A new law in Minnesota is raising eyebrows, and not just because it’s one of the most generous paid leave programs in the country. Governor Tim Walz, a Democrat, has launched a plan that will give workers up to 20 weeks of paid family and medical leave each year starting in 2026. That’s nearly five months off the job — with pay — for things like childbirth, surgery, or taking care of a sick family member. But here’s the part that has people talking: the program also covers illegal immigrants, and critics say it’s a recipe for fraud.
Let’s break this down.
The new law, called the Paid Family and Medical Leave Law, allows workers in Minnesota to take time off for a wide range of reasons. These include serious health problems, the birth or adoption of a child, domestic violence situations, or helping a military family member. Employees can take up to 12 weeks for medical leave and 12 for family leave — but they can’t go over 20 weeks total per year.
The idea might sound helpful on paper. After all, who wouldn’t want time off to heal or care for a loved one? But the way this program is being rolled out has many people concerned, especially small business owners.
First, there’s the cost. This isn’t “free money.” The payments will come from a new payroll tax that employers have to pay. Some employees may also have to chip in, depending on their jobs. Basically, businesses are being told to pay more money to the state so the state can pay workers when they’re not working.
This is a big deal for small businesses. If a worker leaves for several months, companies still have to hold their job or find a temporary replacement. And when that worker comes back, their job has to be waiting for them — even if someone else was hired to keep the business running in the meantime. That puts small employers in a tough spot.
Then there’s the fraud concern.
Minnesota is still reeling from a massive welfare fraud scandal that made headlines nationwide. A group with ties to Somalia was accused of stealing up to a billion dollars in taxpayer money meant to feed hungry children. Some of that money was reportedly funneled to a terrorist group overseas. And all of this happened while Governor Walz was in charge.
Now, critics are worried this new paid leave program could be the next target for scammers. Republican State Rep. Walter Hudson warned that the rules are so loose that 30 people could claim to be caring for the same person and still get paid. The law even allows workers to take time off to care for someone they have an “affinity” with — meaning they don’t need to be a relative.
That opens the door wide for abuse.
What’s more, the state’s own website confirms that “undocumented workers” — that means illegal immigrants — are covered by the program. That means someone who isn’t even supposed to be working in the U.S. could get paid leave funded by Minnesota businesses and taxpayers.
When asked about the potential for fraud, Governor Walz didn’t offer much reassurance. Instead, he said the question was “disrespectful” to Minnesotans — a strange response given how much fraud the state has already seen.
Critics aren’t buying it. Defense lawyer William Shipley called the plan “stupid” and warned that it will hurt employers and reward people who game the system. And to be clear, this isn’t a small pilot program — it’s a full-scale government-run system that will touch almost every job in the state.
In the end, Minnesota’s new paid leave law may sound like a gift to workers, but it’s one that small businesses and taxpayers will be forced to pay for. With a recent billion-dollar fraud case still fresh in people’s minds, this new plan raises more questions than answers — especially when it includes benefits for those who are in the country illegally. Time will tell if this program helps Minnesotans or becomes the next scandal in the making.