HF4692
Paid family and medical leave program made optional for both employers and employees.
Legislative Session 94 (2025-2026)
Related bill: SF4817
AI Generated Summary
Purpose
- Create an option for both employers and employees to opt out of Minnesota’s paid family and medical leave program. The bill makes the program voluntary rather than mandatory, within Minnesota Statutes chapter 268B.
Main Provisions
Employer opt out
- An employer can opt out of the paid family and medical leave program and the employer responsibilities under sections 268B.001 to 268B.30 by notifying the commissioner of Employment and Economic Development using a form designed by the commissioner.
- An employer may change their decision to participate in the program no more than once every 12 months.
Employee opt out (including when the employer opts out)
- Every employee has the ability to opt out of participation in the paid family and medical leave program under sections 268B.001 to 268B.30 by notifying their employer and the commissioner using a form designed by the commissioner.
- An employee may change their decision to participate in the program no more than once every 12 months.
Special provision for employees of opt-out employers
- If an employer opts out, employees of that employer have the ability to participate in the program as if they were self-employed under section 268B.11.
Cross-references to law
- The opt-out provisions relate to Minnesota Statutes chapter 268B, including sections 268B.001 to 268B.30 and 268B.11.
Significant Changes to Existing Law
- Introduces a formal opt-out option for both employers and employees, rather than automatic participation.
- Establishes a standardized, commissioner-designed form process for both employer and employee opt-out decisions.
- Limits how often opt-out decisions can be changed (no more than once every 12 months).
- Allows employees to participate in the PFML program as self-employed if their employer opts out.
Practical Impact
- Employers gain flexibility to exclude PFML obligations if they choose.
- Employees retain the right to participate or opt out, regardless of their employer’s decision, with an orderly process and annual-change limitation.
- The program’s administration shifts to a voluntary framework, with formal opt-out steps and forms.
Notes for Readers
- Key terms to look for in the bill: paid family and medical leave program, opt out, notify the commissioner of employment and economic development, form designed by the commissioner, once every 12 months, self-employed under section 268B.11, Minnesota Statutes chapter 268B.
Relevant Terms paid family and medical leave program, opt out, notify, commissioner of employment and economic development, form designed by the commissioner, once every 12 months, self-employed, section 268B.11, Minnesota Statutes chapter 268B, sections 268B.001 to 268B.30, 268B.31
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 25, 2026 | House | Action | Introduction and first reading, referred to | Workforce, Labor, and Economic Development Finance and Policy |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "References existing Minnesota Statutes, paid family and medical leave provisions in Chapter 268B (sections 268B.001 through 268B.30), as the bill discusses opt-out mechanics and related program rules.",
"modified": []
},
"citation": "268B.001 to 268B.30",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References existing Minnesota Statutes section 268B.11 to treat opt-out employees as self-employed for purposes of the paid family and medical leave program.",
"modified": []
},
"citation": "268B.11",
"subdivision": ""
}
]Progress through the legislative process
In Committee