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Council approves Minnesota paid-leave coverage; city to pay 50% of employer share
Summary
Council approved a private insurance option for Minnesota paid-leave coverage starting Jan. 1, 2026; staff said the private rate is 1.78 (the state's number is 0.88) and estimated the city's 50% employer share at $3,670.26 (subject to payroll fluctuations).
The City of Montrose voted to approve paid-leave coverage for employees under Minnesota’s new paid-leave requirements, effective Jan. 1, 2026.
Staff presented a private-coverage quote with a rate of 1.78 versus the state-offered 0.88, and said the city's chosen plan had been submitted to and approved by the state. Staff said the city will pay 50% of the employer share; the estimated city cost presented was $3,670.26 and may fluctuate with payroll changes. A council member asked whether this satisfied new state requirements; staff confirmed it did, and the motion to approve the paid-leave insurance quote passed unanimously.
The policy as described in the packet covers council, firefighters and staff, and administration will proceed to implement the coverage under the approved quote.
