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08.c Resolution No. 11-18-25-11 Adopting MPL Policy Staff Report Date of Meeting: November 18, 2025 For: Honorable Mayor and Council From: Kyle Morell, City Administrator Subject: Resolution No. 11-18-25-11 Adopting MN Paid Leave The State of Minnesota has adopted a Paid Leave Law, which goes into effect on January 1, 2026. The City has established an account with the State to administer its program. All leave applications will go through the State. The City needs to adopt the new leave option into its Personnel Policy. Resolution 11-18-25-11 amends the City’s Personnel Policy as required to comply with the new law. The program is funded through payroll deductions and a city contribution, totaling 0.88% of wages paid. The City has informed the union that it will pay half of the required contributions, with the other half funded by employee payroll deductions. An MOU to the City’s union contract is attached that outlines the changes to the contract needed due to this new law. Attachments: Resolution No. 11-18-25-11 Adopting MN Paid Leave MOU to City and Local 49 Union Contract for MN Paid Leave CITY OF SCANDIA RESOLUTION NO. 11-18-25-11 STATE OF MINNESOTA COUNTY OF WASHINGTON CITY OF SCANDIA RESOLUTION AMENDING LEAVE AND MEAL BREAKS AND REST PERIODS POLICIES WHEREAS, effective January 1, 2026, the State of Minnesota will require all employers to participate in the Minnesota Paid Leave Program; WHEREAS, effective January 1, 2026, Minnesota Statute Section 177.254 is amended to allow employees working for six or more consecutive hours a meal break of at least 30 minutes instead of every eight or more consecutive hours; WHEREAS, all public employers are covered by FMLA without regard to the number of employees; WHEREAS, the City of Scandia does not have any covered employees under FMLA; WHEREAS, the City of Scandia is a family-friendly environment and an employer who would like to be supportive to employees in their time off needs; WHEREAS, the City aims to have equitable treatment of employees; and WHEREAS, attachment A shows the new policies and policy amendments. NOW THEREFORE BE IT RESOLVED, by the City Council of Scandia, that the policies shown in attachment A be added and amended in the City's Personnel Policy, effective as noted. Adopted this 18th day of November, 2025. CITY OF SCANDIA, MINNESOTA ______________________________ Steve Kronmiller, Mayor _____________________________ Kyle Morell, City Administrator ATTACHMENT A: MINNESOTA PAID LEAVE Effective January 1, 2026, the State of Minnesota will require all employers to participate in the Minnesota Paid Leave Program. Employees are entitled to Minnesota Paid Leave (MPL), a form of paid leave. Use of MPL: The benefit year for MPL is a rolling 12-month period measured backward from an employee’s first day of leave taken. Employees must provide notice to their supervisor sufficient for the City to understand the employee’s need for and duration of the leave. Employees may take a maximum of 480 hours in any 12-month period of intermittent MPL. Intermittent leave must be taken in a minimum increment of 15 minutes. MPL taken for the same purpose must run currently with the Family and Medical Leave Act or Parental Leave respectively. Leave under MPL does not run concurrently with PTO and employees will not be required to exhaust accrued PTO before or while taking leave under MPL. An employee can choose to use PTO in lieu of MPL benefits (provided the employee is concurrently eligible) or to supplement MPL benefits up to the amount of their normal wages. Additional Information: For information about coverage and eligibility requirements, refer to the terms and conditions of the agreement between the City and the insurance carrier or contact Minnesota Paid Leave. Effective January 1, 2026 FAMILY AND MEDICAL LEAVE The City of Scandia provides leave according to the Family and Medical Leave Act of 1993 (FMLA), which provides for unpaid, job-protected leave to covered employees in certain circumstances. Eligibility: To qualify for FMLA leave, you must: (1) have worked for the City for at least 12 months, although it need not be consecutive; (2) worked at least 1,250 hours in the last 12 months; and (3) be employed at a worksite that has 50 or more employees within 75 miles. If you have any questions about your eligibility for FMLA leave, please contact the City Administrator. Leave Policy: If eligible, you may take up to 12 or 26 weeks of family or medical leave, whichever is applicable (as explained below), within the relevant 12-month period defined below. While you are on FMLA leave, the City will maintain your group health insurance coverage at the same level and under the same circumstances as when you were actively working, as explained more fully under the section titled, “Medical and Other Benefits.” On returning from approved FMLA leave, you have the right to be restored to the same job or an equivalent position, subject to the terms, limitations, and exceptions provided by law. Leave Entitlement: You may take up to 12 weeks of unpaid FMLA leave in a 12-month period, using a “rolling” method that is measured backward from the date you use any FMLA leave for any of the following reasons: • the birth of a child and in order to care for that child (leave to be completed within one year of the child’s birth); • the placement of a child with you for adoption or foster care and in order to care for the newly placed son or daughter (leave to be completed within one year of the child’s placement); • to care for a spouse, child, or parent with a serious health condition; • to care for your own serious health condition, which renders you unable to perform any of the essential functions of your position; or • a qualifying exigency of a spouse, child, or parent who is a military member on covered active duty or called to covered active-duty status (or has been notified of an impending call or order to covered active duty). You may take up to 26 weeks of unpaid FMLA leave in a single 12-month period, beginning on the first day that you take FMLA leave to care for a spouse, child, parent or next of kin who is a covered service member and who has a serious injury or illness related to active-duty service, as defined by the FMLA’s regulations (known as military caregiver leave). Notice of Leave: If your need for FMLA leave is foreseeable, you must give the City at least 30 days’ prior written notice. If this is not possible, you must at least give notice as soon as practicable (within one to two business days of learning of your need for leave). Failure to provide this notice may be grounds for delaying FMLA-protected leave, depending on the particular facts and circumstances. Additionally, if you are planning a medical treatment or a series of treatments or taking military caregiver leave, you must consult with the City first regarding the dates of this treatment to work out a schedule that best suits the needs of the employee or the covered military member, if applicable, and the City. Where the need for leave is not foreseeable, you are expected to notify the City within one to two business days of learning of your need for leave, except in extraordinary circumstances. The City has Family and Medical Leave Act request forms available from the City Administrator. Please submit a written request, using this form, when requesting leave. Certification of Need for Leave: If you are requesting leave because of your own or a covered relative’s serious health condition, you and the relevant health care provider must supply appropriate medical certification. You may obtain Medical Certification forms from the City Administrator. When you request leave, the City will notify you of the requirement for medical certification and when it is due (at least 15 days after you request leave). If you provide at least 30 days’ notice of medical leave, you should also provide the medical certification before leave begins. Failure to provide requested medical certification in a timely manner may result in denial of FMLA-covered leave until it is provided. the City, at its expense, may require an examination by a second health care provider designated by the City. If the second health care provider’s opinion conflicts with the original medical certification, the City, at its expense, may require a third, mutually agreeable, health care provider to conduct an examination and provide a final and binding opinion. the City may require subsequent medical recertification. Failure to provide requested certification within 15 days, when practicable, may result in delay of further leave until it is provided. the City also reserves the right to require certification from a covered military member’s health care provider if you are requesting military caregiver leave and certification in connection with military exigency leave. Reporting While on Leave: If you take leave because of your own serious health condition or to care for a covered relative, you must contact the City every two weeks regarding the status of the condition and your intention to return to work. In addition, you must give notice as soon as practicable (within two business days if feasible) if the dates of leave change or are extended or initially were unknown. Leave Is Unpaid: FMLA leave is unpaid. You are required to take MPL and Pregnancy and Parenting Leave concurrently with FMLA. You may be required to substitute any accrued and unused PTO for unpaid FMLA leave as described below: • If you request leave because of your own serious health condition, or to care for a covered relative with a serious health condition, any accrued PTO may be substituted for any unpaid family/medical leave and run concurrently with your FMLA leave. The substitution of paid leave time for unpaid FMLA leave time does not extend the 12 or 26 weeks (whichever is applicable) of the FMLA leave period. In no case can the substitution of paid leave time for unpaid leave time result in your receipt of more th an 100% of your salary. Your FMLA leave runs concurrently with other types of leave, for example, accrued vacation time that is substituted for unpaid FMLA leave and any state family leave laws, to the extent allowed by state law. Medical and Other Benefits: During approved FMLA leave, the City will maintain your health benefits as if you continued to be actively employed. If paid leave is substituted for unpaid FMLA leave, the City will deduct your portion of the health plan premium as a regular payroll deduction. If your leave is unpaid, you must pay your portion of the premium through personnel check. Your health care coverage will cease if your premium payment is more than 30 days late. If your payment is more than 15 days late, we will send you a letter to this effect. If we do not receive your premium payment within 15 days after the date of this letter, your coverage may cease. If you elect not to return to work for at least 30 calendar days at the end of the leave period, you will be required to reimburse the City for the cost of the health benefit premiums paid by the City for maintaining coverage during your unpaid leave, unless you cannot return to work because of a serious health condition or other circumstances beyond your control. Intermittent and Reduced Leave Schedule: If medically necessary, FMLA leave occasioned by a serious health condition may be taken intermittently (in separate blocks of time due to a serious health condition) or on a reduced leave schedule (reducing the usual number of hours you work per workweek or workday). FMLA leave may also be taken intermittently or on a reduced leave schedule for a qualifying exigency relating to covered military service. If leave is unpaid, the City will reduce your salary based on the amount of time actually worked. In addition, while you are on an intermittent or reduced leave schedule, the City may temporarily transfer you to an available alternative position that better accommodates your leave schedule and has equivalent pay and benefits. Returning from Leave: If you take leave because of your own serious health condition (except if you are taking intermittent leave), you are required, as are all employees returning from other types of medical leave, to provide medical certification that you are fit to resume work. Otherwise, you will not be permitted to resume work until it is provided. Effective Immediately a) Meal Breaks and Rest Periods Repealed Effective Immediately a) Meal Breaks and Rest Periods 1) A paid fifteen (15) minute paid break is allowed within each four (4) consecutive hours of work. An unpaid thirty (30) minute lunch period is provided when an employee works six or more consecutive hours. 2) Employees working in City buildings will normally take their break at an appropriate place for that purpose in each building. Employees working out -of-doors will normally take their break at the location of their work. Employees whose duties involve traveling throughout the City may stop along the assigned route at a restaurant or other public accommodation for their fifteen (15) minute break. Exceptions may be approved by the supervisor or City Administrator. 3) Departments with unique job or coverage requirements may have additional rules, issued by the supervisor and subject to approval of the City administrator, on the use of meal breaks and rest periods. Effective Immediately INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL NO. 49, 49A, 49B, 49C, 49D, 49E, 49L MINNESOTA • NORTH DAKOTA • SOUTH DAKOTA EUGENE J. GROVER, President MARK J. POTHEN, Vice President RYAN P. DAVIES STEVE R. PIPER, Recording-Corresponding Secretary Business Manager/Financial Secretary MARVIN J. HOSE, Treasurer 2829 Anthony Lane South, Minneapolis, MN 55418-3285 Phone (612) 788-9441 • Toll Free (866) 788-9441 • Fax (612) 788-1936 Memorandum of Agreement This Memorandum of Agreement is entered into between City of Scandia (hereafter “Employer”) and the International Union of Operating Engineers Local No. 49 (hereafter “Union”). WHEREAS, the Employer and the Union are parties to a Collective Bargaining Agreement in effect January 1st, 2024 through December 31st, 2026 (the “Collective Bargaining Agreement”); and WHEREAS, the parties have agreed to negotiate the Employer and Employee Minnesota Paid Family and Medical Leave (“PFML”) premium contribution rate, which are effective January 1, 2026 or such other date as required by Minnesota law; NOW THEREFORE, the Employer and the Union agree to the following: 1. Pursuant to Minn. Stat. § 268B.14, the Employer agrees to pay 50% of the PFML premiums for all regular employees represented by the Union for the duration of the Collective Bargaining Agreement. The employees agree to pay 50% of the state-run plan or 50% of a qualifying replacement plan maintained by the Employer, whichever is less. 2. Qualifying employees are not required to exhaust their accrued vacation and/or sick leave and/or compensatory time prior to applying for or receiving PFML benefits offered or granted by the plan administrator, whether the State of Minnesota or the private administrator, responsible for providing such PFML benefits. 3. Qualifying employees may use certain paid benefits such as accrued vacation, accrued sick time, and/or accrued compensatory time as “supplemental benefits” during PFML to allow employees the option to receive up to, but not to exceed, a full salary continuation during their leave. 4. While an employee is on PFML, they shall be entitled to accrue all vacation, sick, holiday, and/or any other benefit time as provided in the Collective Bargaining Agreement. 5. While an employee is on PFML, he/she is entitled to holiday pay for all observed holidays as if such employee was not on leave. All other provisions of the Collective Bargaining Agreement between the Employer and the Union will remain unchanged. This Memorandum of Agreement represents the complete and total agreement of both parties. IN WITNESS WHEREOF, the parties have executed this Memorandum of Agreement this _____ day of____________________, 2025. City of Scandia I.U.O.E Local No. 49 _________________________________ __________________________________ Kyle Morell, City Administrator Travis Gossard, Area Business Representative ___________________________ ______________________ Date Date