By Dee Depass
Copyright startribune
A major new benefit for Minnesota workers is proving a massive headache for many employers as mandatory paid leave for health and family emergencies goes into effect in just 15 weeks.
Small businesses may be particularly exposed to strain, as many don’t have HR departments to help with the tracking, compliance and reporting required.
These business owners are now flocking to consultants and a state helpline to navigate the law, which requires all employers to provide up to 12 weeks of paid medical or family leave (or 20 weeks combined) to workers needing to care for themselves or a close relative in crisis.
“I think a lot of companies thought maybe this law would not pass, or would just go away. But now they’re realizing that’s not the case,” said Kelly Weight, CEO of the accounting and human-resources consulting firm Brillect in Minneapolis. “The number of calls to our office is definitely increasing rapidly.”
Two years after the law passed alongside a suite of other progressive legislation when Democrats fully controlled state government, employers interviewed by the Minnesota Star Tribune expressed a desire to comply with the law and its impending deadlines. But they first have to understand the program, get insurance quotes and overcome concerns about cost, administrative hurdles and possible fraud.
Milissa Silva, co-owner of El Burrito Mercado in St. Paul, said she supports the intent of the law because it’s good for her employees. But the mandate comes at a hard time, she said, since it includes a new payroll tax of 0.88% (or 0.66% for tiny firms with fewer than 30 workers).
Expenses have skyrocketed as sales have dragged — enough that she had to lay off some of her 90 workers at the 46-year-old market and cafe.
“I wish there was an option to opt in at different levels, and not just a blanket requirement,” Silva said.