family and Medical Leave legislation, as drafted: 

• Establishment of a state-administered paid leave insurance program. The Governor’s proposed budget has a $4.1 billion cash infusion to start the program.  
• Payroll tax of 0.7% with no premium cap*.  
  • *Senate version has 1.2% cap has of 01/31. 
• Employer will pay a yearly premium on employee's taxable wages. Employer may deduct up to 50% of premium for employee's wage. 
• Beginning on January 1, 2026, premiums may increase or decrease annual percentage rates based on the formula set by the state.  
• Funds partial wage replacement benefits for 12 weeks of paid parental and family leave; and 12 weeks of paid medical leave.  
• Employees could miss up to 24 weeks of work, plus potentially add Earned Safe and Sick Time or Family Medical Leave Act.  
• Effective January 1, 2024.  

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Read SF2/HF2
Reference Paid Family Medical Leave State Comparison Chart