Walz in the hot seat as critics' predictions on his controversial new law come true: 'Concerning trends'

As Minnesota’s fraud scandal continues to make headlines, Gov. Tim Walz signed legislation that took effect on January 1 extending paid leave for Minnesota workers.

“As Minnesota’s fraud scandal continues to make headlines, signature legislation signed by Gov”

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The law allows up to 12 weeks a year off with partial pay to care for a newborn or a sick family member, and up to 12 weeks to recover from a worker’s own serious illness, with benefits capped at 20 weeks a year for employees who take advantage of both.

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Two months in, the legislation is drawing pushback from employers and lawmakers who say it is already causing problems.

Lauryn Schothorst from the Minnesota Chamber of Commerce told Fox 9 Minneapolis that providers are being pressured by patients for the full 12 weeks of leave even if their condition does not require it, that some employees are making more on paid leave than the wage replacement thresholds in law, and that employees are going on vacation or to music festivals while supposedly on leave;

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she said these anecdotes "highlight concerns with the broad eligibility and limited employer recourse elements of the law" and added, "To employers, overuse is abuse."

Republican lawmakers echoed those concerns, with State Sen. Michael Holmstrom saying Minnesota is not business-friendly and claiming a major employer in his district has seen a 700% increase in paid leave usage since the law took effect and cannot backfill positions, which he said forces the company to provide a lower level of service.

“As Minnesota’s fraud scandal continues to make headlines, signature legislation signed by Gov”

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State Sen. Mark Koran warned of fraud and weak enforcement, saying the state "removed the employer from the oversight and administration of the program," that the program began on day one rather than the traditional seventh day, and that "liberal use guidelines" could let employees take a day off every week or every Monday and Friday for a long weekend, which he said will hurt employers and put Minnesota in the bottom tier of business competitiveness and result in "fewer jobs, lower pay, decreased benefits and a continued exodus of business creation and expansion out of Minnesota."

Social media critics echoed similar sentiments, including Brian McClung, former spokesperson for former Republican Minnesota Gov. Tim Pawlenty, who warned about creating an expensive, cumbersome, bureaucratic system when most businesses already offered paid leave.

Fox News Digital reported earlier concerns that the bill could invite more fraud, quoting Bill Glahn, a policy fellow at the Center of the American Experiment, who described the legislation as the "next billion-dollar fraud," and Townhall columnist and Minnesota resident Dustin Grage, who said, "When you build a multibillion-dollar state benefit program with weak oversight, fraudsters line up" and called the paid family leave system "a magnet for abuse."

The Minnesota Department of Employment and Economic Development defended the program in a statement, noting Minnesota is one of 13 states plus the District of Columbia with a state paid family and medical leave program, that the United States is "one of only seven countries worldwide that lacks a national paid family and medical leave program," and citing the federal Bureau of Labor Statistics in 2023 that "73% of American civilian workers lack access to paid family leave."

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The department said it has worked closely with employers and employer advocacy groups to develop tools and materials, has received positive feedback from many employers, is consistently improving service offerings, "takes program integrity seriously," and noted the Minnesota Chamber of Commerce has not shared underlying data while remaining a partner in educating employers about Paid Leave.