Democrats this week brought forward a Jobs and Labor budget and policy package that expands government, increases regulations and funnels millions to private organizations. As a result, Minnesotans are left with fewer opportunities and higher costs. 

The Jobs portion of the bill spends $318 million from the general fund over the next two years, along with $154 million from the workforce development fund. Despite the large investment, the bill fails to build strong pipelines to high-wage, high-demand jobs and instead sends significant funding to nonprofits.  

“I’m disappointed in this bill because it fails to prioritize oversight and accountability, and it fails to create pathways to high-paying jobs – two goals which should be at the forefront of every ‘Jobs’ bill,” said Senator Eric Pratt (R-Prior Lake), who serves on the Senate Jobs committee. “We should be looking at ways to grow and stimulate our economy, yet this bill falls short in every way. Minnesotans would be better served if we instead focused on creating jobs and creating employment opportunities in high-demand industries.”

One concerning provision quietly claws back money that had been set aside to help small businesses comply with the Paid Family and Medical Leave (PFML) mandate set to begin in January 2026. Democrats moved the funds without including the change in the bill text, instead burying it in the fiscal spreadsheet—a move that shielded it from public scrutiny and allowed Democrats to prevent any debate of any PFML-related amendments.  

Republicans offered common-sense amendments, including one authored by Pratt that would require any grantee that fails to meet the terms of a grant agreement to return the funds and bars them from receiving future grants until the money is repaid. This amendment was defeated on a party-line vote.

The Labor portion of the package totals $100 million, compared to $65 million when Republicans held the majority in 2021–2022. Beyond just the increased spending, the Labor bill also introduces costly new regulations that will harm Minnesota’s economy. 

During debate, Senate Republicans pointed out that the Labor bill fails to provide flexibility for the Democrats’ Earned Sick and Safe Time (ESST) mandate. With a one-size-fits-all approach, the law ignores the diverse needs of Minnesota’s small businesses. Key amendments were proposed to offer relief, including one offered by Pratt, which would create an exclusion from ESST coverage for an inmate of a correctional facility performing work for the correctional facility while incarcerated. The majority rejected the amendment, citing that it was not germane to the bill.

“It’s troubling that these penalties have been used as a way to raise revenue for the Department of Labor and Industry so they can increase their budget – this language seems to follow that same trend,” continued Pratt. “We agree with protecting employees and making them whole. But this bill acts as if every employer is a bad actor when they’re not. We already passed a wage theft law that holds bad actors accountable for shorting their employees. The language in this bill is nothing but an attempt to double-dip using new penalties to increase an agency’s budget.”

Additional controversial labor provisions include the following:

• Increased fees and new inspection requirements for manufactured home, driving up the cost of affordable housing
• Shifting permitting control for manufactured homes from local authorities to the state
• Increased fines on employers of up to $1,000 per employee per day for violation of new “rest break” language, requiring a 15-minute rest break for every four hours of work