Senate Advances Paid Leave Proposal
On Monday, Senator Julia Coleman (R – Waconia) unveiled the Senate’s paid leave plan. The plan would allow for the creation of family leave insurance, a product that is currently not allowed in state law. Workers with a newborn or sick family member would take paid time off through a private insurance plan. Businesses would be incentivized to participate through tax credits. $50 million would be set aside for businesses with less than 50 employees who could qualify for up to $3,000 per employee. SF3885 has already passed the Senate commerce committee on Monday.
This is an alternative plan to the House proposal that would offer 12 weeks of paid leave through a state-managed fund that employers and employees would pay via payroll tax, similar to social security.
These measures may be in response to the growing childcare crisis and consequential labor shortage that has slowed pandemic recovery. The Pew Research Center found that in 2021, 48% of parents with kids under 18 cited childcare issues as a reason for quitting their job.