ST. PAUL – House Democrats approved legislation Tuesday which Rep. Harry Niska, R-Ramsey, said will hurt employee wages and damage businesses by establishing a mandatory paid leave program funded by a new tax on employers and workers at a time the state has a $17.5 billion surplus.
“The program Democrats propose creates massive, new government bureaucracy for an issue that can be better handled for everyone with private-sector solutions,” Niska said. “Workers and businesses alike deserve a system that can be tailored to their own needs instead of having a restrictive and costly mandate placed upon them. That’s the approach Minnesotans want, and House Republicans are looking to deliver.”
Niska said the program (H.F. 2) would cost billions of dollars to get up and running and require as many as 400 new full-time government employees to develop and administrate. He added the program applies to virtually every industry in the state – private employers, nonprofits, cities, counties, and school districts – despite objections. It would be funded with a $2.9 billion tax on employers and employees and expands employers’ leave obligations to part-time and temporary employees. The Minnesota Chamber of Commerce reports 80 percent of its members already provide paid family leave, Niska said.
Unlike the Federal Family and Medical Leave Act, which only applies to employers with 50 or more employees, Niska noted this program would apply to all employers including those with only one employee. Employees can stack leave together, allowing for up to 24 weeks of paid time off per year.
On the other hand, Niska indicated Republicans have developed a plan which takes a different approach, providing a small-business tax credit to incentivize employers to join the plan. The key difference, he said, is the minority’s plan provides paid family and medical leave benefits for employees without job-crushing mandates and new taxes.
The House Republican proposal provides a small business tax credit to incentivize employers to join the plan. Minnesotans may opt into the program for $5 per week if an employer does not join by using the parameters of the state’s paid leave policy, leveraging the power of the state’s 10s of thousands of employees.
“Workers who are satisfied with their current benefits can keep them without being forced onto a government program,” Niska said. “Our proposal is a more cost-effective and flexible model that would deliver better results for job creators and employees alike.”
Niska also indicated the House Republican option is backed by an insurance company, so taxpayers will not be expected to cover the costs of program shortfalls or losses. Benefits would be available to Minnesotans this Jan. 1 – a full 18 months earlier than the House Democrat proposal.
Niska successfully added what he deemed a “small, but reasonable” amendment to the Democrat bill Tuesday, ensuring fraudulently obtained program benefits are treated as criminal matters.
The House Republican plan also was offered as an amendment to the Democrat bill. House Democrats voted down that offering before approving their own bill, sending it to the Senate for action.
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