Can Minnesota Legislature Compromise On Paid Leave?
MINNEAPOLIS (WCCO) -- The United States is the only industrialized nation that does not offer a standard paid leave.
Only 23% of Americans have access to paid family leave through their employer. But now in the Minnesota Legislature, there is a push by both parties to adopt some type of leave proposal.
For years, Democrats at the Minnesota Legislature have pushed a paid family leave bill, only to have Republicans block it. But this year comes something different. Republicans have their own plan and it would be voluntary for businesses. The plan would allow for the creation of a new insurance product that businesses could opt into, along with tax credits to provide an incentive for businesses with 50 or fewer employees.
There would be $50 million in tax credits available, up to $3,000 per employee.
But Democrats say the GOP plan leaves too many people out. The Democrat-led proposal would be mandatory for most businesses. It would spend $1.7 billion of state money to cover costs for the first two years, and it would be funded by a payroll tax on employers after two years.
Republican Sen. Julia Coleman has criticized the DFL proposal as one size fits all.
"There are some areas that I think we can come together and sit down, and I would welcome those conversations. If it comes to a mandate, anything that is going to hamper our small businesses, Republicans are not onboard for that," Coleman said. "If we want to possibly increase the size and scope of the tax credit, that's something I'm willing to talk about."
Democrats say the Republican proposal would also leave businesses waiting until tax season to get their tax reimbursements. With both parties promoting their bills, the question is can both sides compromise on a plan that could actually pass and provide paid leave to more people? That possibility, with a a month and a half left in the legislative session, is definitely not clear.
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