Paid Family and Medical Leave Coming to Minnesota

Minnesota has enacted a Paid Family and Medical Leave (PFML) law, set to take effect on January 1, 2026, offering employees up to 20 weeks of paid, job-protected leave for family and medical needs. This coverage allows employees to take time off to care for themselves or a loved one while still receiving a portion of their pay.

Employees will be able to use PFML to:

• Recover from their own health condition, including childbirth.
• Care for a family member with a serious health condition.
• Bond with a child.
• Take qualifying exigency leave.
• Take family violence leave.

Covered Employers

All employers must participate in Paid Leave, regardless of their size, unless they are specifically exempt from the law. There is no exemption for small employers; however, exceptions apply to employees of tribal nations, the federal government, and self-employed individuals who opt for their own coverage.

Small businesses with 30 or fewer employees can benefit from reduced premiums and may also qualify for funding to assist with hiring temporary workers or increasing the wages of current employees.

Eligible Employees

All employees are included in the coverage, with the exception of seasonal workers and independent contractors. To qualify for PFML, employees need to have base period wages totaling at least 5.3% of the state’s average annual wage, rounded down to the nearest hundred dollars. Self-employed individuals can also apply to join the PFML program.

Employer and Employee Premiums

Premiums for the program will be shared between employers and employees, with employees contributing no more than 50% of the total premium. Employers have the option to cover the full premium if they wish. The premium rate for the first year, 2026, has not yet been determined.

PFML premiums are paid through equal employer and employee contributions, discounted for small employers.

Employer and employee contributions begin Jan. 1, 2026, the same date benefits become available. The first premiums are not due until April 30, 2026, after the program launches, based on wages paid between January 1, 2026, and March 31, 2026.

Private Plan Option

Employers can apply for a private plan exemption starting in 2025. To qualify, the private plan must provide at least the same rights, protections, and benefits as those outlined in the Paid Leave law. Employers will need to submit documentation proving coverage and compliance with the law’s requirements. Private carriers will begin offering quotes for Minnesota PFML plans in 2025. Opting for a private plan will fulfill the employer’s obligations under the Paid Family and Medical Leave law.

To learn more about private plan options, contact Dyste Williams in the first or second quarter of 2025.

Learn more at https://paidleave.mn.gov/employers/