The state of Minnesota sets deadline for Minnesota business owners to submit private plans for approval.
When you hear the words “it’s time,” what’s your first thought? Those of us of a certain age (i.e. Gen X and “older” millennials) hear a tired voice saying, “It’s time to make the donuts.”
We picture an older, balding man in a baker’s hat with a Mario Brothers-style mustache dragging himself out of bed to ensure Dunkin’ customers had fresh donuts every morning.
As funny as these commercials were, they presented an important point: Procrastination doesn’t pay.
Imagine if Fred the Baker had lingered in bed? Dunkin’ Donuts would have lost sales, even with few viable competitors at the time – this was long before Krispy Kreme or Starbucks! In the northeast, our parents would have run to the Entenmann’s Factory to snag the “black line” sales (75% off)! But we’d miss out on that massive box of Munchkins on our kitchen counter on Sunday mornings.
What Being Early Means For Your Business
As our readers relish sweet memories, let’s get to the point: You’re either first, or you’re last. “Early is on time, on time is late, and late is unacceptable,” as the old business adage goes. The DBL Center has adhered to this rule, being the authoritative source on paid family and medical leave programs since 2017, when New York first introduced Paid Family Leave. (See the full timeline of Paid Family and Medical Leave programs in the US here.) Our knowledge, expertise, and carrier relationships put us in a unique position as a wholesale general agency to help brokers usher in paid family and medical leave as they become available.
Now, let’s stop reminiscing about that sweet smell of breakfast treats and shift our focus to our readers in the Midwest, where Minnesota is the first state in the region to roll out mandatory paid family and medical leave.
What You Need to Know About Minnesota PFML
The state of Minnesota website has reported that the premium rate for paid leave in 2026 will be 0.88%. The premium will be split between employees and employers. Self-employed individuals can participate in the program by paying annual premiums and will be required to report net earnings to the state.
The state of Minnesota will pay 90% of average weekly wages for those earning up to $711.50 per week. Those earning $711.50 to $1,423 (the state’s average weekly wage) will earn 66% of their average weekly wage. Those earning more than $1,423 will receive 55% of their average weekly wage.
According to the state website, employees can take up to 12 weeks medical leave to care for themselves to receive treatment for or recover from a serious health condition, which includes pregnancy and childbirth, as well as illnesses or surgeries.
Employees can take up to 12 weeks family leave to care for someone else or manage certain home situations, including:
- Caring for or bonding with child following birth, adoption or foster placement
- Caring for a loved one with a serious health condition
- Supporting a military family member called to active duty
- Dealing with personal safety issues like domestic violence, stalking, or sexual assault
You can use both medical and family leave in the same year, but benefits cannot exceed 20 weeks within the benefit year, which starts the first day you take leave. Minnesota workers can take intermittent leave based on their needs and medical condition.
Help Your Clients Privatize Minnesota Paid Leave Before It’s Too Late
As in many other states, Minnesota is allowing employers to write Minnesota PFML through a private plan – either through a private carrier or self-insured. All private plans must provide equal or better coverage than the state plan. Proposals for a private plan must be sent to the state by November 10, 2025, for approval. The state may extend this deadline or accept applications after that date, potentially up to January 1, 2026, when employees can begin claiming benefits.
That means our brokers licensed to sell insurance in Minnesota should be reaching out to all your clients now to recommend privatizing PFL. Private plans through insurance carriers must offer the same or better coverage than the state plan, with premium costs the same or lower and equal job protection. Employers with a private plan must still submit quarterly wage detail reports to the state.
As brokers know, there’s often significant lag-time between introducing clients to the idea of privatizing mandatory benefits for cost savings and better service and the employer’s final choice. This consideration process may require multiple calls, client education, and expert guidance. The DBL Center is here to help.
When it comes time to quote a private plan, we serve as your back-office staff so you can focus on what you do best: insurance sales.
FAQ
Does Minnesota have paid family medical leave?
As of January 1, 2026, Minnesota becomes the next in a growing list of states to require employers to provide paid family medical leave. The Minnesota Paid Leave program offers partial wage replacement to care for serious medical conditions of their own, care for an seriously ill or injured family member, or bond with or care for a newly born, adopted or foster child within the first year. Minnesota Paid Leave also covers time off during a military family member’s deployment or to manage personal safety issues.
What is the PFML rate in Minnesota?
Minnesota workers can claim paid leave benefits of up to 90% of their wages for up to 12 weeks of medical leave and 12 weeks of family leave, not to exceed 20 weeks in one benefit year.
Who is exempt from MN paid leave?
Most Minnesota businesses must provide paid leave to workers beginning January 1, 2026. However, the US federal government and tribal nations are exempt from the requirement, according to MN.gov. Self-employed and independent contractors may opt in to paid leave. Employees who work less than 50% of their time in Minnesota are not covered by Minnesota Paid Leave.
