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Superintendent warns paid family medical leave will raise district costs; district to use private vendor
Summary
Superintendent Sulphurs briefed trustees on Minnesota's paid family medical leave starting Jan. 1, explained district choice to use an approved private insurer rather than the state, and cautioned about increased substitute costs (about $450,000 last year) and an estimated employer tax share of ~0.44% (~$90,000).
Superintendent Miss Sulphurs told the board that Minnesota's paid family medical leave (PFML) program begins Jan. 1 and that the district will contract with an approved private insurer — not the state program — to administer benefits.
"We are not participating in the state program. We are going with a private insurer," Sulphurs said, explaining the district's concern that the state program may lack bandwidth to provide personalized support for staff claims and that an approved vendor would work directly with Stewartville employees.
She reviewed key policy parameters described by state guidance: benefits will be a percentage of the state average weekly wage (SAWW) with higher replacement for lower earners (90% for earners below 50% of SAWW, 66% for those between 50% and 100%, and 55% above 100%), the maximum weekly benefit for the coming year is $1,423, and employees may access up to 20 weeks of leave combined (family and medical provisions capped at 20 weeks total).
Sulphurs also warned of local operational impact: the district paid more than $450,000 for substitutes in 2024—25 and expects substitute costs to rise as employees use leave. She estimated the district employer payroll-tax contribution at about 0.44% of wages (roughly $90,000 annually), noting the program is an unfunded mandate with no additional state aid to offset district costs.
Board members asked about topping off leave with existing paid time off and the potential for interactions with short-term disability; Sulphurs said those situations are administratively manageable but can create complexities.
What happens next: The district will finalize the contract with the approved private vendor, notify employees by Dec. 1 of the program details and publish an HR web page and handbook materials by Jan. 1 to guide staff through the application process.
