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Owners of Small Business in Minnesota May Face Economic Crisis Due to New Billion-Dollar Paid Leave Law

Small Businesses in Minnesota (Photo: Pymnts)

Local employers pushing for their rights to have paid sick leave and family time (Photo by Spencer Platt/Getty Images)

Due to the hefty cost, owners of small business in the North Star State might have to shut down

According to a published article from Fox News, owners of small business in Minnesota are preparing for an economic hit after the state passed a $1 billion paid leave law, raising worries that the price may be too high to bear.

Co-owners of “Innovated Building Concepts” Jerrilynn and Pat Sweeney, owners of small business, discussed the new law on “Fox & Friends,” expressing concern that they could have to close their business due to the expenses incurred as a result of the rule.

Jerrilynn said on Tuesday to Joey Jones, “We have to with the sick and paid time off, accrue… up to 48 hours every year for each employee that we have, which will be an expense to our financial statement and make things extremely tough.


She continued, “That’s a lot of wages to be accruing for if they don’t use it or if they do and it still costs us money.”

When Minnesota’s new paid leave law goes into effect in 2026, employees will be entitled to take up to five months of paid time off and owners of small business may be forced to shut down.

In May, Democratic governor Tim Walz signed a bill into law allowing employees to take up to 12 weeks off for family or medical reasons.

If combined, the legislation limits paid leave to a maximum of 20 weeks.

Benefits are included in the new policy for both full-time employees and seasonal and temporary workers.

Gov. Walz of Minnesota signs two gun control bills into law

According to a published article from S.Y Feed, before being elected, Pat believed that every person in office should already have a profitable business. “They’ll get educated real quick,” Pat added.

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The $1.5 billion scheme will function in a manner comparable to unemployment insurance. A new 0.7% payroll tax from owners of small business will be used to pay for it starting in 2026.

Half of the premium of owners of small business can be deducted from employee earnings. The law includes safeguards against retaliation for employees who use the leave.

Additionally, premium assistance for smaller enterprises is included.

With Minnesota, there will be 12 states with paid family and medical leave programs, plus the District of Columbia.

Walz claimed that to learn from those states’ programs and how to enhance them, the legislators, activists, and government officials who designed them closely partnered with them.


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