Certain S corporations exempted from the paid leave program.

HF 3597 exempts corporate officers of S corporations who own 25% or more of the company (directly or through subsidiaries) from Minnesota's paid leave program. The bill amends state law to exclude these officers from the definition of "employee," meaning they will not be eligible for paid leave benefits. This change applies specifically to officers who meet the ownership threshold under IRS rules for S corporations. The exemption clarifies that such officers are not covered by the state's paid leave requirements, aligning with existing exclusions for self-employed individuals and independent contractors.