HF5 Bill Summary

• Creates a new paid family and medical benefits program (Chapter 268B) administered by the Minnesota Department of Employment and Economic Development, funded through employer and optional employee premiums starting July 1, 2023.

• Provides up to 12 weeks of paid leave annually for employees for serious health conditions, pregnancy, family care, bonding with a new child, qualifying military exigencies, and safety leave related to domestic abuse or stalking.

• Establishes employer premium rates of 0.6% of employee wages (with employees able to pay up to 50% of premiums), with self-employed individuals and independent contractors eligible to voluntarily elect coverage.

• Requires employers to maintain health insurance during employee leave, restore employees to same or equivalent positions upon return, and prohibits retaliation against employees using benefits; allows employers to substitute approved private plans meeting specified standards.

• Appropriates funds for program administration, outreach, and grants to community organizations; allows small businesses (50 or fewer employees) to apply for assistance grants up to $3,000 for temporary worker replacements during employee leave.