Starting January 1, 2026, Minnesota is launching the Minnesota Paid Family and Medical Leave (PFML) program. This new program provides job protections and partial wage replacement for individuals unable to work due to a qualifying condition lasting at least seven days.
The PFML program provides eligible employees with 55-90% of their normal wages for qualifying absences and may take up to 12 weeks of medical leave plus 12 weeks of family leave; but limited to a total of 20 weeks of combined family and medical leave in a year. This time off can be used for various life events, like recovering from a serious illness, bonding with a new child, caring for a family member, or supporting a family member who is in the military. Employees on leave are paid a portion of their regular pay based on their average weekly wage, with lower-wage workers receiving a larger percentage of their usual wages. The program also gives job protection to employees who have been in their current position for at least 90 days. Employees are likely covered if they work at least half of the time in Minnesota and earn at least 5.3% of the state’s average annual wage (about $3,700) in the previous year.
PFML does not replace similar programs already in place. The federal Family and Medical Leave Act (FMLA) remain intact and covers unpaid, job-protected leave for eligible employees of larger employers. Similarly, Minnesota Pregnancy and Parenting Leave, which also provides unpaid job-protected time off for all employees in the state for the birth and adoption of a child, also remains intact. Furthermore, the Earned Sick and Safe Time (ESST) program is still in effect. EEST requires employers to provide employees with paid time off for similar qualifying reasons but more short-term than PFML.
Why does this matter for northern Minnesota’s business community?
PFML can serve as more than just a compliance obligation. Finding and keeping top talent for our workforce can be a competitive advantage. Employers that show support to employees through major life events, like having a child or caring for a family member, can build trust and employer reputation.
As a tourist destination, many local businesses here rely on a seasonal workforce. Employers in the hospitality industry should be aware of the Seasonal Hospitality Designation exception. This provision allows hospitality businesses whose six highest months of sales are at least three times greater than their six lowest months to exclude certain seasonal employees from Paid Leave coverage. Those seasonal employees that can be excluded are those who work 150 days or less in a 52-week period. Employers who qualify may avoid paying premiums on those wages but still must file quarterly wage detail reports and submit seasonal employee lists.
What Do Northern Minnesota Businesses Need to Do Now?
1. Create or confirm the Employer Account and designate a Paid Leave Administrator.
Employers must register through the state’s Unemployment Insurance system and designate someone or a small team as the Paid Leave Administrator to manage leave coordination, portal access, and compliance. For small and mid-sized employers that may not have a dedicated human resources team, completing this step early will help ensure compliance with the new law.
2. Prepare Your Workplace.
Decide between the State Plan or an Equivalent Plan.
The default option is the state-run plan. Alternatively, employers can offer an equivalent plan that meets or exceeds the state’s coverage, does not cost employees more, and covers all qualifying workers. If an equivalent plan is approved, paying state premiums will not be necessary but some state duties will still be required. The deadline for requesting equivalent plan substitution was November 15, 2025, so many employers defaulted to the state plan.
The state’s online calculator can help employers estimate their Paid Leave premium costs. The premium rate for 2026 is set at 0.88% of taxable wages (capped at the Social Security wage base). Employers must pay at least 50% of the premium, and up to 50% can be passed on to employees. For “small employers” (30 or fewer employees and average wages under a threshold), the employer portion is reduced. No matter what plan is selected, employers must still report wage-detail data each quarter.
Update Affected Company Policies.
Once a plan is chosen, it is essential that it be in line with employee resources. Employees must provide notice before applying for Paid Leave, so a clear process should be established for who will be notified and how.
Further, because Paid Leave only replaces a portion of an employee’s wages, employers may choose to supplement the 55 to 90% of wages paid under the new PFML law with other accrued but unused employee benefits, such as ESST, PTO, or vacation, with the limitation that an employee can make up to 100%, but not more than, 100% of their normal wages.
Finally, an intermittent leave policy should be implemented. Each employer can specify the shortest period employees can take off, which can range from one minute to one day. Employers can also specify how much time can be taken as intermittent leave. Employees who qualify may take up to 480 hours of leave intermittently each year. If someone qualifies for up to 20 weeks of leave per year, employers can decide whether that additional time can be taken intermittently or in one continuous block.
3. Plan for upcoming Deadlines.
- By December 1, 2025, employers must post the state-mandated Paid Leave poster and provide individually written notice to each employee of their rights under the program. Employers must get written or electronic acknowledgement from each employee that this information was received. Sample notices are available at https://mn.gov/deed/paidleave/employers/posters-notices/
- January 1, 2026, is when the program officially begins.
- Wage-detail reports are quarterly. The first quarter wage report is due April 30, 2026.
- Employers who did not submit a request to offer an equivalent private plan by the November 15, 2025, deadline, are automatically enrolled in the state plan and can have an equivalent plan take effect on April 1, 2026, at the earliest.
The Minnesota Paid Family and Medical Leave Program is a significant development for employees and employers in northern Minnesota. While it adds new responsibilities, it also provides an opportunity to improve workforce stability and support employees during significant life events. Employers needing any guidance or resources can find more information on the Minnesota Department of Employment and Economic Development Paid Leave site at https://mn.gov/deed/paidleave/ or contact the employment law attorneys at the Fryberger Law Firm at 218.722.0861.
Thomas R. Witt and Donald Erickson are attorneys with the Fryberger Law Firm, practicing in multiple areas of law including Labor and Employment. Haley J. Webb is a Law Clerk with the firm who assisted with this article. This article is not intended to provide legal advice. You should always consult with an attorney about your specific circumstances.
