Start date for Minnesota’s paid leave law now up for debate

Minnesota is little less than a year away from launching its paid-leave law, but state lawmakers are debating whether to delay the start until 2027.

Paid leave was considered one of the crowning achievements of the 2023 legislative session, when Democrats controlled both chambers. But the GOP now has a slight edge in the House, so the policy is getting a second look.

Employers will be required to provide up to 20 weeks of paid time off each year to a worker dealing with a health issue, or caring for a loved one. During committee debate Thursday, Minnesota AFL-CIO president Bernie Burnham argued against pushing things back.

“Working Minnesotans are ready for the peace of mind that comes from knowing we will have the freedom to care for ourselves, and the people we love, without sacrificing a paycheck,” he said.

Supporters of the later start date have said there’s still uncertainty about the impact on businesses, especially smaller companies, as they prepare to comply. Others testified there aren’t enough safeguards in place yet for the state to smoothly roll out the program. But Burnham said the effort has been vetted, and any kinks can be sorted out after the currently scheduled launch of January 2026.

Some voices in the education field testified in support of the bill calling for a one-year delay. Kim Lewis, associate director of government relations for the Minnesota School Boards Association, said the timing isn’t good for school districts around the state.

“A significant number of the 331 districts are currently making staffing cuts to balance budgets,” she said. “No one wants to do that, but the increased costs and the increased needs are a reality. Our biggest issue and question is, how do we pay for the paid leave benefit?”

But the Minnesota Association of Professional Employees, which represents more than 18-thousand state workers, has said not only would this halt a critical benefit they’ve fought for over the past decade, but also result in additional administrative costs for the state.

Minnesota set aside funds to help cover the program’s launch. After that, benefits would be funded by payroll taxes shared by employers and workers.