Almost 12,000 applications have been submitted for Minnesota’s new paid leave program since it opened earlier this week, according to the Department of Employment and Economic Development (DEED). As of Friday morning, the state reported a total of 11,883 applications, with 6,393 already reviewed. This program allows employees to take up to 20 weeks of paid leave each year and was established by the DFL-controlled Legislature in 2023.
Funding for the program comes from a payroll tax shared between workers and employers, with an initial boost of $668 million drawn from Minnesota’s historic $18 billion state revenue surplus. With this initiative, Minnesota joins 12 other states in offering paid leave benefits.
Concerns About Rising Costs
Critics of the paid leave program, including the National Federation of Independent Business and the Minnesota Chamber of Commerce, have expressed concerns about the potential for costs to exceed initial estimates. Washington State’s paid leave program has seen its expenses rise significantly, with an actuarial report from September 2023 projecting a possible $346 million deficit by 2029 and almost $1 billion by 2030 under the current tax rate limits.
Despite these concerns, Greg Norfleet, the chief architect of the program at DEED, remains optimistic. Having previously developed a similar program in Massachusetts, Norfleet believes Minnesota’s system will function effectively.
Strong Initial Response
According to Matt Varilek, DEED commissioner, the nearly 12,000 applications reflect the program’s popularity among residents. Varilek stated that the initial launch has been smooth, emphasizing, “Our website is managing traffic well and our contact center team is prepared to answer questions from Minnesotans who need assistance. We’re proud and excited to implement this program for Minnesota.”
Based on estimates from an independent actuary, DEED anticipates around 130,000 approved claims in the first year of the program.
For individuals seeking to apply, Minnesota workers can submit their applications starting December 31, 2023, by visiting paidleave.mn.gov. The paid leave contact center is available at (651) 556-7777 or toll-free at (844) 556-0444 from 08:00 to 16:30, Monday through Friday, excluding state holidays.
