Purpose

To change who is covered by Minnesota's Paid Leave Law by exempting individuals under 15 years old from the coverage, and to adjust how “covered employment” and “employee” are defined and applied under the law. The bill also allows certain groups that are currently excluded to opt in to coverage and directs rulemaking to clarify implementation.

Key definitions and scope

• Covered employment: Previously defined as the work arrangement in which an employee performs services for wages or under any contract, with specific rules for how a calendar year is counted based on where the work is done and the worker’s residence. The bill preserves these core ideas but ties coverage to year-long employment when most work is in Minnesota, or when most work is outside Minnesota but the worker lives in Minnesota for at least half the year.
• Employee: A person who performs services for an employer. This definition excludes federal employees, self-employed individuals, independent contractors, seasonal workers, and, under the bill, individuals under 15 years old.

Main Provisions

• Exemption for under-15 workers: Individuals younger than 15 are not considered covered by the Minnesota Paid Leave Law and are not counted as employees for purposes of the law.
• Coverage rules for employment: For purposes of determining coverage, an employee’s entire employment in a calendar year is considered covered if:
  • 50% or more of the work is performed in Minnesota, or
  • 50% or more of the work is not performed in Minnesota (and not in any single other state) but the employee’s residence is in Minnesota for 50% or more of the year.
• Exclusions from covered employment: Self-employed individuals, independent contractors, and seasonal employees (as defined elsewhere in the statute) are not covered. Individuals under 15 are not covered.
• Opt-in option for excluded entities: Entities that are currently excluded from coverage may choose to opt in to coverage following a process set by the commissioner; if they opt in, services provided by their employees become covered.
• Rulemaking authority: The commissioner may adopt rules to further define how these provisions apply and to establish coverage criteria for workers who don’t neatly meet the defined criteria but still work as employees for a Minnesota employer.

Significance and potential impacts

• Workforce protections: Expands or clarifies which workers are covered by paid leave protections, while explicitly removing very young workers (under 15) from coverage.
• Administrative changes: Adds a mechanism for opt-in coverage and directs agency rulemaking to fill gaps, potentially affecting how employers classify workers and plan leave benefits.
• Policy scope: Shifts some workers and circumstances out of coverage (young workers and certain types of workers), while allowing broader groups to voluntarily join coverage.

Clarifications and notes

• The bill retains and refines existing terminology (covered employment, employee) and introduces specific age-based exemptions.
• Rulemaking: The commissioner’s rulemaking may define the application of these provisions and determine coverage for workers who don’t fit the strict criteria but work as employees for Minnesota employers.

Relevant Terms - Minnesota Paid Leave Law - Covered employment - Employee - less than 15 years old - self-employed - independent contractor - seasonal employee - opt in - commissioner - rules (Minnesota Statutes Chapter 14) - calendar year - residence - wages - contract for services - master and servant (common law)