Today, the House began the hearing process for Paid Family and Medical Leave, HF2/SF2. This morning, HF2 was heard in House Workforce Development Finance and Policy. Hospitality Minnesota members Troy Reding (Ally Restaurants) and Mindy Fredrikson (Gunflint Lodge Outfitters) spoke on the bill – raising challenges the one size fits all approach brings to small businesses.

HF2/SF2 will continue to work through the committee process, with the Senate State and Local Government and Veterans Committee hearing the bill this afternoon. If you would like to testify at an upcoming hearing, please reach out to Jill.

Key components of the Paid Family and Medical Leave legislation, as drafted, include:

• Establishment of a state-administered paid leave insurance program. 
• Payroll tax of 0.7%. 
• Employer will pay a yearly premium on employee's taxable wages and may deduct up to 50% of premium for employees' wages. 
• Beginning on January 1, 2026 annual percentage rates on premiums may increase or decrease based on the formula set by the state.
• Funds partial wage replacement benefits for 12 weeks of paid parental and family leave; and 12 weeks of paid medical leave.  
• Employees could miss up to 24 weeks of work, plus potentially access Earned Safe and Sick Time or Family Medical Leave Act.  
• Effective January 1, 2024.