Every major policy change comes with the need for adjustments, and Minnesota’s Earned Sick and Safe Time (ESST) law, which took effect on Jan. 1, 2024, and the upcoming Paid Family and Medical Leave (PFML) program, set to launch on Jan. 1, 2026, are no exception. As these programs take root, small businesses and employees alike are experiencing their real-world impacts, making it imperative that the Minnesota Legislature take a thoughtful approach to necessary refinements.

With over a year of ESST in practice, we now have a clearer picture of how the program functions in the day-to-day operations of employers across Minnesota. We appreciate that both Democrats and Republicans seem to recognize the need for tweaks to improve the law. For example, encouraging frontloading of leave could provide a more efficient way for small businesses to manage leave while benefiting employees who would have immediate access to their time off. Additionally, clarifying definitions within the law would help ensure smoother implementation and reduce confusion for both employers and employees.

As we approach the rollout of PFML in 2026, small businesses in particular have many questions about how this program will affect their operations, staffing, and financial planning. While the intent behind PFML is clear, the details matter — especially for businesses with seasonal employees or unique workforce needs. Encouragingly, lawmakers on both sides of the aisle seem to recognize that adjustments are needed to address items like employer notice requirements, account for seasonal workers, and implement technical fixes to make the program as effective and manageable as possible.

As one human resource professional recently put it during a House hearing on PFML, we don’t need to be pro-employer or pro-employee — we need to be pro-employment. These programs should work as effectively as possible for both businesses and workers, ensuring that they achieve their intended goals without unnecessary complications.

By making thoughtful adjustments now, the Minnesota Legislature can help ensure that ESST and PFML function in a way that benefits the entire state — businesses, employees, and our economy as a whole. We urge lawmakers to continue their bipartisan approach to refining these important policies, ensuring they are both fair and functional for all Minnesotans.

Bruce Nustad is president of Minnesota Retailers; Tony Chesak is the executive director of the Minnesota Licensed Beverage Association and Doug Loon is president and chief executive of the Minnesota Chamber of Commerce.

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