This bill proposes modifications to the Minnesota Paid Leave Law by amending various sections of the Minnesota Statutes 2024. Below are the key changes it introduces:

1. Definition of Covered Employment (Sec. 1 - Minn. Stat. 268B.01, subd. 15)

   • Expands the definition of "covered employment" to include workers performing a majority of their work in Minnesota or residing in Minnesota for at least 50% of the year.
   • Excludes self-employed individuals, independent contractors, seasonal workers, and employees covered by a collective bargaining agreement (until the agreement is renewed with explicit inclusion).
   • Allows excluded entities to opt into coverage through a procedure determined by the commissioner.

2. Expanded Definition of Family Member (Sec. 2 - Minn. Stat. 268B.01, subd. 23)

   • Expands the definition of "family member" to include:
     • Domestic partners
     • De facto custodians
     • Stepchildren, stepparents, and legal guardians
     • Individuals with a personal relationship with the applicant that creates an expectation of unpaid caregiving.

3. Changes to the Definition of Seasonal Employees (Sec. 3 - Minn. Stat. 268B.01, subd. 35)

   • Increases the employment duration limit for seasonal employees from 150 days to 180 days in a consecutive 52-week period.
   • Restricts seasonal employee classification to hospitality workers whose employers meet a revenue-based threshold.
   • Requires employers to apply for seasonal employee classification and report any change in status within five business days.

4. Private Administration of Paid Leave Program (Sec. 4 - Minn. Stat. 268B.02, subd. 7)

   • Grants the commissioner the authority to contract with private entities to administer critical aspects of the paid leave program, including:
     • Processing benefit applications and determining eligibility.
     • Making payments to applicants.
     • Handling voluntary coverage elections for self-employed individuals and independent contractors.
     • Withholding taxes and child support from benefits.

5. Modification of Benefit Calculation for Paid Leave (Sec. 5 - Minn. Stat. 268B.04, subd. 3)

   • Adjusts how weekly benefits are calculated, including the percentage of wages replaced based on income level.
   • Prorates benefits for individuals who work while on leave or receive paid vacation, sick leave, or other paid time off.
   • Caps the maximum weekly benefit at the state's average weekly wage.

Summary:

This bill revises the Minnesota Paid Leave Law to clarify covered employment, expand family member eligibility, modify seasonal employment rules, authorize private administration of benefits, and adjust benefit calculations. If enacted, it would impact employers, employees, and self-employed individuals participating in the state's paid leave program.