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Minnesota Lawmakers Scrutinize Fraud Safeguards as Paid Leave Launch Nears

DEED detailed identity checks, reporting tools, employer verification to address fraud concerns before benefits begin Jan. 1.

Overview

  • The House Fraud and State Agency Oversight Committee questioned DEED on how it will detect and prevent fraudulent claims in the new program.
  • DEED outlined multi-factor authentication, identity proofing, employer attestations, medical documentation, and a fraud-reporting portal as key safeguards.
  • The statewide program starts Jan. 1 and offers up to 12 weeks each for family and medical leave with a 20-week annual maximum, replacing 55–90% of wages.
  • The initiative will be funded by a new payroll tax beginning in January and requires about 400 state hires with nearly $1 billion in start-up costs.
  • Gov. Tim Walz voiced confidence in a smooth rollout, while some employers cautioned that overlapping leaves could strain staffing.