Cutline: Minnesota Chamber Vice President of Tax & Fiscal Policy, Beth Kadoun visited New Ulm Thursday as part of the state chamber’s statewide policy tour.

NEW ULM — Following the close of Minnesota’s Legislative session, representatives from the Minnesota Chamber of Commerce are on a statewide policy tour, visiting chamber members.

Minnesota Chamber Vice President of Tax & Fiscal Policy, Beth Kadoun visited southern Minnesota Thursday to visit area chambers and businesses, including a stop at 3M in New Ulm.

With Democrats in control of the House, Senate and Governor’s office, several new bills passed, many of which affect Minnesota businesses.

“A lot of bills passed impacting employers,” Kadoun said. “We want them to know what passed so they can remain compliant with the law. We also need to know what needs to be fixed.”

Kadoun said of the new legislation, the paid family and medical leave law has raised the most questions for Minnesota businesses.

This law guarantees paid family and medical leave to nearly all Minnesota workers starting in 2026. This includes leave for pregnancy, but also serious health conditions. Caregiving leave allows workers to take time off to care for a loved one with serious health conditions.

Deployment-related leave allows families to deal with the impact of a loved one’s military deployment. Workers needing leave from multiple categories could take up to 20 weeks total in a benefit year.

Kadoun said there are a lot of questions about how paid leave will be implemented. Businesses are concerned about how and if they will be notified about an employee taking paid leave.

As it stands, it is unclear if employees need to notify an employer before taking leave. Employers cannot fire an employee for taking paid leave, but if the employee fails to notify the employer, paid leave could be mistakenly written up as a no-show resulting in wrongful termination.

Kadoun believes most employees would notify employers if they were taking leave. Many already do so for pregnancy leave, but businesses want a formal procedure to prevent a misunderstanding that leads to non-compliance.

Another law that takes effect in July 2024 would place a 50-cent fee for deliveries of $100 or more. Kadoun said the law sounds simple but is complicated with several exceptions. Medical supplies are exempt from this tax. Businesses that ship bulk products are seeking further clarification on this tax.

Minnesota also passed a law banning non-compete agreements in employment contracts. This means companies cannot bar an employee from quitting and working for a competing business. The law is not retroactive, meaning existing non-compete laws would still be in effect. Kadoun said the law would still prevent a former employee from sharing trade secrets with a competitor.

Kadoun said the new legislation would also raise taxes by $10 billion over the next four years. Some of these come in the form of transportation taxes, including a gas tax.

Kadoun said Minnesota businesses would likely have more questions as more people became familiar with the legislative changes.

“We want businesses to grow and thrive,” Kadoun said. “If anything is causing an issue for a business we need to know about and tell the legislators.

She said the greatest obstacle facing Minnesota’s business community is the cost of doing business in Minnesota is very high. The state has many regulations. Kadoun said permitting costs are also high. The Minnesota Chamber wants to make sure the state is not over-regulated.

Overall, Kadoun believes Minnesota has a strong economy because of its diverse businesses, innovative practices and a talented workforce.

Kadoun acknowledged Many of the laws passed in the 2023 session benefit workers. In the last few years, Minnesota’s population has gone down, threatening the state’s worker pool. Kadoun believed the Democrat’s goal in passing this legislation was to attract worker talent back to Minnesota.

“We will see if works,” she said.