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GOP leaders say paid family and medical leave structure will be reviewed after employer concerns
Summary
Republican leaders said Minnesota's Paid Family and Medical Leave program will be reconsidered amid business, school district and hospital concerns that the structure and employer tax could cause workforce strain.
At the same press event, Speaker Damoth and House Republican leaders said Minnesota’s Paid Family and Medical Leave program is a candidate for revision after stakeholders raised concerns about its structure and cost.
“We definitely have to look at the way that paid family medical leave is structured right now,” Speaker Damoth said. He said businesses, school districts and hospitals have reported the program “is not gonna be sustainable” and that the program “hasn't even started and it's already had to have additional money infused.”
Speakers noted the program’s employer assessment applies even to very small employers: “If you have 1 employee, you're on the hook for this program,” Speaker Damoth said, and raised the possibility that the tax could be passed on to employees.
House Republicans said staff and caucus teams are developing proposed changes. “We are looking for meaningful adjustments to that paid family medical leave as we move forward. We've got a great team within our caucus working on that,” Speaker Damoth said, and added, “you will see those proposals, rolling through as we move forward.”
Speakers characterized the program as potentially contributing to workforce shortages and business strain if left unchanged. They did not provide specific statutory changes or draft bill language at the press conference, nor did they identify a timeline for submitting proposed legislation.
