This bill amends various sections of the Minnesota Statutes concerning the paid leave program, introducing significant changes to definitions and eligibility criteria for both employees and employers. A new definition for "small employer" is established, identifying such employers as those with 15 or fewer employees. Employees of small employers will not be automatically included in the paid leave program unless they choose to opt in. Additionally, the definition of "family member" is revised by removing siblings and including a designated individual who relies on the applicant for care. The benefit structure is also modified, limiting applicants to a maximum of 12 weeks of benefits per benefit year, with an extra two weeks available for serious health conditions related to pregnancy or childbirth.

The bill further revises provisions related to premium payments and benefits for self-employed individuals, eliminating the term "self-employed" in certain contexts and requiring those who opt for coverage to pay premiums through payroll deductions if their small employer does not provide coverage. The calculation of the weekly benefit for self-employed individuals will be based on their self-employment premium base. Additionally, the bill outlines a process for adjusting annual premium rates, allowing the commissioner to make adjustments based on historical data and actuarial principles, with a maximum annual premium rate revised from 1.2 to one, effective January 1, 2026. Various effective dates for these changes are specified, including immediate enactment for some provisions and others set for July 1, 2025, and November 1, 2025.

Statutes affected:
Introduction: 268B.01, 268B.04, 268B.10, 268B.11, 268B.14