SMALL BUSINESS IS SHOCKED BY NEW FAMILY LEAVE MANDATE
St. Paul (February 24, 2015) – Today the National Federation of Independent Business (NFIB), the state’s largest business advocacy group with over 13,000 members, is expressing its shock and disbelief by the dramatic and onerous proposed paid family leave mandate contained in House file 580. The legislation, authored by Representative Ryan Winkler (Golden Valley), and Senator Katie Sieben (Newport) is not sitting well with small business in Minnesota.
“This legislation is shocking to our members” said NFIB Minnesota State Director, Mike Hickey. “It goes far beyond what any other state has done in terms of its far reaching impact and detrimental cost.”
The bill would create a new payroll tax that is levied on both employees and employers, and guarantee a qualifying employee up to six weeks of leave at 90-95% of their current salary. Additionally, it places a new 0.1% tax on every employee’s yearly wage, with a cap at $78. Employers would be required to match the total amount of contributions of their work force and the funds would be deposited in an account managed by the state.
“Obviously the authors and the advocates of this legislation have no concern for what other states have done because this goes so far above and beyond,” said Hickey.
According to the National Council of State Legislators, California and New Jersey have a mandated paid family leave benefit but they both exempt companies with less than 50 employees as well as require the employee to fund the program through a payroll tax. The third state to have such a plan, Rhode Island, makes the paid leave requirement optional for employers who desire to opt-in.
“It is just unbelievable that they would mandate something this rigorous on the smallest companies in our state who are struggling to survive and some of which may not be in business next year,” said Hickey. “NFIB is strongly opposed to the micro-managing of businesses, such as this, regardless of size, but it is notable they offered no exemption for the smallest, most vulnerable companies.” Hickey added.
NFIB and likely several other business groups will strongly oppose this new mandate which is hopefully DOA in the new House of Representatives.
