>> CATHY: THE STATE'S NEW PAID FAMILY AND MEDICAL LEAVE PROGRAM IS SET TO LAUNCH ON THE 1ST OF JANUARY.

THE DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT WILL OVERSEE THE PROGRAM AND RECENTLY KICKED OFF AN AWARENESS CAMPAIGN FOR UPCOMING CHANGES AFFECTING EMPLOYEES AND EMPLOYERS.

JOINING US WITH MORE IS D.E.E.D.

COMMISSIONER MATT VARILEK.

WELCOME BACK.

>> THANK YOU.

GREAT TO BE HERE.

>> Cathy: I UNDERSTAND THAT 35,000 PEOPLE OR SO HAVE ALREADY APPLIED?

>> THAT'S RIGHT.

WE ARE TAKING AN INCREMENTAL APPROACH TO STANDING UP AND LAUNCHING THE PROGRAM.

JANUARY 1st IS HEN EVERYONE KNOWS IT OFFICIALLY BEGINS, WHEN YOU CAN ACTUALLY START TAKING LEAVE AND START GETTING PAYMENTS.

THE LAW ALSO ALLOWS THAT ANY PARENTS WHO HAD A BABY IN 2025 CAN APPLY NOW, AND THEY HAVE TO USE LEAVE WITHIN ONE YEAR OF THE BABY'S BIRTHDAY.

SO WE CAN BE RECEIVING THOSE APPLICATIONS ALREADY, WHICH WE ARE, AS YOU MENTIONED, SO WE'VE HAD OVER 5,000 PEOPLE MAKING APPLICATIONS, WHICH IS GREAT FOR THEM FOR PLANNING, AND ALSO GREAT FOR US TO BE ABLE TO TEST OUR SYSTEMS EXAMINE MAKE SURE EVERYTHING IS WORKING PROPERLY SO WE CAN HAVE THIS BE A VERY SMOOTH ROLLOUT.

>> Eric: THERE'S A PAYROLL TAX, I GUESS YOU CALL IT, EMPLOYER AND EMPLOYEE.

IS THAT GOING TO HAVE TO FLUCTUATE UP AS THE PROGRAM GETS ORE POPULAR?

IT SOUNDS LIKE IT'S OFF TO A PRETTY IMPRESSIVE START.

>> YEAH, IT'S AT 0.88%, AND WE RELY ON AN ACTUARY THAT HAS TECHNICAL CAPABILITIES TO MAKE THESE PROJECTIONS.

AND, SO, THAT'S HOW THE NUMBER GETS SET.

IT CAN ADJUST ON AN ANNUAL BASIS.

THERE'S A CAP IN THE LAW.

BUT WE WILL BE REPORTING ON THE ACTUAL FIGURES AND TAKE THAT INTO CONSIDERATION AS WE GO FORWARD.

>> Cathy: SO, JANUARY 1st, BUT I'M WONDERING, IF YOU HAVE A FAMILY EMERGENCY, A FAMILY MEMBER HAS EMERGENCY SURGERY, THEY NEED HELP, HOW QUICKLY CAN SOMEONE GET APPROVED FOR LEAVE?

>> WE HAVE A TWO-WEEK TURNAROUND AS OUR TARGET AND WE AIM TO BE EVEN ASTER THAN THAT AND WE HAVE, IN FACT, BEEN FASTER THAN THAT.

BUT THAT'S WHAT WE'RE AIMING FOR ON THE HIGH SIDE.

AND I WOULD ALSO SAY THAT IF FOLKS HAVE QUESTIONS ABOUT ANY OF THIS, NUMBER ONE, I WANT TO STEER FOLKS TO THE WEBSITE, PAIDLEAVE.MN.GOV.

WE ALSO HAVE A CALL CENTER THAT'S BEEN TAKING CALLS FROM EMPLOYERS AND EMPLOYEES SINCE JULY, AND OUR ANSWER TIMES ARE 30 SECONDS OR LESS.

>> Cathy: OKAY.

AND THEN BY THE WAY, IF YOU'RE ON LEAVE, HOW LONG DO YOU GET FOR LEAVE, 20 WEEKS?

>> IT IS A MAXIMUM OF UP TO 12 WEEKS IN THE CASE OF MEDICAL OR A MAXIMUM OF 12 IN THE CASE OF FAMILY.

AND IF YOU ARE IN ONE OF THE RARE ASES WHERE YOU WOULD QUALIFY FOR BOTH, IT'S A MAXIMUM OF 20, BUT WE ALSO HAVE TO SAY, IN ALL CASES, BONDING LEAVE YOU CAN TAKE UP TO THAT 12 WEEKS IF YOU SO CHOOSE.

AND YOU CAN VERIFY THAT YOU'VE WELCOMED A BABY, BUT ON THE MEDICAL SIDE, IT HAS TO BE VALIDATED THAT YOU HAVE THAT NEED BY A MEDICAL PROVIDER, SO YOU CAN'T TAKE 12 WEEKS JUST BECAUSE SOMETHING HAPPENED.

IT NEEDS TO BE THAT A MEDICAL PROVIDER SAID YOU NEED TO TAKE SIX WEEKS OR EIGHT WEEKS OR WHATEVER IT MAY BE.

>> Eric: FRAUD PREVENTION.

>> VERY IMPORTANT, YES.

AND WE'RE FORTUNATE THAT WE'RE ABLE TO BUILD THIS IN FROM THE BEGINNING SO THAT WE PREVENT FRAUD.

WE'RE PROUD TO BE THE DEPARTMENT THAT RUNS MINNESOTA'S UNEMPLOYMENT INSURANCE PROGRAM, WHERE WE HAVE A VERY STRONG TRACK RECORD, WE'RE AMONG THE BEST IN THE NATION AT MINIMIZING IMPROPER PAYMENTS.

IN THE CASE OF PAID LEAVE, WE HAVE BUILT THIS ITH MODERN ARCHITECTURE, SO YOU HAVE TO VERIFY YOUR IDENTITY.

WE CROSS-CHECK AGAINST THOSE LEAVE -- RATHER -- THE WAGE RECORDS THAT WE GET IN UNEMPLOYMENT INSURANCE, ET CETERA.

AND HAVE RECEIVED HIGH MARKS ALREADY FOR FOLKS THAT HAVE LOOKED AT THE PROGRAM FOR ALL THE MEASURES THAT WE HAVE IN PLACE BECAUSE WE DON'T WANT TO WASTE A PENNY ON WHAT SHOULD GO TOWARDS BENEFITS.

>> Cathy: SO YOU'RE LOOKING FOR A FRAUD RISK AND AUDIT ADVISE SUPERVISOR, BY THE WAY.

MY PRODUCER AND I HAVE A QUESTION, IF YOUR EMPLOYER ALREADY HAS A LEAVE PROGRAM, HOW DOES THAT WORK WITH THAT?

>> SO IT'S ROUGHLY A QUARTER OF MINNESOTANS WHO HAVE BEEN AT AN EMPLOYER THAT OFFER THAT BENEFIT.

SO THREE-QUARTERS HAVEN'T HAD IT, WHICH IS WHY THE PROGRAM IS IMPORTANT, WE'RE SO GRATEFUL TO ALL THE ADVOCATES WHO HELPED MAKE IT HAPPEN, ALONG WITH THE GOVERNOR LEADING ON IT.

SO THERE IS AN OPTION IF A COMPANY WANTS TO GO WITH A PRIVATE PROVIDER, THEY CAN DO SO.

BUT IT NEEDS TO BE ON A PLAN THAT HAS BEEN REVIEWED, I BELIEVE IT'S BY OUR DEPARTMENT OF COMMERCE, OUR PARTNERS THERE, AND IT NEEDS TO BE AT LEAST AS GENEROUS AS THE STATE PLAN.

AND, SO, IT'S GOOD THAT THERE'S PRIVATE CHOICE, BUT IT CAN'T BE A LESSER BENEFIT SO THAT ALL MINNESOTANS NOW HAVE ACCESS.

>> Cathy: ALL RIGHT.

>> Eric: GOOD LUCK WITH THE ROLLOUT.

>> THANK YOU VERY MUCH.

PROUD TO SAY IT'S GOING VERY SMOO