This bill amends Minnesota's paid family and medical leave insurance program by updating definitions, fixing premium rates, and adjusting the maximum length of benefits. Key changes include the repeal of the administrative authority to adjust premium rates, the introduction of new notice requirements for employees returning from leave, and modifications to reinstatement requirements. The maximum length of benefits is established at 12 weeks, with an additional two weeks available for leave related to pregnancy complications. The bill also allows certain small employers to voluntarily participate in the program and clarifies definitions related to "covered employment," "employee," and "employer," specifically excluding small employers that do not elect to provide coverage.

Additionally, the bill outlines new notice requirements for both foreseeable and unforeseeable leave, including penalties for employees who fail to provide the required notice. It introduces provisions for bonding leave, reinstatement rights for employees returning from leave, and ensures that employees are restored to equivalent positions with the same pay and benefits. The bill also addresses the treatment of employees on leave concerning pension and retirement plans, establishes limitations on reinstatement rights, and sets a formula for adjusting annual premium rates for the benefit programs, ensuring they do not exceed 1.2 percent of taxable wages paid to each employee. Overall, these changes aim to enhance the structure and accessibility of the paid family and medical leave program in Minnesota.