Liz Stone, HR Business Partner, with Pro Resources, reviewed details of the new Minnesota Paid Family and Medical Leave (PFML) program as businesses and employees prepare for the January 1, 2026 launch. Liz was the featured guest speaker at the November CMBA Government Affairs meeting.

She covered:

• Paid Family and Medical Leave Fundamentals
• Private Plan vs. Public Plan
• Interaction with Supplemental Benefits
• Interaction with Other Leave
• Prepare Your Workforce
• Administer Leave
• In-house vs. Outsource

For more information about the program and how to comply, you can visit Minnesota's Paid Leave web site: Click here.

Businesses and employees will have to pay into the program starting in January.  Employers must register with the state, designate a Paid Leave Administrator in their company, and post notices to employees.  Employers are also required to submit quarterly wage detail reports through the state's existing Unemployment Insurance (UI) system. The program applies only to employees who work all or most of the time in Minnesota.

To fund the PFML program, starting in January, employers and covered employees will each pay a premium set as a percentage of payroll (0.88% of wages) which can be split up to 50/50 between employer and employee (0.44% each).  The deduction will be visible on pay stubs, and employer payments will be due quarterly.

Smaller employers (30 or fewer employees) that have an average wage below a certain threshold can qualify for a reduced premium (0.66% of wages).  Even single-person LLCs taxed as S corporations must participate.

Employers can choose to provide a qualified self-insured leave program through a third-party administer.  Such self-insured programs must offer benefits that meet or exceed the state program, and must be approved by the state.

Once eligible, a qualified employee can take up to 12 weeks of medical leave (for their own serious health condition or pregnancy), and/or 12 weeks of family leave (for bonding with a new family member, caring for a family member with a serious condition, safety leave, or certain other qualifying reasons).  The combined maximum cannot exceed 20 weeks per benefit year.

During leave, the state program replaces a portion of the eligible employee's wages up to a capped weekly maximum.  Qualified employees (90 or more days with the company) must be reinstated to the same or a comparable job upon returning from leave, and health insurance coverage must continue during leave.

DISCLAIMER:  CMBA offers this brief, general summary of Minnesota PFML to help generally inform its members.  This article is not an exhaustive or official list of all requirements, costs, benefits and penalties under the program.

For more details, you are encouraged to contact a knowledgeable Human Resources (HR) professional, and the Minnesota Paid Leave Department.

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