HF2113

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