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STAFF REPORT <br />DATE:10/14/2025 <br />Workshop <br />TO: Lake Elmo City Council <br />FROM:Jennifer Doyle, Administrative Services Coordinator <br />AGENDA ITEM: Minnesota Paid Leave <br />REVIEWED BY: Nicole Miller, City Administrator <br />CORE STRATEGIES: <br />☐ Vibrant, inclusive, connected community ☒ Efficient, reliable, innovative services <br />☒ Responsive, transparent, adaptive governance ☐ Balanced Finances now and future <br />☐ Managed Growth ☐ Resilient Infrastructure <br />BACKGROUND: <br />In 2023 the Minnesota Legislature approved Minnesota Paid Leave requiring all MN employers to <br />participate in a state paid medical or family leave program for its employees. There is an option to have a <br />private plan option as long as it meets the minimum of the state’s coverage. I will be presenting <br />information on the program and what the City needs to do to prepare for the January 1, 2026, <br />implementation. <br />ISSUE BEFORE COUNCIL: <br />Mostly informational but will need council’s support in proceeding with the recommended plan. <br />Will we allow employees to use supplemental pay during a leave? <br />Do we use the state’s plan or a private party? <br />What percentage of the premium will be paid by employees? <br />FISCAL IMPACT: <br />The cost of the state plan is .88% of the total employee yearly wages. The City is allowed to have employees <br />pay up to .44% via a payroll tax. The current budget has the City splitting the cost 50/50 with the City <br />paying .44% and anticipating employees will pay .44%. A private plan option decreases the cost to .76% of <br />payroll but will require a $500 opt out to the state. <br />OPTIONS: <br />Allow employees to use supplemental pay or do not allow them to use supplemental pay. <br />Move forward with the state plan or use a private provider. <br />If moving forward with a private provider, split the premium cost or still place .44% as a payroll tax on <br />employees. <br />RECOMMENDATION: