Minnesota business owners assess early going of paid leave law

Minnesota officials and small-business advocates are sharing early numbers and experiences from the state’s paid leave program, which launched this year. In its first six months, the Department of Employment and Economic Development said nearly 75,000 workers had benefit applications approved.

The state-run program is funded by a payroll fee shared by workers and employers. It offers up to 12 weeks of partial wage replacement for qualifying life-changing events, especially for workers at companies that cannot offer paid leave on their own.

Greg Conley, human resources coordinator for Northern Waters Smokehaus in Duluth, said the program worked well when one of his employees used it.

“It didn't cost our company a bunch of money,” Conley pointed out. “We didn't end up extending weeks of sick time to this person.”

In an emailed statement, the Minnesota Chamber of Commerce said the law has been a cost and administrative burden for participating businesses. The chamber said more work is needed to make the program more flexible and affordable. State officials said they are committed to continuous improvement, but they said pre-launch planning and public input helped prevent major operational headaches so far.

Allie Palmer, Minnesota small business senior campaign strategist for the advocacy group the Main Street Alliance, is encouraged to see the program’s effect across much of the state, including business corridors in smaller communities.

“A mom-and-pop bakery on the corner or a small law firm or a clinic — all of these different businesses that are employing our neighbors and serving our neighbors,” Palmer explained.

The state reported 44% of applicants live outside the seven-county Twin Cities metropolitan area.

Palmer added feedback gathered by Main Street Alliance has been mostly positive but acknowledged some businesses have reported hiccups, including gaps in awareness that an applicant needs paperwork from a health provider to confirm the reason for taking leave.