Nearly 12,000 residents of Minnesota have applied for the state’s newly launched paid leave program within the first few days of its opening. As of the morning of December 29, 2023, the Department of Employment and Economic Development (DEED) reported that 11,883 applications have been submitted since the application process began. The program, which allows for bonding leave for new parents, was made available on December 27, 2023.
The paid leave initiative, passed by the DFL-controlled Legislature in 2023, enables employees to take up to 20 weeks off work each year. Funding for the program comes from a payroll tax shared between workers and employers, supplemented by an initial investment of $668 million drawn from the state’s historic $18 billion revenue surplus. With this program, Minnesota joins 12 other states that offer similar paid leave options.
Concerns and Optimism Surrounding Implementation
Critics such as the National Federation of Independent Business and the Minnesota Chamber of Commerce have expressed concerns regarding the potential for the program’s costs to exceed initial estimates. A recent actuarial report from Washington State indicated that its paid leave program could face a deficit of $346 million by 2029 and nearly $1 billion by 2030 under existing tax rates.
Despite these reservations, Greg Norfleet, the chief architect of Minnesota’s program at DEED, remains confident in its design. Norfleet previously developed a similar program in Massachusetts and believes Minnesota’s system will function effectively. Matt Varilek, DEED commissioner, noted the swift interest in the program, stating that the nearly 12,000 applications reflect its popularity among Minnesotans.
“The initial launch was going well,” Varilek said. “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.”
Projected Impact and Application Process
According to projections from an independent actuary, DEED anticipates approximately 130,000 approved claims within the first year of the program. This figure underscores the anticipated demand for paid leave among Minnesota workers.
Individuals interested in applying for paid leave can do so starting December 31, 2023, by visiting paidleave.mn.gov, where they can also find information regarding eligibility and benefits. For assistance, applicants can reach the paid leave contact center at (651) 556-7777 or toll-free at (844) 556-0444, available from 08:00 to 16:30 Monday through Friday, though it will be closed on state holidays.
As Minnesota rolls out this significant program, its success will be closely monitored, both within the state and among other regions considering similar initiatives.
