Paid Family Leave having disastrous effect of business? Who would have thunk it?

If Only There'd Been Some Sort of Warning

If only someone had tried to warn the State of Minnesota about its paid family leave bill. 

Someone like, say, every competent economist and budget analyst in the state, and every single elected official in the party that represents half of the state's population (and way over half of the state's small business owners), and every pundit that doesn't shout "how high, sir?" when the DFL (Minnesotan for "Democratic Party") says "Jump", I mean.  

Two years ago, during the "trifecta", when the DFL held the "Trifecta" (control of the House, Senate, and the Governor's office), among the raft of big-money social spending and (let's be honest) graft and fraud fodder they jammed down was a "paid family leave" law.   It provides most Minnesota workers - full or part-time - 55% to 90% of their income up to a cap of a little over $1,400 a week, for 12 weeks of state-paid leave (up to 20 weeks for extra conditions) for a long menu of things; personal or family medical issues, maternity, bonding with a baby or adopted child, domestic violence or other safety issues, military deployment, and more. 

It's financed by a .88% tax split between the employer and employee, which is the least of the costs.  The law also requires reinstatement, and for the employer to see to covering the employee's job while they're out.  It doesn't specify how many people can care for the same family member - literally dozens of people could get leave to "care for" a single person.   And - in case you're not convinced yet - the law requires any collection actions for false claims be dropped after three years.  Which basically makes fraud legal and impossible to prosecute.   

And the list of people above - including David and I?  We did try to warn people.   I've personally seen small businesses pack up and leave the state.   

And now, even the state's infamously tame media is noticing there just might be a problem

A couple of weeks ago, Program Director Greg Norfleet and Department of Employment and Economic Development Deputy Commissioner Evan Rowe testified before the Minnesota House Workforce, Labor, and Economic Development Finance and Policy Committee and reported that: “As of Feb. 15, nearly 48,000 applications had been submitted, with decisions made on about 31,000. More than 20,000 have been approved.” That works out at an approval rate of 435 each day (20,000 / 46). This is 24% above the rate of 352 approvals dailt forecast by DEED when the scheme launched (128,338 / 365).

Not to be outdone, Vacationland has enacted the almost identical bill, except that benefits are as high as 100% of the employee’s salary and are tax-free Even the self-employed can demand the same payout, courtesy of the taxpayer.

Maine Enacts New Paid Family and Medical Leave Act

The same warnings, and the same protests were raised by business owners in Maine as in Minnesota but in Maine, like the Land of Butter, the Democrats hold all three branches of legislature, so on May 1st, the carnage will begin.