A bill for an act
relating to employment; modifying paid family and medical leave insurance;
modifying definitions; fixing the premium rates and amount of benefits; repealing
administrative authority to adjust the premium rates; amending the maximum
length of benefits; adding certain notice requirements; modifying reinstatement
requirements; authorizing certain small employers to voluntarily participate in the
paid family and medical leave insurance program; amending Minnesota Statutes
2023 Supplement, sections 181.942; 268B.01, subdivisions 15, 17, 18, 23, 35;
268B.04, subdivision 1, by adding subdivisions; 268B.07, subdivision 2; 268B.085;
268B.09, by adding a subdivision; 268B.11; 268B.14, subdivision 6; 268B.18;
Laws 2023, chapter 59, article 1, section 41; repealing Minnesota Statutes 2023
Supplement, sections 268B.04, subdivision 5; 268B.09, subdivisions 6, 7; 268B.14,
subdivision 7.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2023 Supplement, section 181.942, is amended to read:

181.942 REINSTATEMENT AFTER LEAVE.

Subdivision 1.

Comparable position.

(a) An employee returning from a leave of absence
under deleted text begin sectiondeleted text end new text begin sectionsnew text end 181.939 deleted text begin ordeleted text end new text begin tonew text end 181.941new text begin or chapter 268Bnew text end is entitled to return to
employment in the employee's former position or in a position of comparable duties, number
of hours, and pay. An employee returning from a leave of absence longer than one month
must notify a supervisor at least two weeks prior to return from leave. An employee returning
from a leave under section 181.9412 or sections 181.9445 to 181.9448 is entitled to return
to employment in the employee's former position.

(b) If, during a leave under sections 181.939 to 181.944new text begin or chapter 268Bnew text end , the employer
experiences a layoff and the employee would have lost a position had the employee not
been on leave, pursuant to the good faith operation of a bona fide layoff and recall system,
including a system under a collective bargaining agreement, the employee is not entitled to
reinstatement in the former or comparable position. In such circumstances, the employee
retains all rights under the layoff and recall system, including a system under a collective
bargaining agreement, as if the employee had not taken the leave.

Subd. 2.

Pay; benefits; on return.

An employee returning from a leave of absence
under sections 181.939 to 181.944 new text begin or chapter 268B new text end is entitled to return to employment at
the same rate of pay the employee had been receiving when the leave commenced, plus any
automatic adjustments in the employee's pay scale that occurred during leave period. The
employee returning from a leave is entitled to retain all accrued preleave benefits of
employment and seniority, as if there had been no interruption in service; provided that
nothing in sections 181.939 to 181.944new text begin or chapter 268Bnew text end prevents the accrual of benefits or
seniority during the leave pursuant to a collective bargaining or other agreement between
the employer and employees.

Subd. 3.

Part-time return.

An employee, by agreement with the employer, may return
to work part time during the leave period without forfeiting the right to return to employment
at the end of the leave period, as provided in sections 181.939 to 181.944new text begin or chapter 268Bnew text end .

Sec. 2.

Minnesota Statutes 2023 Supplement, section 268B.01, subdivision 15, is amended
to read:

Subd. 15.

Covered employment.

(a) "Covered employment" means performing services
of whatever nature, unlimited by the relationship of master and servant as known to the
common law, or any other legal relationship performed for wages or under any contract
calling for the performance of services, written or oral, express or implied.

(b) For the purposes of this chapter, covered employment means an employee's entire
employment during a calendar year if:

(1) 50 percent or more of the employment during the calendar year is performed in
Minnesota;

(2) 50 percent or more of the employment during the calendar year is not performed in
Minnesota or any other state, or Canada, but some of the employment is performed in
Minnesota and the employee's residence is in Minnesota during 50 percent or more of the
calendar year; or

(3) 50 percent or more of the employment during the calendar year is not performed in
Minnesota or any other state, or Canada, but the place from where the employee's
employment is controlled and directed is based in Minnesota.

(1) a self-employed individual;

(2) an independent contractor; deleted text begin or
deleted text end

(3) employment by a seasonal employee, as defined in subdivision 35deleted text begin .deleted text end new text begin ;
new text end

new text begin (4) employment with a small employer that has not elected to provide coverage under
section 268B.11, subdivision 1a; or
new text end

new text begin (5) employment with an employer that is closed in its entirety for 30 or more consecutive
days in any consecutive 52-week period.
new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 268B.01, subdivision 17, is amended
to read:

Subd. 17.

Employee.

(a) "Employee" means an individual who performs services of
whatever nature for an employer.

(b) Employee does not include employees of the United States of America, self-employed
individuals, or independent contractors.

new text begin (d) Employee does not include:
new text end

new text begin (1) an employee of an employer excluded from covered employment under:
new text end

new text begin (i) subdivision 15, paragraph (c), clause (4), unless the employee individually elects
coverage under section 268B.11, subdivision 1; or
new text end

new text begin (ii) subdivision 15, paragraph (c), clause (5); or
new text end

new text begin (2) an employee who:
new text end

new text begin (i) primarily performs work outside of the state;
new text end

new text begin (ii) is employed in the state on a limited or temporary work schedule; and
new text end

new text begin (iii) is not expected to be employed in the state for 820 hours or more in a period of four
consecutive completed calendar quarters.
new text end

Sec. 4.

Minnesota Statutes 2023 Supplement, section 268B.01, subdivision 18, is amended
to read:

Subd. 18.

Employer.

(a)new text begin Except as provided in paragraph (b),new text end "employer" means:

(1) any person, type of organization, or entity, including any partnership, association,
trust, estate, joint stock company, insurance company, limited liability company, or
corporation, whether domestic or foreign, or the receiver, trustee in bankruptcy, trustee, or
the legal representative of a deceased person, having any individual in covered employment;

(2) the state, state agencies, Minnesota State Colleges and Universities, University of
Minnesota, and other statewide public systems;

(3) any municipality or local government entity, including but not limited to a county,
city, town, school district, Metropolitan Council, Metropolitan Airports Commission, housing
and redevelopment authority, port authority, economic development authority, sports facilities
authority, board or commission, joint powers board or organization created under section
471.59, destination medical center corporation, municipal corporation, quasimunicipal
corporation, or other political subdivision. An employer also includes charter schools; and

(4) the taxpaying employer as described in section 268.046, subdivision 1.

(b) Employer does not include:

(1) the United States of America; deleted text begin or
deleted text end

(2) a self-employed individual who has elected and been approved for coverage under
section 268B.11 with regard to the self-employed individual's own coverage and benefitsdeleted text begin .deleted text end new text begin ;
new text end

new text begin (3) a small employer having fewer than 50 individuals in covered employment, unless
the small employer voluntarily elects to provide family and medical leave coverage under
section 268B.11, subdivision 1a; or
new text end

new text begin (4) an employer that is closed in its entirety for 30 or more consecutive days in any
consecutive 52-week period.
new text end

Sec. 5.

Minnesota Statutes 2023 Supplement, section 268B.01, subdivision 23, is amended
to read:

Subd. 23.

Family member.

(a) "Family member" means, with respect to an applicant:

(1) a spouse or domestic partner;

(2) a child, including a biological, adopted, or foster child, a stepchild, or a child to
whom the applicant stands in loco parentis,new text begin ornew text end is a legal guardiandeleted text begin , or is a de facto parentdeleted text end ;

(3) a parent or deleted text begin legal guardiandeleted text end new text begin parent of a spouse or domestic partner new text end of the applicant;

(4) a sibling;

(5) a grandchild;new text begin or
new text end

(6) a grandparen