(KNSI) – An organization representing small businesses is concerned about the real cost of Minnesota’s Paid Family and Medical Leave act, signed into law this week.
The National Federation of Independent Business in Minnesota says it is disappointed with the mandate on business owners and their employees. The program is paid for by a 0.7% payroll tax and employers can pass half that to their workers. The NFIB says it will amount to $1.5 billion per year.
The money will be used to pay a worker who needs to take time off to care for a loved one, the birth of a child, or if they’re sick. People can take up to five months of leave a year.
The bill requires the state to do an independent study of the program by October 31st. The NFIB says the legislation includes complex employment regulations and severe penalties for noncompliance. The group also says more money will need to cover the program’s cost. If the report shows the program is not financially viable, the commissioner of Employment and Economic Development can increase the payroll tax to 1.2% without legislative approval.
The NFIB says businesses who are still trying to survive after the COVID-19 lockdowns can scarcely afford it and there’s no provision to help small businesses, already struggling to find and keep workers, to replace labor lost during the time off.
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