Paid Family and Medical Leave Bill -- Bad Policy Wrong for Minnesota
May 22, 2023
The Paid Family and Medical Leave Act was approved last week by the Minnesota legislature by votes of 68-62 in the MN House, 34-32 in the MN Senate. All Republicans voted against it.
Why? Because it imposes a government mandate on all employers in Minnesota without regard to the impact it will have ultimately on employment. It increases the cost of labor, reducing the incentive to hire additional employees. Employers in struggling enterprises may have to let employees go that are not significant contributors.
Rep Andrew Myers (R, Tonka Bay) pointed out that this new law is funded by a brand-new tax on employers and employees. "It will cost billions of dollars to get up and running and will require as many as 400 new full-time employees to develop and administrate the program."
Rep. Danny Nadeau (R, Rogers) wrote to his constituents on May 5 that he supports expanded access to paid family and medical leave, but "had serious concerns about the details of this proposal, including new payroll taxes, ever-growing government bureaucracy, and troublesome mandates."
As an alternative, Republicans proposed the Minnesota Family and Medical Leave Insurance (FaMLI) Plan. As Rep Nadeau stated on the floor of the house, the FaMLI Plan was "clear, stable, affordable, and flexible plan that serves families" rather than promote an activist agenda. It was defeated.