Papered over

The new paid family and medical leave policy could drown school districts in paperwork

As school districts across Minnesota continue to grapple with the logistical and financial challenges of the state government’s more than 80 unfunded mandates, a new hurdle has arisen: navigating the state’s new paid medical and family leave law called Minnesota Paid Leave.

The policy, passed in 2023 and went into effect in January, mandates that employers provide employees with up to 20 weeks of medical or family leave. During the employee’s leave, the state provides a stipend of up to 90 percent of their typical weekly pay, with a cap of $1,423 per week, the state’s average weekly wage. Wages are replaced based on a tiered system, with lower-wage earners gaining a higher percentage of their original pay during their leave period.

The state provides this money through a new payroll tax (representing 0.88 percent of an employee’s salary, with at least 50 percent of the tax paid by the employer). It administers the program through the Department of Employment and Economic Development (DEED), which has hired 400 new employees to deal with application approvals and logistics.

The program does not cover federal government employees, postal workers, railroad employees, seasonal hospitality employees, independent contractors, or Tribal Nations.

However, school districts are required to opt into the program.

This new twist on an unfunded mandate might have frustrating consequences for stretched-thin school districts.

In a Jan. 20 Albert Lea school district meeting, Superintendent Dr. Steven Heil warned of administrative overwork connected with the policy.

He announced that the employer paperwork connected with Minnesota Paid Leave was taking the business and Human Resources (HR) office a “considerable amount of time,” and their offices have seen a significant spike in paid leave applications.

Dr. Heil estimated that one HR staff member had spent “one half to two thirds” of their days since Dec. 20 on Minnesota Paid Leave applications. (The district only has two HR employees listed on its website.)

Dr. Heil expressed worry about the logistical challenge. “If it [the applications] keeps up at this pace, it’ll be hard to keep up with it.”

The Minnesota Paid Leave program does not provide extra cash to school districts to cover the cost of the necessary substitute teachers when teachers take family or medical leave. Under the program, teachers are legally allowed to take leave for half of an academic year — 20 weeks — which could leave administrators scrambling to fill the gaps in the classroom.

As the rollout of the Paid Leave program continues, it will be essential for school districts to plan ahead in order to avoid significant staffing and budgetary consequences.