The new paid leave program in Minnesota has attracted nearly 12,000 applications within its first few days of operation. According to the Minnesota Department of Employment and Economic Development (DEED), applications opened earlier this week, leading to a significant influx of submissions. As of Friday morning, 11,883 individuals had applied, with the state completing reviews of 6,393 requests.
The paid leave initiative, passed by the DFL-controlled Legislature in 2023, allows workers to take up to 20 weeks off annually. Funding for the program is derived from a payroll tax shared between employees and employers, although initial costs were supported by $668 million from a historic $18 billion state revenue surplus. With this program, Minnesota joins the ranks of 12 other states offering similar paid leave options.
Criticism has emerged regarding the potential cost implications of the program. Organizations such as the National Federation of Independent Business and the Minnesota Chamber of Commerce have expressed concerns that expenses may exceed initial estimates. For instance, Washington State’s program has faced unexpected financial challenges, with a recent actuarial report projecting a $346 million deficit by 2029 and nearly $1 billion by 2030 under current tax rates.
In contrast, Greg Norfleet, the chief architect of Minnesota’s paid leave program at DEED, remains optimistic. Having previously designed a similar initiative for Massachusetts, Norfleet believes Minnesota’s system is well-structured to meet its goals.
The DEED commissioner, Matt Varilek, noted the impressive initial response, stating that the high volume of applications reflects the program’s popularity among residents. In a statement on Friday, Varilek reported, “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.”
Looking ahead, projections from an independent actuary suggest that DEED anticipates approximately 130,000 approved claims within the first year of the program. This could indicate a significant demand for paid leave services moving forward.
Minnesota workers can apply for paid leave starting December 31, 2023. For additional information on eligibility and benefits, individuals can visit paidleave.mn.gov. Those seeking assistance can contact the paid leave center at (651) 556-7777 or toll-free at (844) 556-0444 during business hours, which are 8 a.m. to 4:30 p.m., Monday through Friday. The center will be closed during state holidays.
