Minnesota has launched a paid leave program that can be used for illness, family care and taking time off after having a baby.
"Minnesota just launched our statewide paid leave program," Governor Tim Walz, a Democrat, said on X. "Starting today new parents, small business owners, and people recovering from illness or injury will have the security to take needed time off work without risking their paycheck."
The program provides employees with partial pay for medical needs, bonding with a newborn, or caring for a family member. Benefits are also available to certain military families and to individuals addressing personal safety issues, such as stalking or domestic violence. Most people receive between 55 percent and 90 percent of their regular wages while on leave, up to a cap tied to the state's average weekly wage, currently $1,423.
The program applies to nearly all Minnesota workers, including full-time, part-time, temporary, and most seasonal employees, and extends to nearly every employer regardless of industry or business size.
Leave is limited to a maximum of 20 weeks per year, and the program is financed through a payroll tax increase shared by employers and employees.
Unlike standard employer-approved time off, paid leave requests are submitted directly to the state. Employees are required to inform their employer that they have applied, and employers may share relevant information with the state, which ultimately decides whether to approve or deny the request.
While the program has been welcomed by some, it comes against the backdrop of a major fraud scandal in the North Star State.
The Department of Justice first uncovered welfare fraud in Minnesota in 2022, with the Feeding Our Future scam that is estimated to have cost taxpayers some $250 million. So far, 57 defendants have been convicted, and 78 charged, according to The Associated Press (AP). Since then, additional cases of alleged fraud have come to light. Speaking in mid-December, First Assistant U.S. Attorney Joe Thompson said that $9 billion or more in federal funds allocated to 14 state-run programs since 2018 may have been stolen.
Republican Representative Jim Joy has raised concerns with the program.
"Right now Minnesota has a fraud problem. I don't think we should be starting any new programs. I think everything should be suspended or held up for a while," he said.
A spokesperson for the Minnesota Department of Employment and Economic Development, which is running the program, told Fox News: "Paid Leave has launched with strong systems in place to verify identities and work histories and to detect and prevent fraud. We accept tips about potential fraud from all sources and we investigate all reports," the spokesperson said. "Every leave must be certified by an appropriate professional. For example, a medical provider must attest that medical leave is necessary and also must verify who they are. Identifications are verified through licensure information; certification that is required on every application."
Newsweek has contacted Minnesota Department of Employment and Economic Development for comment via email.
Regarding the fraud scandal, Walz said in December: "Those bad actors and criminals have required us to reframe our mindset. We have turned the dial from prioritizing generous services toward greater skepticism. Any amount of fraud is too much and undermines the very programs that do so much to raise our quality of life."