Purpose

• To modify who is covered by Minnesota’s Paid Leave Law for certain transportation occupations. The bill aims to exclude specified transportation-related workers from the law’s obligations, while allowing some entities to opt into coverage and giving the commissioner authority to define coverage further through rules.

Main Provisions

• Covered employment (new definition in 268B.01, subd.15):

  • Covered employment generally means an employee’s entire employment in a calendar year, with two ways this is measured:
  • 50% or more of the work is performed in Minnesota, or
  • 50% or more of the work is not performed in Minnesota or in any other single state or U.S. territory or foreign nation, but some work is done in Minnesota and the employee resides in Minnesota for 50% or more of the year.
  • Exclusions from covered employment include:
  • Self-employed individuals
  • Independent contractors (and employment by a seasonal employee as defined in the bill)
  • Any position where the U.S. Department of Transportation can set qualifications and maximum hours of service (under 49 U.S.C. 31502)
  • Any individual hired by a business entity that falls within SIC codes 421201 through 423102 (Motor Freight Transportation and Warehousing)
  • Some entities that are excluded may opt in to coverage through a process determined by the commissioner, in which case employees’ services are treated as covered employment.
  • The commissioner may adopt rules to further define coverage and establish criteria for those who don’t meet the criteria in the above paragraphs but still work as employees for a Minnesota employer.

• Employee definition (new in 268B.01, subd.17):

  • Employee means a person who performs services for an employer.
  • Exclusions from “employee” include:
  • Employees of the United States government
  • Self-employed individuals
  • Independent contractors
  • Seasonal employees (as defined in subdivision 35)
  • Individuals in positions subject to DOT qualifications and hours of service (49 U.S.C. 31502)
  • Individuals hired by a business entity that meets SIC 421201 through 423102 (Motor Freight Transportation and Warehousing)

Significant Changes to Existing Law

• Clarifies and narrows who is considered covered employment under the Minnesota Paid Leave Law by carving out broad categories of transportation-related workers (e.g., certain freight, warehousing, and DOT-regulated roles) from eligibility.
• Introduces an opt-in option for certain excluded entities to gain coverage, with coverage then applying to their employees.
• Enables the state to further define coverage through agency rules, including how to treat workers who don’t neatly fit the defined criteria but function as employees for Minnesota employers.
• Aligns eligibility with federal DOT rules and specific industry classifications (SIC 421201–423102), potentially reducing paid leave obligations for many transportation workers and related roles.

Definitions and Scope (Key Terms)

• Paid Leave Law (Minnesota)
• Covered employment
• Employee
• Self-employed
• Independent contractor
• Seasonal employee
• United States Department of Transportation (DOT)
• United States Code title 49 section 31502
• SIC codes 421201 through 423102 (Motor Freight Transportation and Warehousing)
• Opt in to coverage
• Commissioner (state official who administers the program)
• Rules under chapter 14

Administrative Provisions

• The commissioner may establish an opt-in process for entities currently excluded.
• The commissioner may adopt rules to further define covered employment and to address individuals who don’t meet the explicit criteria but are still employed by Minnesota employers.

Relevant Terms - Paid Leave Law - covered employment - employee - self-employed - independent contractor - seasonal employee - United States Department of Transportation (DOT) - 49 U.S.C. 31502 - SIC 421201 through 423102 - Motor Freight Transportation and Warehousing - opt in to coverage - commissioner - rules - Minnesota Statutes 2024 section 268B.01 - subdivision 15 - subdivision 17