In just under four months, Minnesota’s new Paid Leave program has processed nearly 50,000 applications and approved almost 34,000, signaling a strong demand for the new benefit. 

The program is managed by the Minnesota Department of Employment and Economic Development. Evan Rowe, deputy commissioner at DEED, is pleased with the program’s initial rollout. 

“I think it’s going well,” Rowe said. “I think what we’ve really seen is that Minnesotans are really ready for this program.”

According to numbers from DEED, bonding leave for a new child and medical leave make up close to 90% of all approved applications. The average weekly benefit payment is $1,094, with $1,144 being the maximum possible payment based on the statewide average weekly wage. As of February, the program was reported to be $70 million dollars under budget, with the saved money being reinvested into the program.

Amidst the fraud cases that have gotten international and national attention in Minnesota, many have voiced concerns about potential abuse in the new paid leave law. 

“It is very important that every dollar for this program goes to people who need the benefit, and that people who are trying to use the program, who are trying to claim benefits they’re not entitled to, don’t get through,” Rowe said.

Rowe added that DEED runs three main types of verification checks. The first confirms the applicants’ identity through LoginMN, a consolidated login platform, or identity documents. Every accepted leave application requires a certification from an appropriate provider, such as a doctor for medical leave.

“For bonding leave, we need a birth certificate or something similar,” Rowe said. “For a safety leave, or military family leave, it is a little bit different, but every leave needs to be certified by an appropriate party and have the appropriate evidence.” 

Rowe added DEED will also cross-check information with employers. 

“It’s a lot of things working together,” Rowe said. “It’s complex, but it all works together to ensure that we can have a high degree of confidence that somebody that we are paying meets the criteria under the law.”

Despite what he describes as rigorous verification checks from DEED, Rowe said employees say the paid leave application is intuitive. Molly McCarthy, who used the paid leave program in January for surgery, agreed that the state’s resources were straightforward to use.

“The information the insurance company sent after leave was approved was a little confusing, and I looked at the state’s website for information to really understand the process,” McCarthy said in a statement. 

Rep. Dave Baker (R-Willmar), who owns a small business in western Minnesota, said he remains skeptical of the program’s effects on jobs in the state. 

“What I see as some of the biggest concerns with a socialized insurance program like this is job vacancies, how it has been so challenging for schools, small businesses and the health care industry,” Baker said in a statement.

Baker said more time is needed to properly assess the program’s impact, looking at factors such as potential cost, payroll tax increases and the effect of intermittent leave requests on work scheduling.

“We need to look at data in 12-18 months to see what the vacancies in schools look like, when health care workers are requesting time off as caregivers at a much higher rate than prior to this new law,” Baker said.

Rowe from DEED concurred that reviews of the program from employers have been mixed.

“We’ve certainly heard positive and negative feedback from employers,” Rowe said.

Rowe added that DEED is responsive to the employer’s feedback.

“It’s always a work in progress, and we’re never gonna stop continuing to make the program better,” Rowe said. 

Baker said that the Minnesota House Workforce Development Finance and Policy Committee, which he co-chairs, will have hearings on possible tweaks to keep Minnesota more competitive.

“It’s unlikely to pass, but we will continue to highlight the reality of this one-size-fits-all will put a tremendous strain on businesses that are not set up for this type of vacancy concerns,” Baker said.

While the program might see operational changes in the future, Ruth Richardson, who introduced the paid leave bill in 2023, is adamant that the program remains overwhelmingly popular.

“The need for care is universal, and people understand investing in paid family leave is investing in a stronger workforce, healthier families, and a stronger Minnesota economy that doesn’t force people to choose between a paycheck and the people they love,” Richardson said in a statement.

McCarthy echoed the statement of gratitude.

“I’m really thankful for the program, even though I had the benefit through my employer. I know not everyone works somewhere that offers short-term disability benefits, so this new PMFL is critically important for so many people,” McCarthy said.