This bill proposes the repeal of the Minnesota Paid Leave Law, specifically targeting sections 268B.001 through 268B.30, which govern family and medical leave in the state. The legislation mandates that any unspent funds from the family medical leave account be transferred back to the general fund, with this transfer taking effect on July 1, 2025. This repeal signifies a significant shift in Minnesota's approach to paid leave, eliminating state-sponsored family and medical leave benefits and potentially impacting employees who rely on these provisions.

In place of the repealed law, the bill establishes a new Family and Medical Benefit Insurance Program, which will be administered by a newly created division within the department. It outlines definitions related to medical care and eligibility requirements for benefits, including the establishment of a benefit account and the calculation of benefits based on average weekly wages. The bill also introduces amendments to streamline the application process, clarify rights and responsibilities, and ensure employee protections, including reinstatement rights after leave. Additionally, it sets forth guidelines for private plans, premium payments, and the collection of overpaid benefits, aiming to enhance the integrity and administration of the family and medical leave benefits system.