HF2113

HF2113 (Legislative Session 94 (2025-2026))

Small employers exempted from requirement to provide paid leave.

AI Generated Summary

Purpose of the Bill

The bill aims to modify employment laws in Minnesota by exempting small employers from the obligation to provide paid leave. It focuses on defining covered employment, employees, and employers in relation to this exemption.

Main Provisions

Exemption for Small Employers: The bill exempts employers with 50 or fewer employees from having to provide paid leave. These small businesses, as defined in amended portions of the statute, are not required to offer this benefit, aligning with calculations specified in section 268B.14 subdivision 5b.
Definitions of Employment: It clarifies the definition of "covered employment" to include employment conducted in Minnesota or by Minnesota residents, except for self-employed individuals, independent contractors, and small employers with 50 or fewer employees.
Definitions of Employee and Employer:
- An "employee" is defined as someone performing services for another entity, but it specifically excludes those working for small employers with 50 or fewer employees.
- An "employer" refers to individuals or entities engaging an individual in covered employment, excluding those with 50 or fewer employees.
Opt-In Option for Excluded Entities: Employers excluded under the new provisions can opt to provide paid leave by following a procedure set by the commissioner, in which case their employees' services become “covered employment.”

Significant Changes to Existing Law

Change in Paid Leave Requirement: By amending Minnesota Statutes section 268B.01, the bill introduces a significant change that small businesses are not mandated to provide paid leave, which was previously a requirement for all employers regardless of size.
Rulemaking Authority: The bill grants authority to the commissioner to define and establish criteria related to the inclusion and exclusion from covered employment more clearly.

Relevant Terms

Paid Leave
Small Employers
Covered Employment
Self-Employed Individuals
Independent Contractors
Opt-In Coverage

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 09, 2025	House	Floor	Action	Introduction and first reading, referred to	Workforce, Labor, and Economic Development Finance and Policy

Citations

[
  {
    "analysis": {
      "added": [
        "Clarifies entities included as employers for unemployment insurance purposes."
      ],
      "removed": [],
      "summary": "This section of the bill pertains to the definition of 'taxpaying employer.'",
      "modified": [
        "Elaborates on entities excluded from being considered employers under specific conditions."
      ]
    },
    "citation": "268.046 subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This is a reference for calculating the number of employees to determine exemption from employer status.",
      "modified": [
        "Specifies methodology for determining exemption based on employee count."
      ]
    },
    "citation": "268B.14 subdivision 5b"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section involves joint powers agreements for governmental entities.",
      "modified": [
        "Reference to joint powers agreements in defining the scope of 'employer' under the law."
      ]
    },
    "citation": "471.59"
  }
]