House Bill Would Delay Minnesota Paid Leave Implementation to 2027

February 18, 2025

The workforce, labor, and economic development committee approved the proposal on a party-line vote.

On Feb. 13, the House Workforce, Labor, and Economic Development Finance and Policy Committee heard HF11, a bill authored by Rep. Dave Baker (R-Willmar), that would delay the implementation of Minnesota Paid Leave by one year — from Jan. 1, 2026, to Jan. 1, 2027.

During the hearing, Rep. Baker, committee chair, stated that this bill is the first of several related proposals expected this year. After several hours of testimony and discussion, the committee approved the bill on a 7-6 party line vote and sent it to the House Ways and Means Committee.

Public employers support key changes

The League of Minnesota Cities, along with the Association of Minnesota Counties, Minnesota Inter-County Association, Minnesota School Boards Association, and the Minnesota Association of Townships, submitted joint written testimony (pdf) advocating for modifications to Minnesota Paid Leave before it takes effect. These proposed changes align with positions developed by LMC’s policy committees in summer 2024 and approved by the League’s Board of Directors in November 2024.

Public employers support changes to Minnesota Paid Leave such as:

  • Clarifying that the Minnesota Paid Leave 50/50 premium tax split is retained by public employers as an inherent managerial right.
  • Exempting elected officials from both benefits and premiums.
  • Exempting election judges and certain seasonal employees from the program.
  • Clarifying that Minnesota Paid Leave benefits cannot be stacked with other federal leave programs, particularly as it relates to bonding leave.

What’s next?

During the bill hearing, the Minnesota Department of Employment and Economic Development (DEED) testified that the program remains on track to be fully operational by the Jan. 1, 2026, launch. Committee discussion indicated that DEED would return later to provide a full overview on implementation logistics, including IT preparedness, and employer outreach efforts.

Your next step

City leaders are encouraged to stay informed about bills related to the Minnesota Paid Leave law and other legislative developments by subscribing to the Cities Bulletin e-newsletter and reading the latest news on the League’s website.

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