Purpose

• The bill would exempt paid on-call firefighters from the Minnesota Paid Leave Law by changing who is considered “covered employment” and who is an “employee” under the Minnesota Paid Leave Law.

What the bill changes

• Amends Minnesota Statutes 2024 section 268B.01 (subdivision 15) to redefine covered employment and exclude certain groups from it, including paid on-call firefighters.
• Adds an option for entities that are excluded from coverage to opt in to coverage through a procedure set by the commissioner.
• Allows the commissioner to adopt rules to further define how covered employment applies, and to set criteria for individuals who don’t meet the standard criteria but still work as employees for a Minnesota employer.
• Amends Minnesota Statutes 2024 section 268B.01 (subdivision 17) to define who counts as an employee, and explicitly excludes paid on-call firefighters, seasonal employees, self-employed individuals, and independent contractors.

Main provisions and how they work

• Covered employment (subdivision 15):
  • Covered employment is generally the employee’s entire employment for a calendar year, with rules about where the work is performed (Minnesota vs. other places) and where the employee resides.
  • Exclusions from covered employment: self-employed individuals, independent contractors, and employment by a seasonal employee; and specifically, employment as a paid on-call firefighter.
  • Some excluded entities can opt into coverage later if the commissioner allows.
  • The commissioner can issue rules to clarify who is covered and how the criteria apply, including cases that don’t fit the typical in-state/out-of-state framework but involve work for a Minnesota employer.
• Employee (subdivision 17):
  • Defines an employee as someone who performs services for an employer.
  • Explicit exclusions: employees of the United States government, self-employed individuals, independent contractors, seasonal employees, and paid on-call firefighters.

Significant changes and potential impact

• Firefighters who are paid on-call would not be considered “covered employment” under the Minnesota Paid Leave Law, reducing or removing their eligibility for benefits under that law.
• The bill creates a pathway for excluded entities to opt in to coverage, which could expand coverage if chosen.
• The changes provide the commissioner with authority to issue further rules about who is covered, potentially broadening or narrowing the scope over time.
• Overall effect: Narrowing of paid leave coverage for paid on-call firefighters, with potential flexibility for other groups to join coverage through future rules or opt-in decisions.

Compliance and implementation notes

• Rules and procedures for the opt-in process would be established by the commissioner under existing rulemaking authority (chapter 14).
• The definitions of covered employment and employee determine who is subject to the Minnesota Paid Leave Law; changes affect eligibility for paid leave benefits.

Relevant Terms - Minnesota Paid Leave Law - Covered employment - Employee - Paid on-call firefighter - Self-employed - Independent contractor - Seasonal employee - Opt in to coverage - Commissioner - Rules (chapter 14) - Minnesota residence - Calendar year - Minnesota employer