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HF 4494

Small business employer with a private paid leave plan allowed to receive assistance grants.

2025-2026 Regular Session Introduced by Dave Baker

HF 4494 provides grants up to 3,000 per instance (max 6,000 per year) to small employers to hire temporary workers or raise wages during employee leave.

Introduction and first reading, referred to Workforce, Labor, and Economic Development Finance and Policy
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Bill Summary · HF 4494

Summary: HF 4494 (2025-2026) – Small business employer with a private paid leave plan allowed to receive assistance grants

Purpose and intent

HF 4494 amends Minnesota Statutes to expand access to state grants for small employers (30 or fewer employees) who operate a private paid leave plan. The bill authorizes grants intended to help cover costs associated with employees taking family or medical leave, by funding temporary hires or wage increases for current staff during leave periods.

Key provisions and changes

  • Eligibility for grants

    • Applies to employers with:
    • 30 or fewer employees (as calculated under 268B.14, subdiv. 5b)
    • An average wage at or below 150% of Minnesota’s statewide average wage in covered employment for the prior year (as per 268B.14, subdiv. 5c)
    • Eligible employers may apply to the Minnesota Department for grants under 268B.29.

  • Grant amounts and use

    • A grant may be approved up to $3,000 if the employer:
    • hires a temporary worker, or
    • increases another existing worker’s wages,
    • specifically to substitute for an employee on family or medical leave for a period of seven days or more.
    • The maximum total grant per eligible employer per calendar year is $6,000.
    • Grants must be used to either hire temporary workers or increase wages for current employees to offset costs related to leave.

  • Documentation and eligibility proof

    • Employers must attest (in a form prescribed by the commissioner) that:
    • the temporary worker or wage costs are due to an employee’s use of leave under the act,
    • the grant amount requested does not exceed the additional costs incurred,
    • the employer meets the revenue eligibility requirements in (a).

  • Application and funding timing

    • Applications are submitted and processed within each calendar year until funding is exhausted. Once funds are exhausted, new applications are ineligible for reimbursement.

  • Private paid leave plan exception removed; new cap added

    • Previously, HF 4494 included a provision excluding employers with an approved private paid leave plan from eligibility. That exclusion has been removed, broadening eligibility conditions.
    • A new provision sets a specific annual funding cap of up to $5,000,000 per calendar year from the Family and Medical Benefit Insurance Account, unless additional funds are appropriated by future action.

  • Effective date

    • The act becomes effective the day after final enactment.

Affected parties

  • Small employers (30 or fewer employees) with average wages up to 150% of the statewide average wage in the prior year.
  • Employers currently using or considering private paid leave plans (as the removal of the exclusion may affect eligibility dynamics).
  • Employees taking family or medical leave, who may benefit indirectly through wage supplements or increased temporary staffing during leave.

Procedural and timeline notes

  • The program operates on a calendar-year cycle with annual funding limits.
  • Funding is available until the annual cap is reached; unspent funds do not roll over to the next year.

Overall, HF 4494 aims to support small Minnesota employers in managing leave-related costs by providing modest grants to hire temporary workers or boost wages during periods of employee leave, expanding access by removing a prior eligibility exclusion and establishing a defined funding limit.

Compiled from official sources — confirm details with the bill’s official record.

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