SF4828

Purpose

• To exempt individuals who are less than 15 years old from the Minnesota Paid Leave Law and to clarify who counts as covered employment and who is considered an employee for purposes of that law.

Main Provisions

• Covered employment (definition changes)
  • Broad idea: "Covered employment" means work performed for wages or under a contract, regardless of the relationship type, for purposes of the paid leave law.
  • Determination across a calendar year includes location of work and the employee’s residence.
  • A worker’s entire calendar-year employment can be considered covered if:
  • 50% or more of the work during the year is performed in Minnesota; or
  • 50% or more of the work is not performed in Minnesota (or in any single state or nation), but some work is performed in Minnesota and the employee’s residence is in Minnesota for 50% or more of the year.
  • Exclusions from covered employment include:
  • Self-employed individuals
  • Independent contractors
  • Seasonal employees (as defined elsewhere in the statute)
  • Entities that are excluded can opt in to coverage following a procedure set by the commissioner; if they opt in, their employees’ services are treated as covered employment.
  • The commissioner may create rules to further define these criteria and to set coverage rules for workers who don’t meet the exact criteria but work as employees for Minnesota employers.
• Employee (definition changes)
  • An “employee” is someone who performs services of any kind for an employer.
  • Exclusions from “employee” include:
  • Employees of the United States government
  • Self-employed individuals
  • Independent contractors
  • Seasonal employees
  • Individuals under 15 years old

Significant Changes and Implications

• Explicit exemption for under-15 individuals: People younger than 15 are not covered by the Minnesota Paid Leave Law under this bill.
• Revised coverage rules: The bill refines how “covered employment” and “employee” are defined, tying coverage to where work is performed, where the worker lives, and the year-by-year distribution of work.
• Optional coverage for some excluded groups: Even if a group is normally excluded, a process exists for them to opt in to coverage, with rules to be set by the commissioner.
• Regulatory authority: The commissioner is given authority to adopt rules to apply these definitions and to determine coverage for workers who don’t fit neatly into the criteria.

Potential Impacts to Consider

• Employers: Need to assess whether workers fall under covered employment and how the under-15 exemption affects eligibility for paid leave benefits.
• Young workers: Those under 15 would not be covered by the paid leave law under this bill.
• Compliance and administration: Businesses may need to review residency, multi-state work patterns, and any opt-in arrangements to ensure proper application of the law.

Relevant Terms - covered employment - employee - Minnesota Paid Leave Law - calendar year - 50 percent - Minnesota - residence - self-employed - independent contractor - seasonal employee - under 15 years old - opt in - commissioner - rules - Minnesota employer - pay leave coverage