SF4058

Minnesota Paid Leave Law exemption for certain individuals working in transportation occupations
Legislative Session 94 (2025-2026)

Related bill: HF3839

AI Generated Summary

Purpose

This bill would change who is covered by Minnesota’s Paid Leave Law by adding specific exemptions for people who work in transportation-related jobs. It amends definitions that determine who counts as “covered employment” and who is an “employee,” so that many transportation workers could be excluded from paid leave requirements.

Main provisions

Covered employment definition expanded to address where and how employees work:
- An employee’s entire employment for a calendar year is considered, with a 50% rule about whether most work is done in Minnesota or elsewhere.
- If 50% or more of the work is done in Minnesota (or if the employee lives in Minnesota for 50% or more of the year), it affects whether the work is considered covered.
Exemptions from covered employment:
- Self-employed individuals.
- Independent contractors.
- Seasonal employees.
- Anyone in a position for which the U.S. Department of Transportation (DOT) can set qualifications and hours of service (under federal law 49 U.S.C. 31502).
- Anyone employed by a business entity classified under SIC codes 421201 through 423102 (Motor Freight Transportation and Warehousing).
Optional coverage for previously excluded entities:
- Entities that are exempted may opt in to coverage following a procedure set by the commissioner.
- If they opt in, the employees’ services are treated as covered employment.
Rulemaking authority:
- The commissioner can adopt rules to define how this subdivision applies.
- The commissioner can set criteria for covered employment for employees who don’t meet the standard criteria but still work as employees for Minnesota employers.

Changes to existing law

Alters the definition of covered employment and employee in Minnesota Statutes 2024 section 268B.01 to create federal transportation-related exemptions.
Adds a pathway for certain transportation-related workers to be excluded from the paid leave requirements, and adds an opt-in option for some exempt entities.

Practical impact

Transportation workers who fall into these exemptions (DOT-regulated positions, specific motor freight and warehousing employers, self-employed, independent contractors, or seasonal workers) may not be required to receive Minnesota Paid Leave.
Employers in transportation sectors may have the option to opt into paid leave coverage for these workers, if they choose and follow the commissioner’s adopted procedures.

Note on terms used in the bill

The bill repeatedly uses terms like “covered employment,” “employee,” “employer,” and “calendar year,” and ties coverage to location (Minnesota versus other states) and residency.
It references federal transportation standards (DOT, 49 U.S.C. 31502) and industry classifications (SIC 421201-423102).

Relevant Terms - Minnesota Paid Leave Law - Covered employment - Employee - Self-employed - Independent contractor - Seasonal employee - United States Department of Transportation (DOT) - 49 U.S.C. 31502 - SIC 421201 through 423102 - Motor Freight Transportation and Warehousing - Opt-in - Rulemaking - Minnesota Statutes 268B.01 - Calendar year - Minnesota residence - Wage or contract for services - Exemption criteria

Bill text versions

Introduction PDF PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 02, 2026	Senate		Action	Introduction and first reading
March 02, 2026	Senate		Action	Referred to	Jobs and Economic Development

Citations

[
  {
    "analysis": {
      "added": [
        "New definition of 'Covered employment' that excludes certain categories (e.g., self-employed individuals, independent contractors, seasonal workers, DOT-qualified positions, and specific motor freight entities) from being considered 'covered employment'.",
        "Provision allowing entities that are otherwise excluded to opt in to coverage.",
        "Rulemaking authority for the commissioner to further define the application of this subdivision."
      ],
      "removed": [],
      "summary": "This bill amends Minnesota Statutes 2024 section 268B.01, subdivision 15, to define 'Covered employment' for purposes of the Minnesota Paid Leave Law and set out who is excluded from coverage, creating exemptions for certain transportation-related workers.",
      "modified": [
        "Revises the criteria for what constitutes 'Covered employment' under subdivision 15, thereby broadening exemptions for transportation occupations from the Paid Leave Law."
      ]
    },
    "citation": "268B.01",
    "subdivision": "15"
  },
  {
    "analysis": {
      "added": [
        "New definitional framework for 'Employee' that mirrors the exclusions defined for 'Covered employment' (e.g., self-employed individuals, independent contractors, seasonal workers, DOT-qualified positions, and certain motor freight entities are excluded).",
        "Continued alignment with the exemptions related to transportation occupations."
      ],
      "removed": [],
      "summary": "This bill amends Minnesota Statutes 2024 section 268B.01, subdivision 17, to redefine 'Employee' in the Paid Leave Law context and align exclusions with transportation-related and other specified categories.",
      "modified": [
        "Revises the definition of 'Employee' under subdivision 17 to reflect exemptions consistent with the amendments to subdivision 15, thereby altering who may be considered an employee for purposes of the Paid Leave Law."
      ]
    },
    "citation": "268B.01",
    "subdivision": "17"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references seasonal employees as defined in subdivision 35 of section 268B.01, indicating coordination with the transportation-related exemptions in subdivisions 15 and 17.",
      "modified": [
        "Uses the existing subdivision 35 definition of 'seasonal employee' to qualify certain exemptions; the text references this subdivision rather than redefining it."
      ]
    },
    "citation": "268B.01",
    "subdivision": "35"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill cites federal law—United States Code, title 49, section 31502—regarding the United States Department of Transportation's authority to establish qualifications and maximum hours of service.",
      "modified": [
        "No modification to federal law; the citation is included to support the transportation-related exemptions in Minnesota law."
      ]
    },
    "citation": "49 U.S.C. § 31502",
    "subdivision": ""
  }
]

Progress through the legislative process

17%

In Committee