An Update from Chamber President Brad Gruhot
At an alarming rate, legislation at the Capitol is cruising through both the House and the Senate. One of the bills that Chambers of Commerce statewide that has our attention is Minnesota House File 2 and Senate File 2 which is the Mandatory Paid Leave Program.
Under the current legislative proposals, ALL employers regardless of employee size and regardless if they are of non-profit status, would be required to allow for up to 24 weeks of paid time off per year. The breakdown of that would be 12 weeks of paid medical leave and 12 weeks of paid family leave. This legislation drastically exceeds most benefit packages and provides an incentive for fraudulent claims. If this gets signed into law, businesses have to comply unless they have a package that resembles the new law where they can opt out for $100.
Businesses are working hard at offering incentives for their employees including offering their own leave programs. For the most part, I don’t think businesses have an issue with leave programs but they don’t want another mandate put on them. In addition, payroll taxes will go up to pay for this program plus another form of a government agency to oversee the program.
Put yourself in the shoes of a small business owner who risks everything they own to try and realize the American dream by borrowing their life savings to open a shop. Under this bill, their entire workforce of two, three or four people on Main Street could all walk out the door with no or little notice and then be paid to not work for months and months. Any questions from the employer and it’s a fine of $10,000 or more. This undoubtedly will be abused.
Two weeks ago today, I went to the State Capitol along with other Chamber Executives statewide to advocate against this. Sadly, during committee meetings, no amendments are even being listened to. In fact, there wasn’t even a fiscal note attached to the legislation so as of our visit on February 2nd, there wasn’t even a cost noted for the program.
This legislation is now in the Senate. Senator Gary Dahms, who represents this area, is against this legislation. It’s not too late for you to make a call or send an email to Senate leadership. Unfortunately, many email addresses aren’t accessible but there is a website that you can go to here.
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