Agenda - Council Work Session - 07/08/2025

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Q2. Which employees are covered by this new law and which are exempted? A2. Self-employed individuals and contractors are not covered by the law but as of 2025 they can opt into coverage for paid leave benefits beginning on Jan. 1, 2026. All other city employees are likely to be covered. Minnesota Paid Leave law defines Minnesota employees as: • Employees who worked 50% or more of the prior year in Minnesota. • For employees who performed some work in Minnesota but did not work 50% or more of the year in Minnesota or any one state, coverage applies if they live in Minnesota during 50% or more of the calendar year. As the definition reflects, there is no specific exemption for part-time employees, paid on -call firefighters, or elected officials. However, the city should consult with their city attorney to decide whether these paid on -call firefighters or elected official positions would be considered "employees" of the city for the purpose of this law. Applicants are ineligible for Minnesota Paid Leave benefits for any portion of a typical workweek for which they are incarcerated or are receiving or have received unemployment insurance benefits. In 2024, the Legislature added a seasonal employee exception for those "who are employed no more than 150 days during any consecutive 52-week period in hospitality by an employer whose average receipts during any six months of the preceding calendar year were not more than 44% of ties average receipts for the other six months of year." While some city golf restaurants may fall under this exception, under the current law and guidance, other nonfood oriented seasonal positions may not fall under this narrow exception. Thus, full time, part time, temporary, and most seasonal workers are covered and subject to Minnesota Paid Leave. DEED is in a rulemaking process and may provide additional guidance. To receive benefits under this new law, the employee must have wage credits of at least 5.3% of the state's average annual wage (SAAW) rounded down to the next lower S100. For 2024, the state reported this threshold at $3,700. Return to ton of nage Q3. What paid leave benefits will employees receive under this new state plan? A3. The law provides paid family and medical leave to employees who apply for the benefits and meet eligibility requirements. The following types of leave qualify under state law are similar to, but not an exact match, to the federal Family and Medical Leave Act (FMLA). Due to the differences between FMLA and Minnesota Paid Leave, an employee may qualify for paid leave, even if they do not qualify for FMLA leave. Employer policies can require that leave taken under paid leave runs concurrently with leave taken for the same purpose under FMLA. • Bonding after birth, adoption, or foster parenting. • A "qualifying exigency," such as a need associated with a military member's active -duty service or has been notified of an impending call or order to active duty in the Armed Forces.