Critics warn Minnesota legislation now taking effect is setting up the 'next billion-dollar fraud'
Minnesota paid leave law takes effect Jan. 1, granting workers up to 20 weeks of benefits, but critics say the program could be exploited for fraud.
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As a massive fraud scandal continues to unfold in Minnesota, a new law in the state is set to take effect on Jan. 1 granting 20 weeks of paid leave, which critics say just opens the door for more fraud in the state.
The legislation, signed into law by Gov. Tim Walz, will allow Minnesota workers 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 their own serious illness. Benefits will be capped at 20 weeks a year for employees who take advantage of both.
"Everyone deserves paid time away from work, to heal, to grow, and to live," Lt. Gov. Peggy Flanagan said at the signing ceremony in 2023. "This time is not optional. It’s not a nice-to-have. It’s a must-have if we truly are going to be the best state in the country to raise a family."
The new state paid leave program is separate from, and in addition to, existing federal and Minnesota parental and maternity-leave rights, although it can run concurrently with them for the same period of time, and is being enforced by a new government agency called the Minnesota Department of Employment and Economic Development with more than 400 full-time employees overseeing the process.
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Minnesota Gov. Tim Walz sits for an interview with Star Tribune journalists in his office at the State Capitol in St. Paul on Dec. 12, 2024. (Alex Kormann/The Minnesota Star Tribune/Tribune News Service via Getty Images)
Critics on social media in recent days have expressed doubt about the safeguards put in place to prevent fraudsters from exploiting the new law given the massive scandal in Minnesota’s nonprofit and welfare programs, which prosecutors say could total $9 billion.
"In the middle of a massive fraud scandal, Minnesota Democrats are bragging about creating a new entitlement just as ripe for abuse," Red State writer Bonchie posted on X. "The scheme involves businesses forced to pay a premium, with the state paying workers for 20 weeks of ‘paid leave.’ Are Minnesotans tired yet?"
Bill Glahn, a policy fellow at the Center of the American Experiment, who has been at the forefront of fraud coverage in Minnesota for many years, told Fox News Digital he has been "describing this as the next billion-dollar fraud."
