As school districts across Minnesota continue to grapple with the logistic and financial challenges of the state government’s many (80+) unfunded mandates, a new hurdle has arisen for districts: navigating Minnesota’s new paid medical and family leave policy.
The policy, passed in 2023 and effective this January, mandates that employers provide employees with up to 20 weeks of medical or family leave. During the employee’s leave, the state provides the employee with a stipend of up to 90 percent of their typical weekly pay, with an eventual cap at $1,423 a week, the state’s average weekly wage. The state provides this money through a new payroll tax (0.88 percent of an employee’s salary) and administers the program through the Department of Employment and Economic Development (DEED), which has hired 400 new employees to deal with application approval and logistics.
The program does not cover federal government employees, postal workers, railroad employees, seasonal hospitality employees, independent contractors, or Tribal Nations.
However, school districts are required to opt into the program.
This unfunded mandate might have frustrating consequences for stretched-thin school districts.
In a January 20 Albert Lea school district meeting, superintendent Dr. Steven Heil warned of administrative overwork connected with the policy.
He announced that the employer paperwork connected with Minnesota Paid Leave was taking the business and HR office a “considerable amount of time,” and their offices have seen a significant spike in paid leave applications. Each leave application initially takes about 4-5 hours, followed by further meetings.
Dr. Heil estimated that one HR staff member had spent “one half to two thirds” of their days since January 20 on Minnesota Paid Leave applications. (5:10) Albert Lea only has two HR employees listed on their website.
Dr. Heil expressed worry about the logistic challenge. “If it[the applications] keeps up at this pace, it’ll be hard to keep up with it.”
The Paid Family and Medical Leave program does not provide extra cash to school districts to cover the cost of the necessary substitute teachers if teachers take family or medical leave. Under the program, teachers are legally allowed to take leave for half of an academic year (20 weeks)— which could leave administrators scrambling to fill the gaps in the classroom.
As the rollout of the Paid Family and Medical Leave program continues, it will be essential for school districts to plan ahead in order to avoid significant staffing and budget consequences.
