SF3885 (Legislative Session 94 (2025-2026))
Valid work authorization requirement to receive benefits under the Minnesota Paid Leave Law
Related bill: HF3573
AI Generated Summary
Purpose
This bill tightens who can receive paid leave benefits under Minnesota’s Paid Leave Law by requiring valid work authorization. It updates definitions and eligibility rules so that only individuals with valid work authorization can access benefits, and it sets new financial thresholds and administrative steps for establishing paid leave benefit accounts.
Main provisions
Covered employment (Sec. 1)
- Defines covered employment as any work performed for wages or under a contract, regardless of the legal employment relationship.
- Establishes how to determine if employment is covered within a calendar year (based on where the work is done and the employee’s residence).
- Excludes certain groups from covered employment, including self-employed individuals, independent contractors, seasonal workers, and anyone without valid work authorization.
- Allows certain excluded entities to opt in to coverage through a process determined by the commissioner, in which case employees’ services would be treated as covered employment.
Covered individual (Sec. 2)
- Defines a covered individual as someone who meets the financial eligibility requirements for benefits and, if applicable, is a self-employed individual or independent contractor who has elected coverage.
- Requires the individual to have valid work authorization to be considered a covered individual.
Employee definition (Sec. 3)
- Defines an employee as someone who performs services for an employer.
- Confirms exceptions: federal employees, self-employed individuals, independent contractors, seasonal employees, and anyone without valid work authorization are not considered employees under this law.
Benefit account requirements (Sec. 4)
- To establish a benefit account, an applicant must have wage credits of at least 5.3% of Minnesota’s state average annual wage, rounded down to the next lower 100, and must have valid work authorization.
Ineligibility for benefits (Sec. 5)
- Clarifies when an applicant is not eligible for family or medical leave benefits, including situations where the applicant lacks valid work authorization, does not provide required eligibility information, is incarcerated, is receiving or has received unemployment benefits, or has other specified disqualifications.
Significant changes to existing law
- Eligibility tightened to require valid work authorization for receipt of paid leave benefits.
- New definitions for “covered employment,” “covered individual,” and “employee” that align who can participate in the program with work authorization status.
- Introduction of a wage-credit threshold (5.3% of the state’s average annual wage) needed to establish a benefit account.
- Potential for previously excluded employers or entities to opt in to coverage through a commissioner-defined process.
- Expanded rulemaking authority for the commissioner to further define these concepts and how they apply to individuals who do not meet standard criteria but perform services as employees to a Minnesota employer.
- Revisions apply to the Minnesota Paid Leave Law (as referenced by sections of Minnesota Statutes 2024 268B).
Implementation notes
- Administrative rules: The commissioner may adopt rules to further define covered employment, covered individuals, and related eligibility criteria.
- Financial eligibility: The bill links benefit eligibility to a specific wage-credit threshold tied to the state’s average wage, adding a quantitative bar to participation.
- Compliance and enforcement: The ineligibility provisions outline specific circumstances under which a claim for family or medical leave benefits would be denied, including lack of valid work authorization or failure to provide required information.
Overall impact
- The bill narrows access to paid leave benefits to individuals with valid work authorization, potentially reducing benefits for certain non-authorized workers.
- It introduces stricter definitions and a new financial threshold for establishing benefit accounts.
- It creates a pathway for some previously excluded employers to opt into the program, extending coverage in limited circumstances.
Relevant terms
- paid leave
- valid work authorization
- Minnesota Paid Leave Law
- covered employment
- covered individual
- employee
- self-employed
- independent contractor
- seasonal employee
- benefit account
- wage credits
- state’s average annual wage
- financial eligibility
- unemployment insurance benefits
- eligibility information
- commissioner
- rules (chapter 14)
- family or medical leave benefits
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 26, 2026 | Senate | Action | Introduction and first reading | ||
| February 26, 2026 | Senate | Action | Referred to | Jobs and Economic Development |
Citations
[
{
"analysis": {
"added": [
"Clarifies that covered employment is defined by specific criteria related to where and how services are performed.",
"Adds explicit exclusion for employment without valid work authorization.",
"Creates an opt-in mechanism for entities that are excluded under this section to gain coverage."
],
"removed": [],
"summary": "Amends the covered employment definition to specify criteria for coverage and to exclude certain employment types, including employment without valid work authorization, with a provision for opt-in coverage for currently excluded entities.",
"modified": [
"Revises the definition of covered employment to incorporate work authorization status and related eligibility conditions."
]
},
"citation": "268B.01",
"subdivision": "15"
},
{
"analysis": {
"added": [
"Establishes that a covered individual can be a self-employed or independent contractor who has elected coverage under 268B.11 and meets the financial eligibility under 268B.11, in addition to those meeting 268B.04 subdivision 2 for covered employment under subdivision 15."
],
"removed": [],
"summary": "Defines the covered individual and links eligibility to other provisions, enabling self-employed or independent contractors who elect coverage to be treated as covered individuals.",
"modified": [
"Sets conditional eligibility for covered individuals through cross-references to 268B.04 subdivision 2 and 268B.11."
]
},
"citation": "268B.01",
"subdivision": "15a"
},
{
"analysis": {
"added": [
"Explicitly states exclusions from the employee definition (e.g., U.S. government employees, self-employed individuals, independent contractors, seasonal employees, and those without valid work authorization)."
],
"removed": [],
"summary": "Clarifies the definition of Employee and who is excluded from that definition, including exclusions based on federal status, self-employment, independent contracting, seasonal status, and valid work authorization.",
"modified": [
"Modifies the scope of who is considered an employee under the act by delineating exclusions."
]
},
"citation": "268B.01",
"subdivision": "17"
},
{
"analysis": {
"added": [
"Requires wage credits of at least 5.3 percent of the state's average annual wage (rounded down to the next lower 100) and a valid work authorization to establish a benefit account."
],
"removed": [],
"summary": "Adds benefit account requirements, including a wage credit threshold and the necessity of valid work authorization.",
"modified": [
"Introduces a work authorization condition to establish a benefit account, tying eligibility to both wage credits and legal work status."
]
},
"citation": "268B.04",
"subdivision": "2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Sets not eligible criteria for family or medical leave benefits, enumerating several grounds for ineligibility, including lack of valid work authorization.",
"modified": [
"Adds explicit ineligibility grounds, including absence of valid work authorization and other predefined conditions."
]
},
"citation": "268B.06",
"subdivision": "4"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Sec. 5 references 268B.07 subdivision 2; the bill relies on existing provisions for eligibility determinations in this area.",
"modified": [
"Cross-referential inclusion to 268B.07 subd. 2; no substantive change shown for 268B.07 within the excerpt."
]
},
"citation": "268B.07",
"subdivision": "2"
},
{
"analysis": {
"added": [
"Enables election of coverage for self-employed individuals or independent contractors under 268B.11."
],
"removed": [],
"summary": "Provides mechanism for self-employed individuals and independent contractors to elect coverage under 268B.11, linking to eligibility for covered individuals under 268B.04 and 268B.01(15a).",
"modified": [
"Connects coverage elections under 268B.11 to overall eligibility framework for covered individuals."
]
},
"citation": "268B.11",
"subdivision": ""
},
{
"analysis": {
"added": [
"Authorizes the commissioner to adopt rules under Chapter 14 to further define application of these provisions."
],
"removed": [],
"summary": "Authorizes rulemaking related to the provisions of the Minnesota Paid Leave Law, in accordance with Chapter 14.",
"modified": [
"Adds rulemaking authority consistent with Chapter 14 for implementing the amendments."
]
},
"citation": "chapter 14",
"subdivision": ""
}
]Progress through the legislative process
In Committee