Adopt Resolution #25-265 Approving a Memorandum of Agreement with LELS Captains

The purpose of this case is for the City Council to approve a Memorandum of Agreement (MOA) with the union related to the new Minnesota Paid Family and Medical Leave (MN PFML) law. 

The MOA is necessary because the current union contract has been adopted through December 31, 2026 and the new law must be reflected within the contract by January 1, 2026. 

Background: MN PFML is a state-run program launching January 1, 2026, that provides partial wage replacement and job protection for eligible employees during major life events. Key features include:

• Medical leave, family care, bonding with a new child, safety leave, and military exigency leave.
• Offers up to 20 weeks per year of paid leave with partial wage replacement.
• Financed through a payroll tax, split between employers and employees.
• Applies to all Minnesota employers, including nonprofits and government agencies.
  • Independent contractors and seasonal workers are excluded.
• Both benefits and payroll contributions begin January 1, 2026.

As discussed previously with the City Council, the City of Ramsey is exercising its right to choose a private vendor, MetLife, rather than the State of Minnesota for the administration of MN PFML.  The premium rate with MetLife is slightly less expensive than the State of Minnesota (.79% vs. .88%) and includes a two-year rate cap.  Minnesota employers are required to pay 50% of the Paid Family and Medical Leave premium.  Staff met with the union and have come to a tentative agreement, as follows and attached:

1. Effective January 1, 2026, the Employer and Employee will split the premiums for the Minnesota Paid Family and Medical Leave (PFML) on a 50/50 basis with the Employee share through payroll deductions pursuant to Minn. Stat. §268B.14.
2. Employees may utilize accrued paid leave to supplement PFML not to exceed 100% of the regular wage of the employee.
3. Wages resulting from the use of accrued leave that meet the PERA (Public Employee Retirement Association) definition of Eligible Compensation, shall receive all applicable PERA contributions concurrent with the use of the accrued paid leave.
4. In the event applicable state law changes, all Parties shall have the right to re-negotiate the terms of this MOA.

The funding required for this action has been included in the preliminary 2026 budget. 

To approve the attached Memorandum of Agreement.

Adopt resolution #25-265 to approve a Memorandum of Agreement between the City of Ramsey and Law Enforcement Labor Services - Captains, to address the Minnesota Paid Family and Medical Leave law, effective January 1, 2026.