SF4058

Purpose

This bill would change who is covered by Minnesota’s Paid Leave Law by adding specific exemptions for people who work in transportation-related jobs. It amends definitions that determine who counts as “covered employment” and who is an “employee,” so that many transportation workers could be excluded from paid leave requirements.

Main provisions

• Covered employment definition expanded to address where and how employees work:
  • An employee’s entire employment for a calendar year is considered, with a 50% rule about whether most work is done in Minnesota or elsewhere.
  • If 50% or more of the work is done in Minnesota (or if the employee lives in Minnesota for 50% or more of the year), it affects whether the work is considered covered.
• Exemptions from covered employment:
  • Self-employed individuals.
  • Independent contractors.
  • Seasonal employees.
  • Anyone in a position for which the U.S. Department of Transportation (DOT) can set qualifications and hours of service (under federal law 49 U.S.C. 31502).
  • Anyone employed by a business entity classified under SIC codes 421201 through 423102 (Motor Freight Transportation and Warehousing).
• Optional coverage for previously excluded entities:
  • Entities that are exempted may opt in to coverage following a procedure set by the commissioner.
  • If they opt in, the employees’ services are treated as covered employment.
• Rulemaking authority:
  • The commissioner can adopt rules to define how this subdivision applies.
  • The commissioner can set criteria for covered employment for employees who don’t meet the standard criteria but still work as employees for Minnesota employers.

Changes to existing law

• Alters the definition of covered employment and employee in Minnesota Statutes 2024 section 268B.01 to create federal transportation-related exemptions.
• Adds a pathway for certain transportation-related workers to be excluded from the paid leave requirements, and adds an opt-in option for some exempt entities.

Practical impact

• Transportation workers who fall into these exemptions (DOT-regulated positions, specific motor freight and warehousing employers, self-employed, independent contractors, or seasonal workers) may not be required to receive Minnesota Paid Leave.
• Employers in transportation sectors may have the option to opt into paid leave coverage for these workers, if they choose and follow the commissioner’s adopted procedures.

Note on terms used in the bill

• The bill repeatedly uses terms like “covered employment,” “employee,” “employer,” and “calendar year,” and ties coverage to location (Minnesota versus other states) and residency.
• It references federal transportation standards (DOT, 49 U.S.C. 31502) and industry classifications (SIC 421201-423102).

Relevant Terms - Minnesota 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 - Rulemaking - Minnesota Statutes 268B.01 - Calendar year - Minnesota residence - Wage or contract for services - Exemption criteria