Members of Minnesota's Fraud Prevention committee are meeting Wednesday to talk about how to prevent fraud from happening, as the state prepares to launch it's new paid family leave program.
The new program begins January 1 and will allow eligible employees to take up to 12 weeks for both family and medical reasons. Employees can take a maximum of 20 weeks total in one calendar year.
The program’s arrival comes after fraud has been uncovered in other state-run programs, including the massive Feeding Our Future fraud scandal, fraud within the state's housing stabilization programs, and funding for autism treatment.
The Committee Chair, Rep. Kristin Robbins (R- Maple Grove) questioned the Deputy Commissioner of the Department of Employment and Economic Development Evan Row.
"Just to be clear, so when you see something that's a credible allegation of fraud, you have authority currently for this program to stop payment," asked Robbins.
"Yes," stated Row.
Strengthened security measures within the program include multi-factor authentication, three levels of identity proofing to protect a user’s private information, and dynamic security that adapts to user’s behaviors and risk factors.
DEED will oversee the program. The new law offers payments and job protections to people who need time away form work for their own health, or to care for a family member.
“It is our strong hope that internal controls in this program are robust and are followed because we do not want to be back here a year from now having a fraud hearing,” said Robbins, who also is running as a candidate for governor.
Funded by payroll premiums split between employers and employees, the Minnesota Paid Family Leave program offers up to 20 total weeks of leave for qualifying events like welcoming a new child, caring for a family member, or dealing with a serious health issue.
“I’ve been really close to this program all the way through,” said Rep. Steve Elkins (DFL-Bloomington), “and if it bombs on implementation, I’m going to take it personally because I really do believe that we’re doing this right.”
Minnesota is the 13th state to implement a paid leave program. Payments are made by the state, and the application requires certification from a healthcare provider.
"Putting the controls in place up front is by far the most effective way," explained Legislative Auditor Judy Randall. "It's much better than pay and chase, which is what we have found ourselves doing in in some of the programs Rep. Elkins mentioned."