SF4817

Paid family and medical leave program made optional for both employers and employees provision
Legislative Session 94 (2025-2026)

Related bill: HF4692

AI Generated Summary

Purpose

The bill makes the paid family and medical leave program optional for both employers and employees in Minnesota.

Main Provisions

Employers may opt out of the paid family and medical leave program and the employer responsibilities under Minnesota Statutes chapter 268B 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.
Employees of employers who opt out may participate in the program as if they were self-employed individuals under section 268B.11.
Every employee may opt out of participation in the program 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.

Changes to Existing Law

The bill shifts from a mandatory participation model to an opt-out model for both employers and employees.
It creates a formal opt-out process requiring notification to the commissioner and, for employees, to both the employer and the commissioner.
It allows employees in opt-out situations to participate as self-employed individuals under existing provisions (268B.11).

Practical Implications

Employers gain the option to discontinue participation in the paid leave program, potentially reducing employer obligations and funding requirements under the program.
Employees can choose to participate or not, even if their employer opts out, with the possibility to participate as if self-employed in certain circumstances.
The process relies on forms designed by the commissioner, creating a standardized method for opting out and for changing decisions (limited to once per year).

Terminology from the Bill

paid family and medical leave program
opt out
notify the commissioner
form designed by the commissioner
self-employed (under section 268B.11)
Minnesota Statutes chapter 268B (268B.001 to 268B.30)
employer
employee
once every 12 months

How to Interpret the Bill’s Effects

The bill proposes a major change in how the paid family and medical leave program is administered, giving both employers and employees the right to opt out, subject to annual limits on changing decisions.
In opt-out situations, employees may still access the program through a self-employed pathway, preserving some benefits of coverage even if the employer withdraws from participation.

Relevant Terms paid family and medical leave program, opt out, notify the commissioner, form designed by the commissioner, self-employed, Minnesota Statutes chapter 268B, 268B.11, 268B.001 to 268B.30, employer, employee, once every 12 months

Bill text versions

Introduction PDF PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 25, 2026	Senate		Action	Introduction and first reading
March 25, 2026	Senate		Action	Referred to	Jobs and Economic Development

Citations

[
  {
    "analysis": {
      "added": [
        "Adds an opt-out mechanism for employers to withdraw from the program by notifying the commissioner using a form designed by the commissioner.",
        "Allows an employer to change their opt-out decision no more than once every 12 months.",
        "Extends the opt-out option to employees of opt-out employers, enabling participation in the program as if they were self-employed under section 268B.11."
      ],
      "removed": [
        "Eliminates mandatory participation requirements in the paid family and medical leave program for both employers and employees."
      ],
      "summary": "This bill references Minnesota Statutes, chapter 268B (Paid Family and Medical Leave) and introduces an opt-out framework that would allow both employers and employees to decline participation in the paid family and medical leave program.",
      "modified": [
        "Converts mandatory participation provisions within 268B.001 to 268B.30 into an opt-out framework.",
        "Adds a requirement that opt-out decisions be documented via forms approved by the commissioner."
      ]
    },
    "citation": "268B.001 to 268B.30",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Permits employees of opt-out employers to participate in PFML as if they are self-employed under 268B.11."
      ],
      "removed": [],
      "summary": "This bill references Minnesota Statutes 268B.11, which governs eligibility for participation as self-employed in the paid family and medical leave program; it states that employees of opt-out employers may participate in the program as if they were self-employed under 268B.11.",
      "modified": [
        "Reframes or extends the application of 268B.11 to include employees of employers that have opted out of mandatory participation."
      ]
    },
    "citation": "268B.11",
    "subdivision": ""
  }
]

Progress through the legislative process

17%

In Committee