Changes to State Leave Mandates Debated at the Legislature

Minnesota Paid Leave and earned sick and safe time modifications were discussed by House members.

During the week of March 10, the Minnesota House of Representatives took several actions on proposed changes to the state’s paid leave program and the earned sick and safe time (ESST) statute. The primary discussions took place in the House Workforce, Labor, and Economic Development Finance and Policy Committee, though a priority bill for House Republicans was also brought up on the House floor.

Bill to delay Minnesota Paid Leave Implementation stalls

The first bill considered was HF 11, (Rep. Dave Baker, R-Willmar), which would delay implementation of the Minnesota Paid Leave program by one year to Jan. 1, 2027. The bill previously passed through the workforce, labor, and economic development committee and House Ways and Means Committee before being brought to the House floor on March 10.

Facing uncertainty over whether it had the 68 needed votes for passage, the House instead approved a motion to lay the bill on the table — a parliamentary move that allows the bill to be revisited at a later date. The bill’s path to final passage by the House is now in doubt and it will likely require amendments before any further legislative action.

House committee considers earned sick and safe time modifications

On March 12, the House workforce, labor, and economic development committee heard HF 1325, sponsored by Rep. Isaac Schultz (R-Elmdale Township). The bill proposed multiple changes to the ESST statute, which was originally enacted in 2023. Key provisions of HF 1325, as amended, include:

• Deletion of the effects on more generous sick and safe time policies section of statute, which relates to employees covered by employer-provided sick leave policies that exceed the ESST minimum accrual requirements.
• Deletion of a provision in the weather event exception section of statute, which would eliminate a collective bargaining provision that requires public employers to negotiate ESST use during weather events, such as snow emergencies, with employees who have foreseeable work duties.
• Delay of penalties for noncompliance with ESST statute requirements until 2026.
• Narrowing of the definition of “family member.”
• Prorating of ESST hours offered by employers to newly hired employees based on their start date within a calendar year.

The League of Minnesota Cities and other public employer groups testified in support of the legislation, focusing on changes to the collective bargaining provision and employer-provided leave protections. The bill was laid over for possible inclusion in an omnibus bill.

House reviews modifications to Minnesota Paid Leave program

On March 13, the House workforce, labor, and economic development committee heard HF 1976 (Rep. Dave Baker, R-Willmar), which would modify the Minnesota Paid Leave program before its scheduled implemented on Jan. 1, 2026. Key provisions of the bill, as amended, include:

• Clarification of the paid leave premium structure, ensuring that employers and employees split costs equally at 50% each. Current law states employers must pay at least 50%, with employees covering up to 50%.
• Exempting elected officials from program eligibility.
• Establishing an 80-hour annual work threshold in a calendar year to qualify for the benefit, which would exempt certain short-term positions like election judges.
• Narrowing the definition of “family member.”
• Tying leave duration to employer size, allowing six weeks of leave for employees at businesses with fewer than 50 workers, while those at larger employers would qualify for 12 weeks off.

The League of Minnesota Cities and other public employer groups testified in favor of the legislation, particularly supporting paid leave premium clarification, the exemption for public officials, and the exclusion of certain short-term employees such as election judges. More than 20 individuals testified during the hearing. The bill was laid over for possible inclusion in an omnibus bill.

LMC staff take

With the House of Representatives set to begin a power-sharing agreement the week of March 17 — giving Republicans and Democrats equal control over most committees — bills seeking substantive changes to Minnesota Paid Leave and ESST now face a more difficult path forward.

House Republicans have led efforts to modify these programs, while House Democrats have opposed changes to their key legislative achievements from the previous biennium. These bills are likely to become significant components of end-of-session negotiations as legislative leaders try to reach a deal on a two-year state budget.

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