01-03-2025
Minnesota GOP moves to delay or repeal state's Paid Family Leave program
Minnesota Republicans have introduced two bills that would either delay or repeal entirely the Paid Family and Medical Leave program that is set to take effect beginning in 2026.
The program is set to launch on Jan. 1, 2026, funding by a new 0.88% payroll tax, which is higher than the 0.7% rate approved by the Legislature in 2023. The tax will be split equally between employer and employee.
Earlier this month, Minnesota GOP lawmakers had proposed bill HF 11 that calls for the program to be delayed for a year to further discuss an alternative, but a new bill — HF 1241 — introduced more recently would repeal it altogether, with any unspent funds from the program returned to the general fund.
The program guarantees Minnesota workers can take 12 weeks of paid family leave and 12 weeks of paid medical leave per year, capped at 20 weeks in a single year. Qualifying conditions include pregnancy, serious health conditions, a family member's serious health conditions, safety leave, and bonding leave.
The proposal to repeal the program brought swift condemnation from the DFL, with executive director Heidi Kraus Kaplan saying: "Scrapping this program before it even gets off the ground would force Minnesotans to choose between their paycheck and caring for a newborn or a sick family member."
But Republicans have raised concerns over the cost of the program, with the payroll tax increasing even before the program starts.
Speaking in favor of a delay to the program earlier this month, Rep. Dave Baker (R-Willmar) said: "These are real dollars coming out of Minnesotans' paychecks and cutting into the razor-thin margins of family-owned businesses struggling to stay afloat.
"It's time to take a step back, delay PFML implementation, and find a practical solution that supports both employees and job creators."
Baker, along with 31 other Republicans, have authored the delay bill, while 16 Republicans are listed as authors for the repeal move. A spokesperson for the Minnesota GOP says no hearings or action has been taken on the repeal bill, but the delay proposal has been addressed in a hearing and has moved to the Ways and Means Committee.
Supporters of paid family leave argue that that the program has been thoroughly discussed the past two years, works in other countries and states, and will level the playing field for small businesses in their effort to hire and retain employees.
The Minnesota DFL continued to accuse GOP lawmakers of being "determined to shred programs that help working-class Minnesotans while cutting taxes for the ultra-wealthy."
