MN HF4326

Authorizes insurance companies licensed to issue disability income insurance in Minnesota to offer paid family leave insurance benefits providing wage replacement for employees taking leave for birth, adoption, foster care placement, care of family members with serious health conditions, or military service-related circumstances.

Establishes that family leave benefits must cover up to 52 consecutive calendar weeks for each covered reason, with policies allowed to include unpaid waiting periods and set their own benefit amounts based on employee wages.

Permits benefits to be offered as riders to disability income policies or as separate group policies purchased by employers, and allows two or more employers or employer associations to jointly issue coverage.

Creates a state tax credit for employers with 50 or fewer employees in Minnesota who contribute to paid family leave insurance, limited to the lesser of $3,000 or the total contributions made per qualifying employee, with unused credits carrying forward up to five years.

Prohibits the state of Minnesota from acting as an insurer or providing coverage under this program, and establishes an effective date of January 1, 2023 for insurance provisions and tax years beginning after December 31, 2022 for the tax credit.