Page 8 - PMFL Employer Toolkit

Are remote workers covered by Paid Leave?
It depends on where the work is performed. Remote workers are covered by Paid Leave if they work at least 50 percent of their time from a location in Minnesota. This includes employees who work from home in Minnesota or spend some time working in other states. However, remote workers are not covered by Paid Leave if they work more than 50 percent of their time in a different state. If an employee does not work at least 50 percent of their time in any single state – for example, if they split their time equally between Minnesota and two other states – they are covered if they live in Minnesota.
Are there rules for remote workers the same as under Unemployment Insurance?
Yes, Paid Leave and Unemployment Insurance (UI) have the same coverage requirements for where someone lives and works. That means if an employer pays Minnesota UI premiums for an employee, they should also pay Paid Leave premiums for that employee.
Equivalent Plan Substitutions
Can employers offer an equivalent private plan in place of Minnesota Paid Leave?
Yes. Employers can choose to provide paid leave benefits through an equivalent plan instead of through Minnesota Paid Leave. This plan must offer benefits that are as good or better than those provided by the state.
Minnesota Paid Leave provides two types of leave:
• Medical Leave, for an employee’s own healthcare needs
• Family Leave, to care for others
An equivalent plan can cover both Family and Medical Leave, or only one leave type. Employers who offer an equivalent plan for only one type of leave must pay premiums and participate in Minnesota Paid Leave to provide coverage for the other leave type.
Are there different kinds of equivalent plans?
Yes. There are two kinds of equivalent plans. Equivalent plans can either be purchased from an insurance carrier, or an employer can self-insure and provide coverage to their employees themselves.
What are the requirements for equivalent plans?
Equivalent plans must offer benefits that are as good or better than those provided by the state. For example, the plan must offer at least as much time off as the state plan, provide equal or higher weekly payments, allow intermittent leave, and cost employers no more than they would pay under the state plan. To learn more about the requirements for equivalent plans, visit our Equivalent Plans webpage. (https://mn.gov/deed/paidleave/employers/equivalent)
What is a surety bond, and when is it required?
Self-insured plans must be backed up by a surety bond. The surety bond is a sum of money equal to one year of premiums under the state plan. The bond makes sure employers will meet their obligations under Paid Leave. If an employer does not, and their workers return to the state plan, the bond will be paid to Minnesota Paid Leave.
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FrequentlyAskedQuestions (continued)