Agenda - Council Work Session - 07/08/2025

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Q21. What if we allow the employee to supplement the benefit by taking paid leave in addition to the leave under this program; can the employee exceed their normal wages? A21. No, an employee cannot make more not working than they would actively working. Employers may designate certain benefits as a supplemental benefit, including but not limited to salary continuation, vacation leave, sick leave, or other paid time off. Payments designated as "supplemental benefits" can make up the difference between partial and full wage replacement. Even if supplemental benefits are offered, the choice to receive supplemental benefits lies with the employee. However, Minnesota Paid Leave law specifically prohibits a situation where a supplemental benefit payment combined with any leave benefit under this program exceeds the regular wage or salary of the employee. Return to ton of nage Q22. What should our city do to prepare for this new law, now and in preparation for Jan. 1, 2026? A22. Action areas cities may want to begin considering in preparation for the new law include: • Review how employees' accrued leave benefits will interact with the Minnesota Paid Leave plan. The League is currently developing tools to help cities work through how common existing leaves may work with Minnesota Paid Leave absences, especially for cities considering permitting employees to "topping off" Minnesota Paid Leave benefits with other benefits such as accrued leave. Begin working on personnel policy updates for nonunion employees regarding paid leave policies and other aspects of this program. Part of this review may include the following strategic planning questions: • Will the city pay 50% of the premium or more? Refer to Q5 and Q17. • Review your time and attendance procedures. Cities can require employees to follow city notification policies for their leave, but those notifications must be outlined in policy and compliant with the Minnesota Paid Leave law. • Think through whether your city wishes to allow employees to use other benefits like short-term disability, long-term disability, and accrued city leave to top off/make their salary "whole." Refer to Q15 and Q20 to review offsets with your short-term disability or long-term disability carriers. • Review city policies to determine the minimum increment of time you will allow workers to take leave (i.e., 30 minutes, one hour, a half day, a full day?). • Be familiar with ADA and MHR A laws to be aware how reasonable accommodations can come into play once an employee's Minnesota Paid Leave expires. Cities can reach out to the League to learn more. • Determine a paid leave administrator, especially with respect to logging into the state's portal for Minnesota Paid Leave administration. Per DEED, the paid leave administrator is the point of contact who will: • Manage the city's account with paid leave. • Review applications submitted by employees.