Friends and neighbors,

If you run a small business, you have a lot of responsibilities to the communities you serve and the people you employ. From balancing the challenges of your competitors to facing inflation and supply chain challenges, small businesses balance a lot to stay successful. However, even if you are successful in operating a small business, Minnesota would like you to do even more.

This session, Democrats passed two new mandates–paid family and medical leave and earned sick and safe time–that will make it even more difficult to do business in Minnesota. When I have been out in the community recently, I have heard from a number of constituents who are unsure of how these mandates differ. That is why I would like to clarify the specifics of each.

The new paid family and medical leave law will go into effect on January 1, 2026. Minnesota workers will then be eligible for 12 weeks of paid leave for serious health conditions and up to 12 weeks for bonding with a new child, family care or a qualifying emergency. It is important to note that this benefit is capped at no more than 20 weeks in one year.

Further, this new law creates a massive state entity to oversee the paid family and medical leave program, requiring the state to hire more than 400 additional full-time employees. To pay for this benefit, this law creates a new payroll tax that will take over a billion dollars out of the pockets of Minnesota employers and employees every year.

Specifically, when the program goes into effect, employers will begin paying state premiums for the leave, which is 0.7%. Employers may deduct up to half (0.35%) of this premium from employee paychecks. The maximum the premium can be under the law is 1.2%, although the increase is only made if the program isn’t actuarily sound.

I strongly support expanding access to paid family and medical leave. However, more government bureaucracy, at the expense of hard-working Minnesota taxpayers, is absolutely the wrong approach. I see this as a burdensome new mandate that will impact small businesses disproportionately. Minnesota workers and businesses should have the flexibility to tailor this benefit to their unique needs. That is exactly why my Republican colleagues and I advocated for a private market approach that would not force inequitable mandates on employers.

Additionally, a new law passed this session mandates businesses to provide paid time off to their employees if they get sick or have a sick loved one they must care for. This legislation requires every Minnesota employer, with one or more employees, to offer their employees a minimum of one hour of ‘earned sick and safe time’ for every 30 hours worked. This means that businesses will not be alone in bearing these new responsibilities. The burdens will apply to farms, non-profits and local government too.

I know that our small businesses want to provide their employees with the flexibility they need when they are sick or have a loved one who is ill. With a nearly $18 billion surplus, we had the opportunity to provide support to Minnesota employers and ensure they can afford this benefit. However, this law includes zero financial help for small businesses, and if they do not comply, they face a fine of $10,000 per employee.

At the end of the day, we should be passing policies that support our Minnesota businesses. Democrats, however, chose to favor paid leave mandates that turn a blind eye to the unique needs of our small businesses.

Contact me:

If you have any questions about any of these issues or any other issue the legislature is working on, please don’t hesitate to contact me any time. My email is Sen.Rich.Draheim@Senate.mn, and my phone number is 651-296-5558. 

And please follow me on Facebook here: https://www.facebook.com/SenatorRichDraheim/

It is a privilege to serve you.

Rich