Beginning on January 1, 2026, the State of Minnesota will require employers with one or more Minnesota employees to comply with the Minnesota Paid Family & Medical Leave (MN PFML) Law.
Under MN PFML, Minnesota workers will be able to take paid time away from work to care for a family member or bond with a new child. Paid leave is also available for an employee’s own serious health condition or off-the-job injury. As in other states, workers’ compensation covers on-the-job illnesses or injuries.
The DBL Center is here to help insurance brokers and their Minnesota clients navigate Paid Leave laws and privatize benefits. We work with top-rated carriers to ensure that private plans meet or exceed the benefit amounts and duration of state insurance, with premium costs that are the same or lower.
Rates and Dates for Minnesota Paid Leave: What We Know
Employers should have submitted wage details for all workers by October 31, 2024. (Refer to the timeline below for other important dates to know.)
Employers will use the same online reporting system for Paid Leave as they already use for Unemployment Insurance.
Employers must pay at least 50% of the total premium cost for Paid Leave benefits, and are permitted to cover up to 100%. The remainder of premiums will be deducted from employee paychecks with pre-tax dollars.
When Will Deductions Begin?
Paycheck deductions begin January 1, 2026, which is the same date employees can begin claiming benefits. This is different from many states, where payroll deductions began in advance of benefit availability. The first premiums will be due from employers on April 30, 2026.
About the Benefits
Minnesota paid leave offers time off for military exigency, bonding and caring for a new child, caring for an ill or injured family member, or for an employee’s own medical condition.
Qualifying beneficiaries can take up to 12 weeks of family or medical leave in one benefit year, or up to 20 years combined if they claim family and medical leave at different times during the year.
For instance, a pregnant parent on bedrest might claim medical leave prior to giving birth, time to recover after birth, and family leave to care for their newborn after the baby is born.
Benefit amounts have not been set yet. The state of Minnesota indicates that employers can grant other types of paid leave, such as Paid Time Off, vacation time or sick time to supplement Paid Leave benefits or even to achieve full salary replacement during a worker’s time off.
What Is the Premium Rate?
The rate for Minnesota Paid Family Leave (2026) has not yet been set.
What Employers Need to Know About Minnesota Paid Leave
Nearly every employer with one or more employees is required to offer Paid Leave under the new law. According to the Minnesota Paid Leave website, only the following individuals and organizations are exempt:
- Tribal nations
- The federal government
- Self-employed individuals and independent contractors
Taxpayers who file as self-employed or as 1099 contractors may opt in or provide their own coverage.
Small businesses of 30 or fewer employees may qualify for reduced premiums or grants to help fund the Paid Leave program. Businesses mandated to provide coverage must offer these benefits to both full-time and part-time employees.
What Brokers Need to Know about Minnesota Paid Leave
The Minnesota Paid Leave program looks to be one of the more ambitious programs of its type across the U.S.
Here are some elements that set it apart:
- Nearly every employer must offer the benefit (no minimum workforce size)
- Benefits are available to full- and part-time employees
- Workers can claim up to 20 weeks of benefits, combined
Let The DBL Center Help You Privatize Paid Leave in MN
As in many other states, Minnesota offers business owners the opportunity to privatize their Paid Leave plan with a trusted carrier. Private plans must be certified by the Minnesota Department of Commerce.
The Minnesota Department of Employment and Economic Development has not yet revealed premium rates or benefit amounts. Yet, with options for a private plan, this new benefit opens doors for brokers in Minnesota and those in other states licensed to serve Minnesota.
Brokers who are already familiar with paid family leave programs are poised to serve as trusted advisors to Minnesota business owners seeking personalized service and more flexibility in their paid leave benefits.
The DBL Center has been writing paid leave across a growing number of states since 2017, when New York first introduced PFL, with benefits that remain some of the most generous in the country.
If you are a broker in Minnesota, The DBL Center is here to guide your clients through the world of required benefits. Additionally, our Broker Dashboard: Net Revenue Tracker helps you manage your policies and spot opportunities for growth.
Reach out today for help to get started introducing Paid Leave to Minnesota business owners.
