(KNSI) – Groups representing small businesses are concerned about the true costs of Minnesota’s Paid Family Leave and Medical Leave Act, which was signed into law this week.
Minnesota’s National Federation of Independent Businesses said it was disappointed in its obligations to employers and their employees. The cost of this program is covered by his 0.7% payroll tax, half of which the employer can pass on to the employee. According to NFIB, the amount will be $1.5 billion annually.
The funds will be used to pay workers who need to take time off to care for a loved one, the birth of a child, or illness. You can take up to 5 months of vacation per year.
The bill requires states to conduct an independent review of the program by October 31. According to the NFIB, the bill contains complex employment regulations and harsh penalties for violations. The group also says it will need more money to cover the cost of the program. If the report shows the program to be financially unviable, the Secretary of Employment and Economic Development could raise the payroll tax to 1.2% without Congressional approval.
The NFIB says there is little leeway for businesses trying to survive after the COVID-19 lockdown, and there are no provisions to help small businesses that are already struggling to attract and retain workers. Nor is it prepared to replace the lost labor force.
Story by Jake Judd/KNSI