St. Paul, MN – Representative Dave Baker, R-Willmar, Chair of the House Workforce, Labor, and Economic Development Committee, released the following statement in response to the Minnesota Department of Employment and Economic Development’s (DEED) announcement that the payroll tax rate for the state-run Paid Family and Medical Leave (PFML) program will be 25% higher—roughly $350 million more—than the rate approved in the 2023 enacting legislation:
“Today’s news confirms what we’ve known from the start—Minnesota’s one-size-fits-all paid family leave program is not ready to launch on January 1, 2026. Employees and employers were already facing more than a billion dollars in tax hikes due to this legislation, and today’s announcement has revealed that burden will be 20% higher than expected. These are real dollars coming out of Minnesotans’ paychecks and cutting into the razor-thin margins of family-owned businesses struggling to stay afloat. It’s time to take a step back, delay PFML implementation, and find a practical solution that supports both employees and job creators.”
Baker noted that a lower cost option will be released in the coming weeks.
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