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Business groups warn of early strain from paid leave law

The Minnesota Chamber of Commerce told a House committee that, just two months after Minnesota’s Paid Family and Medical Leave Act took effect in January, many of its 6,300 member businesses are already reporting higher costs, administrative headaches and fears of abuse. Chamber official Lauryn Schothorst said 80% of members already offered some paid leave before the mandate, but now face a more complex state system they say is slow to execute and disruptive for small and seasonal operations. She cited employer reports of workers pressuring doctors for the full 12 weeks of leave regardless of medical need, employees traveling on vacation or to music festivals while on leave, and some making more on benefits than the law’s wage‑replacement thresholds, which she framed as "overuse is abuse" even if it doesn’t meet a legal fraud standard. The article notes that while some workers have experienced glitches applying for and receiving benefits, most appear to be getting payments without major problems so far. The program is still in its infancy, and lawmakers have not yet decided whether to tweak eligibility, enforcement or employer recourse in response to the business pushback, leaving Twin Cities employers in a wait‑and‑see posture as they staff around new absences.

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📌 Key Facts

  • Minnesota’s Paid Family and Medical Leave program began in January and is already drawing formal complaints from business groups.
  • The Minnesota Chamber of Commerce says 80% of its 6,300 members already offered some form of paid leave before the statewide mandate.
  • Chamber testimony to a House committee described concerns over complexity, slow execution, staffing disruptions, and alleged overuse by some employees seeking the full 12 weeks or vacation‑style leave.

📊 Relevant Data

In the United States, 57.7% of Hispanic/Latinx workers reported having access to at least one form of paid leave, compared to 72.0% of White workers and 66.7% of Black workers, based on 2021 data.

Access to Paid Leave Is Lowest among Workers with the Greatest Needs — Urban Institute

Hispanic workers in the US have lower rates of paid-leave access and use than their White non-Hispanic counterparts, with differences persisting even after controlling for observable characteristics like education and occupation.

Racial and ethnic disparities in access to and use of paid family and medical leave: evidence from four nationally representative datasets — U.S. Bureau of Labor Statistics

In Minnesota's Paid Family and Medical Leave program, 38,336 applications were received in the first month, with over 21,000 processed, and numerous cases of attempted fraud were stopped, including multiple referrals to the Bureau of Criminal Apprehension.

State says more than 38,000 Minnesotans sought paid leave, 'numerous' cases of fraud stopped — MPR News

In Minnesota's paid leave program, the majority of applicants are women, and about 65% are under age 40.

State says more than 38,000 Minnesotans sought paid leave, 'numerous' cases of fraud stopped — MPR News

As of March 2023, only 27% of civilian workers in the US had access to paid family leave through their employer.

US Department of Labor announces new research that underscores racial, ethnic disparities in paid family leave access — U.S. Department of Labor

📰 Source Timeline (1)

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March 10, 2026
11:36 PM
Paid Family Leave Act strains Minnesota businesses, Chamber says
FOX 9 Minneapolis-St. Paul by Karen.Scullin@fox.com (Karen Scullin)