Perspectives

Countdown to Compliance-Be Prepared for Minnesota Paid Leave

News WFJ Law Firm

Big changes are coming for Minnesota Employers in 2026. Are you ready?

Beginning January 1, 2026, Minnesota’s Paid Family and Medical Leave (Paid Leave) program goes into effect. This state-mandated benefit will provide partial wage replacement for employees who need time away from work due to qualifying life events-like bonding with a new child, caring for a loved one, or managing a serious health condition.

What Employers Need to Know

Covered Employers and Employees

All private and public employers are covered under MN Paid Leave, except for the federal government. Most employees, full-time, part-time, temporary and seasonal, will qualify if they’ve earned at least $3,900 in the previous year and have performed at least 50% of their work in Minnesota.

When It Starts

Payroll deductions and benefits begin January 1, 2026.

First premium payments are due April 30, 2026.

Premiums and Contributions

The 2026 premium rate is 0.88% of wages, split even between employer and employee. Small employers (30 or fewer employees with average wages under 150% of the state average) will receive a reduced rate of 0.66%.

Qualifying Reasons for Paid Leave

  • Employee’s own serious health condition
  • Bonding with a new child after birth, adoption, or foster placement
  • Caring for a family member with a serious health condition
  • Family member’s active military duty
  • Safety leave related to domestic abuse, sexual assault, or stalking

Employee can take up to 20 weeks of combined family and medical leave per year.

Action Steps for Employers

  1. Set up your accounts: Create your UI/Paid Leave and Paid Leave Administrator accounts.
  2. Notify Employees by December 1, 2025: Post the MN Paid Leave poster and issue written notices.
  3. Decide on premium sharing: Determine your employer/employee split (default is 50/50).
  4. Consider supplemental benefits: Decide whether to offer PTO or disability coverage to supplement paid leave.
  5. Plan for intermittent leave: Employers must allow at least 480 hours per year.

Private Plans

Employers may opt out of the state program by offering an equivalent private plan-applications must be submitted by November 15, 2025 for coverage beginning January 2026.

Key Deadlines

  • November 15, 2025: Private plan submissions due
  • December 1, 2025: Employee notice and poster requirement
  • January 1, 2026: Program goes live; payroll deductions begin
  • April 30, 2026: First premium payments due

Need Help Getting Ready?

WFJ offers compliance support, HR consulting, and best-practice guidance to help employers prepare for MN Paid Leave.

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