Jobs and Labor budget creates burdensome mandates and tax increases that will cost Minnesotans and small businesses

On a party-line vote, Senate Democrats yesterday approved a hyper-partisan $1.5 billion Labor and Jobs budget agreement.

The jobs portion of the bill includes a number of controversial provisions:

  • Earned sick time proposal that requires all businesses with at least one employee to establish a sick time plan allowing employees to earn at least one hour of sick time for every 30 hours worked
  • Creation of a new Capitol Area Vitality Account to improve the livability, economic health, and safety of communities within the capitol area
  • Significant funding for a variety of nonprofits and economic development programs on an uncompetitive basis

Current law permits collective bargaining for “terms and conditions” of employment, including work hours, compensation and personnel policies related to working conditions. However, the Labor portion of this bill alarmingly expands “terms and conditions” to include staffing ratios, adult-to-student ratios in classrooms, student testing, and student-to-personnel ratios. This will transfer managerial control away from the locally-elected school board, and reduce the flexibility for local school administrators and union leaders as they pursue mutually beneficial contracts. 

“This bill is incredibly disappointing and does nothing to address workforce shortages and the issues facing small businesses throughout the state,” said Senator Karin Housley (R-Stillwater). “Most troubling of all, it puts forward mandates that will crush our nursing homes. Senate Republicans have tried on multiple occasions to offer additional funding to address the crisis these homes are facing, only to be rejected at every turn. Nursing homes are closing, staff are leaving the field, and these mandates will only worsen the situation. These homes serve our loved ones—our moms, dads, and grandparents… But the mandates included this bill will hurt nursing homes beyond repair, leading to less staff and closed facilities, and leaving our loved ones with nowhere to go. This bill wasn’t ready, and its negative effects will be far-reaching. We have to do better for Minnesota.”