HF3499

Purpose

This bill changes who is covered by Minnesota’s Paid Leave Law, specifically exempting paid on-call firefighters from the law’s protections. It also creates a path for some previously excluded employers to opt into coverage and gives the state commissioner authority to set further rules about who counts as covered employment and who is considered an employee.

Main Provisions

• Covered employment definitions:
  • Covered employment means performing services of any kind for wages or under a contract, without regard to traditional master/servant relationships.
  • For purposes of the law, a worker is considered to have all of their employment during the year if most of their work occurs in Minnesota, or if most work occurs outside Minnesota (in many states or territories) but the worker lives in Minnesota for most of the year.
• Exclusions from covered employment:
  • Self-employed individuals.
  • Independent contractors.
  • Seasonal employees.
  • Paid on-call firefighters.
• Optional coverage (opt-in):
  • Entities that are currently excluded may choose to opt into coverage following a procedure set by the commissioner. If they opt in, the services of their employees become covered employment.
• Rulemaking authority:
  • The commissioner may adopt rules to define how this subdivision applies and to establish criteria for covered employment for workers who don’t meet the standard criteria but are still employees of a Minnesota employer.
• Employee definitions (Sec. 2):
  • Employee is someone who performs services for an employer.
  • Employees do not include: U.S. government employees, self-employed individuals, independent contractors, seasonal employees, or paid on-call firefighters.

Significant Changes to Existing Law

• Paid on-call firefighters are explicitly removed from being considered employees under the Minnesota Paid Leave Law.
• Paid on-call firefighter work is no longer automatically counted as covered employment unless the employer opts in.
• An opt-in mechanism is created for certain employers who want to provide paid leave coverage to their employees.
• The commissioner gains expanded rulemaking authority to clarify who is covered and how coverage applies to edge cases.

Implications to Note

• Firefighters who are paid on-call may not receive paid leave protections unless their employer chooses to opt in to coverage.
• Employers can decide to extend paid leave protections by opting in.
• Coverage status for workers may vary based on location of work, employer status, and opt-in decisions, as well as future rules.

Relevant Terms - Covered employment - Employee - Paid on-call firefighter - Minnesota Paid Leave Law - Minnesota Statutes 2024 section 268B.01 subdivisions 15 and 17 - Opt in to coverage - Rulemaking (chapter 14) - Self-employed - Independent contractor - Seasonal employee