Agenda - Council Work Session - 07/08/2025

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Q15. Can the city require employees to use other paid leave to supplement the Minnesota Paid Leave program benefits? A15. No. The law explicitly states that employers cannot require employees use their accrued paid time off to supplement any benefits they receive from the Minnesota Paid Leave program. However, the law allows, but does not require, the city to supplement the payments available under this program by allowing the employee to use paid leave in addition to the paid benefits available under the new program. Recall in Q3, the Minnesota Paid Leave benefit is progressive and varies based on an employee's weekly wages. A city allowing employees to use supplemental benefits (such as sick leave, vacation, PTO and short-term disability) to "top off" Minnesota Paid Leave payments provides employees with the opportunity to be made "whole" in many cases through much of their leave period, and simultaneously draws down accrued leave liabilities for a city. That said, an employee's supplemental benefits combined with Minnesota Paid Leave may not exceed the employees' pre -leave wages. For additional information on short-term disability/long-term disability impacts, refer to Q20. The city should consult with the city attorney to determine if there are other policies, collective bargaining agreements, or state or federal laws that might require or prohibit this. Also see Q17. In some cases, if an employer provides an employee wage replacement during an absence, and the total of Minnesota Paid Leave benefits and any supplemental benefits exceed the employee's usual salary, the employee must refund the excess to either the employer or DEED. If an employer provides wage replacement benefits to an employee for a week that should have been paid by DEED, then DEED may reimburse the employer directly. Return to top of page Q16. Can the city require the employee to use city leave first before accessing this program? A16. No. The city cannot require the employee to use paid leave first before applying for benefits under this new program. However, an employee can choose to use vacation, sick, or paid time off, or disability insurance payments in lieu of the state paid leave program. During the period of time the employee is using city paid leaves instead of the Minnesota Paid Leave program, they are entitled to the employment protections of the law. If the city runs FMLA concurrently with paid leave under this program, that time would likely reduce the amount of leave available to the employee under the state's paid leave benefits, although the state is ultimately responsible for making an eligibility determination decision. In response to an application for benefits under the Minnesota Paid Leave program, the state is responsible for issuing an eligibility determination regarding the amount of benefits available to the applicant. Cities must exercise caution to not interfere with or retaliate against an employee for exercising their rights under the Minnesota Paid Leave law. Return to top of page Q17. How will this impact collective bargaining agreements (CBAs)? A17. The law does not preclude employers from bargaining with unions with respect to leave benefits and related procedures and employee protections, as long as they meet or exceed, and do not otherwise conflict with, the minimum standards and requirements in the law. Many