Minnesota’s Paid Family and Medical Leave (Minnesota Paid Leave) program begins January 1, 2026. This program provides employees with paid leave benefits and job protections during significant life events.
The program is funded through employer-paid premiums, collected through the Minnesota Unemployment Insurance (UI) system using a quarterly reporting process. The contribution rate has been set at 0.88% of wages, with employers responsible for at least half of that amount. Employers may elect to cover a larger portion but can pass up to 50% of the premium cost on to employees.
All employers regardless of size are required to participate. Below is a quick checklist to help employers prepare.
Timeline and Checklist
Remainder of 2025:
- Finalize decision on how you will comply with the Paid Leave program. Determine how you will split premium costs between employers and employees.
- Determine if you are planning on utilizing the state to administer the benefit or a private insurance plan. If you are using an equivalent plan, you need to apply for the equivalent plan substitution by November 10, 2025.
- Notify employees of the MN Paid Leave program by December 1, 2025.
- Review your current employment policies and leave programs to align with Paid Leave.
- Designate a Paid Leave Administrator for your organization through the UI system. This is the individual who will be contacted when an employee files a claim.
January 1, 2026:
- MN Paid Leave benefit becomes available to employees.
- Employers may begin deducting the employee share of premiums, if applicable.
April 30, 2026:
- First MN Paid Leave premium payment due to the Minnesota Department of Employment and Economic Development (DEED).
- Covers wages paid January 1 – March 31, 2026.
- Continue quarterly wage reporting and timely remittance of Paid Leave premiums.
Employer Action Steps
- Confirm that your payroll system can support employee premium deductions (if cost-sharing is chosen).
- Review and update employee handbooks, leave policies, and payroll processes.
- Train HR and management staff on Paid Leave eligibility and job protections.
- Plan for staffing and scheduling needs during employee absences.
Every employer in Minnesota will need to adapt to the new MN Paid Leave program, but the right approach for your business may differ depending on your size, workforce, and existing benefits. We strongly encourage you to work with your insurance broker and legal counsel to evaluate the financial and compliance implications and determine the best course of action for your organization.
Resources
State of Minnesota Employer Resource Toolkit