Legislation that would delay the implementation of the state Paid Family and Medical Leave (PFML) law was advanced on a party-line vote in the Ways and Means Committee of the Minnesota House of Representatives on Monday.
In 2023, Democrats in control of state government authorized a new law establishing paid family and medical leave for every worker in the state. Starting Jan. 1, 2026, employees are allowed to take up to 12 weeks of paid leave every year for the purposes of taking care of themselves or a family member.
The program, which is run by the Minnesota Department of Employment and Economic Development (DEED), is funded through increases in payroll taxes that are split between employers and workers.
If someone takes a combination of family and personal medical leave during the year, paid leave is capped at 20 weeks total. When an employee returns from leave, the business is required to restore that individual to the same or similar position.
When PFML was moving through the Minnesota Legislature in 2023, small business owners and pro-business associations voiced their opposition to the proposed law.
After PFML became state law, a representative from Minnesota’s chapter of the National Federation of Independent Business (NFIB) said “the PFML mandate is a deeply flawed proposal that will cost much more than expected and make it harder for small businesses to keep their doors open.”
The NFIB representative further charged state legislators with failing to address “the fundamental question of how small employers are supposed to staff their business when every employee can take up to five months off per year for a wide range of reasons.”d
Last month, DEED announced that the program will launch with a 0.88% payroll tax rate. Rep. Dave Baker, R-Willmar, said in a statement that this figure is “25% higher—roughly $350 million more—than the rate approved in the 2023 enacting legislation.”
At a Monday meeting of the Ways and Means Committee, state lawmakers considered HF 11. Authored by Rep. Baker, HF 11 would delay the start of the paid leave law by a year, thus preventing the program from operating until Jan. 1, 2027.
After some initial confusion about an amendment that was later withdrawn, the committee discussed the bill itself.
Baker said HF 11 is not a repeal of PFML, but a pause. The Willmar lawmaker said businesses and job creators were not heard, and the pause will allow the Minnesota Legislature to “get it right.”
“We have to make sure it does not leave the train station in a way that will crush small businesses,” said Baker, noting that school districts have also raised concerns about the program.
“Teachers will lose their jobs if we don’t get this right because school districts around the state of Minnesota don’t know how this is going to work,” he commented.
The GOP lawmaker said he was not convinced the PFML program would be ready to launch and state agencies have previously said programs were ready to go when they were not. Baker also stated that the program would fail because of how it was written.
“Other states don’t have it where it goes down to one employee,” said Baker. “Most of them have a small business exemption. Most of them have other parameters for seasonal businesses that are better than ours.”
Nevertheless, Baker told the committee he is committed to hearing ideas that will make the program work in a way that is beneficial for both employees and employers.
Meanwhile, Democrats argued that PFML did not need to be delayed, small businesses are supportive of the law, HF 11 does not have the votes necessary to pass the House, and HF 11 was rushed and is not ready to be heard on the floor.
Additionally, DEED Deputy Commissioner Evan Rowe told the committee that DEED is confident the program will be ready to start on Jan. 1, 2026.
Twice during the meeting, Democrats attempted to move the bill to another committee for further work. However, those motions were defeated in partisan votes. Baker previously indicated that there is still time to adjust his bill as necessary before a full vote by the House.
Following discussion, the committee voted 14-12 to advance HF 11 and place it on the General Register. The vote was divided along party lines with Republicans voting to advance the bill while Democrats voted against advancement.
Since the bill was sent to the General Register of the Minnesota House of Representatives, Republicans can schedule HF 11 for a full vote on the House floor at any time.
Luke Sprinkel
Luke Sprinkel previously worked as a Legislative Assistant at the Minnesota House of Representatives. He grew up as a Missionary Kid (MK) living in England, Thailand, Tanzania, and the Middle East. Luke graduated from Regent University in 2018.
