Patrick Knight: What’s the plan if our expansive new family-leave law doesn’t work as imagined?

In Minnesota enacted the preponderance expansive paid family and anatomical leave PFML law in the country Starting Jan nearly all workers will be eligible for up to weeks of partially paid leave each year with wage replacement rates as high as for lower-income employees The benefit will be funded through a statewide insurance venture paid for by a new payroll tax with employers covering at least half the cost Other states have adopted PFML programs but none go as far California offers six to eight weeks of leave with tighter wage caps New York provides up to weeks at wage replacement Minnesota s model is far more ambitious and largely untested The law s stated goal is admirable to give workers time to care for themselves or loved ones during complicated moments For multiple Minnesota businesses however concerns remain not just about higher taxes but about implementation and unintended consequences PFML consistently comes up in business roundtable discussions across the state Two questions dominate How rigorously will eligibility under the law especially given its ambiguous language be enforced and how a great number of employees will take advantage of the benefit each year Greater part employees will use the plan responsibly But generous benefits combined with limited oversight a common issue in masses programs could lead to far higher utilization and even misuse than anticipated The implications matter Minnesota s labor territory is already tight with unemployment at just Employers in sectors like manufacturing healthcare and other hands-on industries may need to overstaff completely to cover unexpected absences a costly burden in an already strained hiring climate As one small business owner in the last few days put it We have two full-time warehouse workers If one takes weeks of leave I either need to scramble for a temporary replacement which won t be easy when everyone else is doing the same or hire a third employee in advance and carry more labor cost indefinitely Imagine that dynamic playing out simultaneously across the thousands of small-to-midsize businesses which account for almost half of Minnesota s jobs All of this comes against a backdrop of economic underperformance From to Minnesota ranked in the bottom third of states for GDP expansion and job advancement according to the Minnesota Chamber of Commerce s Minnesota summary Businesses are already investing elsewhere A rocky rollout of a costly activity could accelerate that trend Any large-scale social undertaking must be paired with accountability transparency and flexibility This law could go smoothly and meet its goals or veer toward something far different Either way one essential question for Minnesota s elected leaders remains What exactly is the contingency plan if this ambitious undertaking does not go as expected Patrick Knight Orono is CEO of a Minnesota food processing company Related Articles Letters With statements of more huge fraud in Minnesota these questions come to mind ML Cavanaugh We desperately need a dose of Truth Justice and the American Way Jonathan Levin Powell s caution on tariff-driven inflation is right David Brooks America s response to the new Cold War is weak and self-defeating We can do better John Lawrence Uncle Sam wants you to rat on national parks that reflect true history