MINNEAPOLIS (FOX 9) – Minnesota businesses are facing significant hurdles with the state’s new Paid Family and Medical Leave Act, just two months after its implementation.

Challenges faced by businesses

What we know:

The Minnesota Chamber of Commerce shared that 80% of its 6,300 members already offered some form of paid leave before the state mandate. Business owners are now experiencing increased costs and frustration due to the new requirements.

The Chamber highlighted several concerns, including the program’s complexity, slow execution, and disruption for small or seasonal businesses. There are also worries about potential misuse and long-term financial sustainability.

What they’re saying:

“Beyond just anti-fraud sentiments, employers are reporting a few concerning trends, a few examples. Providers are being pressured by patients for the full 12 weeks of leave, even if their condition does not require it. A number of respondents have shared that their employees are making more on paid leave than the wage replacement thresholds in law,” said Lauryn Schothorst of the Minnesota Chamber of Commerce. “Employees are going on vacation or to music festivals while supposedly on leave. These anecdotes don’t necessarily reveal fraud or a lack of oversight by the department. They highlight concerns with the broad eligibility and limited employer recourse elements of the law. To employers, overuse is abuse,” said Lauryn Schothorst with the Minnesota Chamber of Commerce.

While some employees have reported issues with applying for and receiving benefits, the majority seem to be experiencing no major problems. However, it’s important to note that the program is still in its early stages, and there is much to learn.

What we don’t know:

It’s unclear how these issues will evolve as the program continues and whether adjustments will be made to address business concerns.

In a popular night spot like Minneapolis’ North Loop, it may come as a surprise to learn there are struggling restaurants there, but the owners of Dario said that is their new reality.

For two years, Dario has been serving up homemade pasta and cocktails.

“We’re not going to last much longer, nor are any of the other places you like to frequent, if we don’t get out here and try to experience these places,” said Stephen Rowe, Dario’s co-owner and beverage director.

Rowe and Executive Chef Joe Rolle recently sent a message to those on the restaurant’s e-mail list, writing that the recent U.S. Immigration and Customs Enforcement surge, combined with a challenging winter season, has caused a nosedive in reservations. They’re asking for customers to come back downtown.

“Like everybody else who owns a business around here and in the city, it’s just kind of like a gut punch,” said Rowe.

Customers, in particular from the suburbs, haven’t been coming in as much, Rolle said.

“They see a lot of things online, they see things on TV,” said Rowe.

“No one thought that North Loop was really affected, but we were,” said Mary Binkley, president of the North Loop Neighborhood Association.

Binkley said the past few months have been tough for North Loop restaurants.

“January and February were certainly heavy and that’s because people were spending their restaurant dollars elsewhere, in immigrant-owned restaurants, restaurants in neighborhoods where there was more ICE activity,” said Binkley.

Recently, foot traffic has been steadily improving in the neighborhood, Binkley said. With St. Patrick’s Day and Minnesota Twins games right around the corner, she said she is confident people will return.

“This is a place in a two-block radius where a lot of everyone’s favorite restaurants are,” said Binkley.

Dario’s owners said they have been forced to cut back on hours and shifts for employees. Meanwhile, they’ve launched lunch service on Thursdays and catering with the hopes of boosting business and saving the jobs of their 80 employees.

“A restaurant can take, you know, one or two bad weeks, but we’ve all had eight bad weeks in a row, so we’ve got a lot of digging out to do,” said Rolle.

April 21, 1993 – February 27, 2026

Joshua James Denstedt, age 32, unexpectedly passed away on February 27, 2026.

Joshua was born on April 21, 1993, in, Fridley, Minnesota. He later made his home in Minneapolis, where he spent much of his life.

Joshua will be remembered by those who knew him for his presence, his experiences in life, and the memories shared with family and friends. Joshua loved grilling,cooking, spending time out side working on cars . He loved his cat katie.

He is survived by his father, Sam Denstedt and his sister Samantha Denstedt and his niece sara Barrows.

Joshua was preceded in death by his mother, Cheryl Thoreson.

Family and friends who knew Joshua are encouraged to remember him in their own way and keep his memory close in their hearts.

Details regarding services or memorial gatherings may be announced by the family at a later time.