9.15.21 Children of Child Care Providers
ISSUE DATE: 03/2026
Non-center providers
The following providers are NOT eligible to receive child care assistance for their own children or children in their family during the hours they are providing child care or being paid to provide child care:
These providers are eligible to receive child care assistance for their children when they are engaged in other authorized activities, as long as the hours do not overlap with the hours they provide care or with the hours they are being paid to provide care. For example, if a licensed family child care operates from 7am to 5pm, care cannot be authorized for the provider or their employees between the hours of 7am and 5pm. Care could be authorized at a different provider after 5pm if they have another authorized activity, such as restaurant employment.
If a parent with no other authorized activity is employed at a licensed family home, as a legal nonlicensed (LNL) provider, or is providing child care in any setting other than a child care center, the employment may be an authorized activity for purposes of determining CCAP eligibility but care cannot be authorized. The family’s case is suspended if there is no other authorized activity.
Note: For families eligible for the Expedited Child Care for Families Experiencing Homeless policy and with a parent providing child care or being paid to provide child care as identified above, the family can be authorized up to 30 hours per week outside of the hours the parent is providing care. If the family does not request care outside of the parent’s work hours as a provider, suspend the case. See Chapter 8.9 (Suspending) and 9.1.15 (Authorizing Care – Expedited Child Care).
This does not apply to licensed centers or certified centers and their employees.
Licensed centers and certified centers
No more than 25 center employees’ children or dependents can be authorized for child care assistance per child care center.
For the purposes of this policy, “child or dependent” means the center employee is the child’s birth or adoptive parent, stepparent, legal guardian, relative custodian, successor custodian, foster parent, or Minnesota Family Investment Program (MFIP) caregiver. “Center employee” means a person who is:
Denying Service Authorizations
Before authorizing care for any center employees’ children, generate the MEC² report PV107, CCAP Center Employee Report, to determine how many children of center employees are currently authorized. If the number of employees’ children authorized is 25 or above, deny the family’s authorization using the “Authorization Denied” reason code. Include the following text in the Worker Comment section of the Service Authorization Denial:
This provider cannot be authorized to care for additional children of employees at the center (MN Stat 142E.10, Subd. 10). You are still eligible for the Child Care Assistance Program. You may choose another child care provider. If you need help finding a new child care provider, contact Parent Aware at 1-888-291-9811 or http://parentaware.org/. Once you choose a new child care provider, call your child care assistance worker to let them know the new provider’s name, address and phone number. The new provider you choose must be registered before payments can be made.
Do not open new authorizations for additional employees’ children until the number of employees’ children authorized falls below 25.
Closing Service Authorizations
If additional Service Authorizations are approved in error when a center already has 25 or more employees’ children authorized, close the Service Authorization of any child over the limit with a 15-day notice. Terminate the authorization of the child or the children most recently authorized until the center is within the limit of 25 center employees’ children.
Example: According to the PV107 Report, a center has 25 children of center employees authorized. On Monday, County A incorrectly authorizes three children of center employees at the center, putting the provider at 28 children of center employees. On Wednesday, County B incorrectly authorizes one child of a center employee, putting the provider at 29 children. County A must close the authorizations for these three children as they were most recently authorized, and County B must close the authorization of this one child who was most recently authorized. Closing these Service Authorizations with 15-day notice will bring the center back within the 25-child limit.
In instances where multiple children from the same family are authorized at the same time and results in the center being over the 25-child limit, consult with the family on which child(ren)’s authorization to close to bring the center within the limit.
Example: According to the PV107 Report, a center has 23 children of center employees authorized. Care was incorrectly authorized for four children from the same family at the same time, and the provider now has 27 children of center employees authorized. Two of the authorizations must be terminated to bring the center back within the 25-child limit. Because the four children from the same family were authorized at the same time, consult with the family on which two children’s authorizations they wish to remain open, and close the other two authorizations with a 15-day notice. The family may also choose to have all four of the children’s Service Authorizations closed. Allow the family 15 days to respond to the request. If the family does not respond, care must end for all children with a 15-day notice.
If a child is authorized at a child care center where their parent does not work, but the parent later becomes employed at the center, review the PV107 report. This includes situations where the parent was authorized using job search, education, another employment activity, or the expedited child care activity exemption. If the center is authorized for 25 or more center employees’ children, close the child’s Service Authorization with a 15-day notice.
Families can choose another eligible provider for a child whose authorization closes.
Center employee temporary or permanent activity end
See Chapter 9.15.3 (Care During Temporary Breaks from Authorized Activities) for information about eligibility and authorizations when a parent has a temporary break from their activity.
See Chapter 9.15.6 (Extended Eligibility) for information about eligibility and authorizations when a parent has a permanent end to their only authorized activity.
Overpayments
Do not assess overpayments for periods when a provider is authorized for more than 25 employees' children.
Appeals
Child care centers do not have a statutory right to appeal an adverse action taken as a result of the center employee law. A family may file an appeal if they disagree with an agency’s action to enforce the center employee law.
All Provider Types – Changes during the 12-Month eligibility period
During the 12-month eligibility period:
Legal authority
Minnesota Statutes 142E.01, subd. 14
Minnesota Statutes 142E.10, subds. 9 and 10
Minnesota Statutes 142E.11, subds. 1 and 3
Minnesota Statutes 142E.18, subd. 2
Minnesota Statutes 245C.02, subd. 9
Minnesota Statutes 245C.03, subd. 1(a)(3)
Minnesota Rules 3400.0020, subp. 12c
Minnesota Rules 3400.0040, subps. 4 & 4a
Minnesota Rules 3400.0110, subp. 3c
45 C.F.R. § 98.43(a)(2)(ii)
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