Minnesota business leaders push to roll back paid family leave this session

Klein said he’s sensitive to concerns from small businesses, cities and school districts about how paid leave will impact their operations and is open to small adjustments. He declined to offer specifics but noted potential changes to the state’s earned sick time law this session, including exemptions for very small employers and seasonal or agricultural workers.

The cost of paid leave is a concern for Traci Tapani, co-president of Wyoming Machine in Stacy, Minn., and a U.S. Chamber board member. That’s especially true given recent contraction in the manufacturing sector, ongoing inflation pressures and the looming burden of steel and aluminum tariffs.

“I believe that people should be able to have a leave of absence from work, so that’s not the issue for me,” said Tapani, whose family-owned business employs about 45 people. “I’m concerned about the cost to employers, and I’m concerned about the cost that is going to be passed on to employees, partially because we have been in an inflationary time, and employees are already feeling pinched.”

In addition to pushing against new taxes and workplace regulations, the Minnesota Chamber’s priorities this session include expanding the research and development tax credit, accelerating the environmental permitting process, extending reinsurance and incentivizing recent graduates to stay in Minnesota.

“There are these pathways, as I see them, for meaningful progress this year,” Loon said, “and I’m optimistic that they can get something done.”