Another One-Size-Fits-All Mandate on Minnesota Business

Minnesota Democrats have once again put forward another disappointing mandate that will drive up the cost of doing business in our state, this time in the form of paid family and medical leave. This idea has been around for years but there has been an unwillingness to work out the details and make compromises needed to get it to pass. Though many people agree that some form of paid family leave should be available as a benefit to workers, the Democrat bill that passed goes far beyond that by creating a one-size-fits-all mandate that will put pressure on businesses and expand government.

The bottom line is that the Democrat bill simply misses the mark. It will require a brand new government agency, which will be staffed by over 400 new state employees. It will also require the creation of a brand new IT system, which will be used to run the program. Unfortunately, if we think back to MNLARS and MNSURE, it’s clear that Minnesota doesn’t have a great track record with developing these new systems. Not to mention the fact that this program will also need to be ready to go in a year and a half. We’re already working with such a short timeline, and it’s very concerning that there will not be adequate time to vet and test this new system. It simply won’t be workable.

Another concern is that this bill allows the government to insert itself between the employee and employer. I firmly believe it is not the government’s role to step in to play mediator in these circumstances, yet this new government agency will do just that. Instead of being the middle man between employer and employee, the state should instead focus on finding a solution that is flexible for all parties. Last year, Senate Republicans put forward a plan that would have allowed insurance agencies to offer paid leave as a product that employers could then offer to employees. This was a plan that not only had Republican, Democrat, and Independent support last year, but it also passed in the Senate. It would have offered employers with the flexibility to tailor the plan to their employees’ needs. Instead of working with Republicans to make this plan workable, the Democrats pushed through a plan that offers businesses no flexibility, and expects every business, regardless of size, to adhere to its implementation.

We’ve heard from school districts cities, counties, and businesses of all sizes across the state—they simply cannot manage this new mandate. They are already struggling to find folks to fill out their staff, and this will only worsen that problem. Businesses will now have to increase staffing numbers, which means staffing up to 125% in a time during which they’re struggling to be 100% staffed. This mandate allows up to 24 weeks of paid leave time, and that means employment will become increasingly unpredictable.

Instead of looking at all options and considering the impacts of various plans, Democrats pushed through their idea, and refused to entertain Republican input that would have made this bill better and more tangible for Minnesota. I’m disappointed that Democrats were unwilling to work across the aisle to get this right. At the end of the day, this is going to be yet another tax on your paycheck. I’m incredibly concerned that this mandate, combined with many of the other bills that have passed this year, are going to drive up the cost on our schools, cities, and counties, which will lead to higher property taxes. It will have a profound negative impact on our small town businesses and may force many of them to close. We could have done better, but unfortunately we are stuck with a one size fits all mandate that has superintendents, school boards, local officials, and small business mangers very concerned.