SF4817

Purpose

• The bill makes the paid family and medical leave program optional for both employers and employees in Minnesota.

Main Provisions

• Employers may opt out of the paid family and medical leave program and the employer responsibilities under Minnesota Statutes chapter 268B by notifying the commissioner of employment and economic development using a form designed by the commissioner.
• An employer may change their decision to participate in the program no more than once every 12 months.
• Employees of employers who opt out may participate in the program as if they were self-employed individuals under section 268B.11.
• Every employee may opt out of participation in the program by notifying their employer and the commissioner using a form designed by the commissioner.
• An employee may change their decision to participate in the program no more than once every 12 months.

Changes to Existing Law

• The bill shifts from a mandatory participation model to an opt-out model for both employers and employees.
• It creates a formal opt-out process requiring notification to the commissioner and, for employees, to both the employer and the commissioner.
• It allows employees in opt-out situations to participate as self-employed individuals under existing provisions (268B.11).

Practical Implications

• Employers gain the option to discontinue participation in the paid leave program, potentially reducing employer obligations and funding requirements under the program.
• Employees can choose to participate or not, even if their employer opts out, with the possibility to participate as if self-employed in certain circumstances.
• The process relies on forms designed by the commissioner, creating a standardized method for opting out and for changing decisions (limited to once per year).

Terminology from the Bill

• paid family and medical leave program
• opt out
• notify the commissioner
• form designed by the commissioner
• self-employed (under section 268B.11)
• Minnesota Statutes chapter 268B (268B.001 to 268B.30)
• employer
• employee
• once every 12 months

How to Interpret the Bill’s Effects

• The bill proposes a major change in how the paid family and medical leave program is administered, giving both employers and employees the right to opt out, subject to annual limits on changing decisions.
• In opt-out situations, employees may still access the program through a self-employed pathway, preserving some benefits of coverage even if the employer withdraws from participation.

Relevant Terms paid family and medical leave program, opt out, notify the commissioner, form designed by the commissioner, self-employed, Minnesota Statutes chapter 268B, 268B.11, 268B.001 to 268B.30, employer, employee, once every 12 months