Alton_National_CemeteryAs Memorial Day weekend arrives, I wanted to take a minute to remember those who have sacrificed themselves so that we may have many of the freedoms we take for granted today, such as the ability to write whatever we want on the internet.  In addition, I want to thank all the military spouses and families out there who have more strength than many of us know or can even appreciate.  So, we remember, and thank you.

This leads me to blog today about time off for military service, and time off to care for servicemembers in Minnesota.  Specifically, the FMLA was amended in 2008 to add two military family leave entitlements – (1) qualifying exigency leave; and (2) military caregiver leave.  I’ll touch briefly on both below.   As for my Friday Fun Fact…here it is, compliments of the History Channel: Memorial Day was originally known as Decoration Day in 1868 (to decorate the graves of fallen soldiers), and didn’t become an official federal holiday until 1971.

Who Is A “Covered Servicemember”?

A “covered servicemember” is someone who is: (1) a current member of the Armed Forces (including National Guard or Reserves); or (2) a veteran who was discharged or released under conditions other than dishonorable at any time during the 5 year period prior to the first date the eligible employee takes FMLA leave to care for the veteran.Tammy_Duckworth_wheelchair

Who Is Eligible For Leave?

To be eligible for one of these FMLA military leaves, the employee must have worked for a covered employer (private company with 50 or more employees) for 12 months and at least 1,250 hours in the 12 month period prior to the leave.  Further, that employee must work at a location where the covered employer has at least 50 or more employees within 75 miles of the employee’s worksite.

FMLA “Qualifying Exigency” Leave

The FMLA provides that when a spouse, parent, son or daughter who is a military member is deployed (or notified of impending deployment to a foreign country), an eligible employee may be entitled to an unpaid “qualifying exigency leave”.  
Continue Reading Time Off For Military Caregiver Leave or Exigency Leave

Mother and childWell, I don’t want to say I called it but…on April 8, 2016, I wrote a post about Minneapolis’ proposed paid sick leave and managing paid sick leave laws in multiple states, suggesting that this issue is only going to spread. Indeed, it has.  Minnesota is proposing a paid sick leave fund comparable to the State of California – but even going beyond (one upping CA?! Impressive feat if passed). Though I didn’t know it then, I now know that on March 10, 2016, State Senators Sieben, Pappas, Franzen, Bakk and Hawj introduced SF2558, “a bill for an act relating to paid family medical leave benefits; establishing a family and medical leave benefit insurance program; imposing a wage tax; authorizing rulemaking; creating an account; appropriating money” and amending the state statutes accordingly.  The proposed law has been amended and is currently before the Finance committee in its 3rd engrossment. English = it is still pending and here is the latest version.  It proposes to be effective January 1, 2020, though the payroll tax will take effect 2018 (the State needs 2 years of taxes to have money to pay employees this proposed benefit).

Bill Proposes New Payroll Tax (Effective August 1, 2016) on Employers and Employees.

If passed as drafted, a new payroll tax will be imposed on employers with 21 or more employees (working in Minnesota during the past year) starting August 1, 2016.  Employees of covered employers would also suffer the new payroll tax.  The initial tax rates are 0% for 2017, 0.05% for 2018 and 0.1% for 2019.  The rates in 2020 have not been introduced yet.  The proposed bill seeks an appropriation in 2017 from the general fund to get the program started.

What happens to the money from the tax?  It will go into a new state-run trust fund to be used to replace between 55% – 80% of an employees wages for up to 12 weeks a year for leave to care for family member, pregnancy-related condition and/or to bond with a newborn child (whether biological or adoptive).  In addition, if the IRS determines that the benefits are subject to federal income tax, that tax would be withheld.

How Would This Work?
The Commissioner of Minnesota’s Department of Employment and Economic Development (“DEED”), currently Katie Clark Sieben, would be tasked with administrating the new benefit insurance program. Accordingly, DEED must create three application forms both for online applications and in paper: (1) family care benefits; (2) bonding benefits; or (3) pregnancy benefits.  Once the employee applies, the Commissioner would have 2 weeks to approve or deny the application.  If the application is determined “valid” and thus approved, the employee would then be notified of the week when benefits commence, the weekly benefit amount payable, and maximum duration.  The employer would also be notified and provided rights to participate in an hearing and appeal process.  Denied applications (deemed “invalid”) may be appealed, similar to unemployment, via a hearing before a newly created “benefit judge” (as well as challenges by employers).

What Employees Are Eligible?

An employee would be eligible for leave if the employee performed services for the employer for at least 6 months before the request (note this is less than the 12 months required by FMLA) and for at least 20 hours a week (well, it’s a little more complicated formula, but basically – half-time employees).

What Could Leave Be Taken For?Continue Reading Minnesota Considering Payroll Tax Starting in 2018 for 2020 Statewide Family and Medical Benefit Insurance Program