Paid Medical and Family Leave Bill Takes Shape

With the DFL in control of both chambers of the legislature and the Governor’s office, there are policy priorities that party leadership has made clear will become law during the 2023 session – “Paid Medical and Family Leave” being one of the most high profile. And while its passage is all but a foregone conclusion, some details of consequence are yet to be finalized. Opinions on this policy vary, but AASP-MN members must be up to speed for what will eventually be passed into law.

This complex draft legislation has made multiple committee stops in the House of Representatives and the Senate, with amendments changing some provisions at nearly every stop. The following is a high-level summary of what the Senate and House bills include thus far, but with the caveat that things continue to evolve.

In both the Senate and House bills, the state will allot $670 million to get the program started. Employers and employees will then split a payroll tax of 0.7 percent to fund the program into the future. After working for an employer for three months, employees would be eligible to take 12 weeks off for a qualifying medical event and 12 weeks to care for a family member. Employees would be entitled to their same or similar position upon returning. Both instances of this leave would require documentation. The Department of Employment and Economic Development (DEED) will hire approximately 400 fulltime employees to administer the program. Grants for small businesses are also part of the proposed legislation in both chambers.

There are several provisions that differ between the House and Senate versions. For example, the Senate version currently caps the number of consecutive weeks a person could take if they have qualifying family and medical events at 20 weeks. In the House, a person could take 24 weeks (12 weeks per event). Additionally, the Senate version now includes a lower tax rate for businesses with fewer than 35 employees.

AASP-MN continues to track this issue and has considered many factors as we decide how best to weigh in. Some questions we have considered include:

(1) Will this impact our members, and to what extent?

(2) Do members largely share the same opinion about

by Sam Richie & Shannon K. Mitchell, AASP-MN Lobbyists

the policy or are opinions varied? (3) Do we have the power to impact the outcome? (4) Who else is leading in shaping the legislation and are there opportunities to advocate through these channels?

In exploring these questions, we have determined that legislation that changes employment law will most certainly impact our members. What is far less clear is the extent of the impact. This is because key details are still being negotiated, including lower tax rates for small businesses. Additionally, AASP-MN members, like the broader small business community, have varying opinions on whether this is a helpful or detrimental policy. Some feel this allows small businesses to compete with those offering robust leave programs. Others worry that employees will start taking time off for non-critical medical reasons, and companies will be short on labor and have increased overhead expenses.

The opportunity to influence the ultimate outcome is minimal as this program will become law in some form given past DFL support and complete control of state government. However, there is an opportunity to voice concerns specific to small businesses. To that end, AASP-MN has submitted letters to relevant legislative leaders that broadly outline key supports for small businesses. Additionally, the opportunity to be instrumental in the rule-making and implementation phase is even more critical. Therefore, AASP-MN will submit comments during the rule-making period and advocate for DEED to gather feedback from small businesses during the implementation phase.

Shifting gears, we know as laws change, the practicalities of how AASP-MN members conduct business will need to adapt and may require legal consultation. As part of Fryberger’s services to AASPMN, shops are entitled to consultations with the skilled business attorneys in our Duluth office. Many members have utilized this opportunity for services ranging from common employment law questions to help with creating or updating employee guidelines and handbooks. If you have legal questions or issues, please reach out to Linden Wicklund (612-623-1110 or linden@aaspmn.org) or Sam Richie (218-301-9758 or srichie@fryberger.com) to get in contact with the appropriate Fryberger attorney to help assist your shop.

Meet the New AASP-MN Board Members

The new AASP-MN Board members were introduced at the Annual Meeting & Leadership Conference, April 5 at the Minneapolis Marriott Northwest in Brooklyn Park. Each will serve a three-year term 4/1/23 – 4/1/26. They are:

Randy Notto, Lenfer Automotive & Transmission, Lino Lakes – Mechanical Seat

Hello, I’m Randy Notto, one of the newly elected Mechanical Seats of AASP-MN. I’m the owner of Lenfer Auto & Transmission in Lino Lakes and Wyoming. I have been a shop owner for over 30 years and worked for my father prior to taking over the business in 1989.

I am Shannon Christian, owner of Shannon’s Auto Body, a family-owned and operated business out of Brainerd. I have been in the industry for over 30 years and have been operating my business for over 28 years. My business includes a collision center, mechanical shop, Western & SnowEx snowplows sales and service and I will also be opening a new state-of-the-art 40,000 square foot collision repair facility in Brainerd soon.

An active member of the collision repair industry, I have participated in and led 20 groups at the local, regional and national level. A strong passion has always been to improve the industry through the education of customers and other shops on correct repair procedures. I continue to work closely with SCRS, Collision Hub, Collision Advice and NABR.

My wife, Amie, is an active member of the business as well. We share a blended family of eight children and one grandchild. We enjoy traveling and spending time at the lake with friends and families.

Minnesota Careers in Auto Repair & Service (MNCARS)

MNCARS is a non-profit organization established in 2016 by AASP-MN. Its sole purpose is to promote careers in the automotive industry, recruit young people into the state’s collegelevel automotive service and collision repair programs and, ultimately, into industry workplaces.

Spring is here and the end of the school year is getting closer. This means that many of the school advisory boards are meeting! MNCARS participates in as many of these meetings as possible, but it takes many committed volunteers across the state to reach all the schools. MNCARS partner the Minnesota Transportation Center of Excellence has lists of colleges, technical schools, and high schools around the state with automotive programs. Schools with Perkins funding are required to have advisory boards with industry participation. Visit: minntran.org/industry/getinvolved/

Take advantage of the resources in the MotorMouth toolbox at carcareers.org/motor-mouth. Get out and get active in your local community promoting industry careers!

I have been an AASP-MN member since 1989 and have realized a tremendous benefit from my membership and participation in Alliance activities and events, and I’m happy to be able to give back.

Through my membership and involvement in AASPMN, I have built relationships with many other members that have been extremely valuable. They have shared information on difficult repairs, loaned me tools and discussed difficulties I may have been having in my business, often offering a different point of view or way of approaching the problem.

Like many of you, I am plenty busy just trying to run my business and don’t have a lot of time to find things out on my own. Our association does a great job helping us all stay on top of new laws and regulations so we can run our business instead of the business running us.

AASP-MN has also done the homework for us when it comes to cost savings programs. From credit card processing and uniform and linen supplies to workers’ compensation and property/liability insurance, the association’s programs are difficult to beat!

If you haven’t been an active member, make 2023 your year! I encourage everyone to get involved. All of you have more to offer than you think. And, I promise, you will get 10 times back what you put in.

Tim Kruse, TGK Automotive, Hugo –Mechanical Seat

I have been in the automotive industry for 34 years. I started as a parts runner then moved on to technician, management, owner, director of operations and now market director. I enjoy every aspect of this industry and the people who work in it. The fast pace and everchanging vehicles are what keeps me intrigued and interested in this industry still today, and tomorrow.

I have been involved with AASP-MN for a couple years and enjoy having conversations with others in this industry about how to make it better. I am also President of the WBL HS Automotive Program, and a Board Member for Century College. I have been married for 24 years, with two children (grown men) and a dog. I love hunting, fishing, snowmobiling and ATV riding in my spare time.

Shannon, Randy and Tim join other members of the Board, which include:

• Mike McLynn, Automotive Electric, Grand Rapids – President

• Jesse Jacobson, Heppner’s Auto Body, Woodbury –Immediate Past President

• Aaron Swanson, LaMettry’s Collision, Eden Prairie, Secretary/Treasurer

• Paul Yager, Enterprise Rent-A-Car, Eagan, Associate Division Director

• Travis Doyle, Arrowhead Auto Body, Hermantown, Collision Division Director

• Dan Gleason, Pro-Tech Auto Repair, Corcoran, Mechanical Division Director

Join AASP-MN for the 28th Annual AASP-MN Golf Outing

The 28th Annual AASP-MN Golf Outing is Wednesday, June 21, 2023 at Majestic Oaks Golf Club in Ham Lake. All collision repair and auto service industry professionals and suppliers are invited to attend the event to enjoy a day of golfing and socializing with industry peers.

Play will begin at 12:30 pm, followed by dinner and an awards presentation. The cost to participate is $100 per golfer or $400 per foursome. Golf holes are also available to sponsor for $350 each.

For additional information, see page 18 or visit the association’s website, aaspmn.org or contact the Alliance office at aasp@aaspmn.org or (612) 623-1110.

Thank you 2023 Year-Long Sponsors!

Platinum Sponsors

LKQ Minnesota

Lube-Tech

Gold Sponsors

3M

AASP National

Auto Value / Benco

CBIZ

FinishMaster

NCS / Single Source

ShopMonkey

Silver Sponsors

Aramark

Axalta Coating Systems

Colonial Life

Enterprise Rent-A-Car

Heartman Insurance

O’Reilly Auto Parts

PPG Automotive Refinishes

Sherwin-Williams

Suburban GM Parts

Sunbelt Business Advisors

United Fire Group

Bronze Sponsor aaa Auto Parts

C.H.E.S.S.

Dentsmart PDR

Radco