Republican Legislators Introduce Paid Family and Medical Leave Proposal

(KNSI) — House Republicans Tuesday unveiled their plan for a Paid Family and Medical Leave Insurance Program.

The plan is an alternative to House File 2 and provides paid family and medical leave benefits for employees without mandates and new taxes.

The bill Democrats have introduced creates a state-run family and medical benefits insurance program and requires employers to grant workers up to 12 weeks of paid family leave and up to 12 additional weeks of paid medical leave in 52 weeks. It would be funded by increased payroll taxes businesses could pass on to their employees. Governor Tim Walz has said he is willing to negotiate on details such as the number of weeks or situations for which the leave would qualify.

The National Federation of Independent Businesses is concerned the payroll tax would sink small businesses and small business owners who are already struggling amid record inflation, worker shortages, and supply chain issues which are eating into their bottom line, making it difficult to keep the doors open.

Rep. Dave Baker of Willmar agrees that paid family and medical leave is something that is widely supported and is something businesses of all sizes want to do for their employees, but it “mandates a new payroll tax that will impact everyone earning a paycheck in Minnesota and the massive government agency it creates is not something that Minnesotans are asking for. Our plan incentivizes small businesses to participate in the FaMLI Plan by providing a tax credit and allows the private sector to operate the program.”

Minnesotans may opt-in to the program for $5 a week if an employer does not join by using the parameters of the state’s paid leave policy. Employees satisfied with current benefits offered by their employers can keep them without being forced onto a government-run program.

The NFIB adds the state has tens of billions of dollars in surplus money, and they don’t understand why politicians are trying to push a $1.5 billion payroll tax that will make life even harder for Main Street businesses.

The .7% tax would cost the average small business with ten employees around $3,000 a year.

The alternative plan will be offered during Tuesday’s debate on House File 2.

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