November HR Updates: Final Preparations. Minnesota Paid Leave

The Minnesota Paid Leave law will be law on January 1, 2026, covering most employers in the state. Here are a few steps employers need to take to be prepared now and in the new year.

PFML Basics.

As a reminder, the new law will provide:

• Family Leave. This will provide paid time off to bond with a child through birth, adoption, or foster placement; for an employee to provide care for a family member with a serious health condition; to provide care for a military family member called to active duty; and to respond to personal safety issues such as domestic violence, sexual assault, or similar.
• Medical Leave. This will provide paid time off for an employee when a serious health condition prevents the individual from working.

Upon implementation, eligible individuals will be entitled to a maximum of twelve weeks of family leave or a maximum of twelve weeks of medical leave in one benefit year. If an individual uses both medical and family leave within a single benefit year, paid leave will max out at twenty weeks. The new law will provide job protected leave (after ninety days of employment), so that means the employee has a right to the same or similar position upon returning to work. The employee will also maintain benefit coverage (if applicable) while on leave for things like health and life insurance.

Paid Leave Administrator

Employers are required to designate Paid Leave Administrator(s). An employer is allowed to designate more than one PLA. Step-by-step instructions are available on the PFML site to guide PLA designation.

Equivalent Plan

Employers opting for an equivalent plan must take the steps to request an Equivalent Plan Substitution prior to the deadline and pay a nonrefundable fee of $250, $500, or $1000 depending on employer size.

Required Workplace Poster

Minnesota DEED (Department of Employment and Economic Development) has published two versions of a required poster, one for employers utilizing the state plan and one for employers utilizing an equivalent plan.

Employee Notice

Employers must provide notice to employees by December 1, 2025. DEED is providing a sample Employee Notice, again in two formats for either the state plan or an equivalent plan. HR tip: make sure to obtain employee signatures and retain the notice in personnel files.

Deductions

Employers sharing the cost of premiums with employees should be prepared for payroll deductions for the first payroll in 2026. Check with your payroll provider and/or your payroll software to make sure you will be ready. Remember that PFML deductions cannot drop employee pay below Minnesota minimum wage.

Premiums

The premium rate will be 0.88 percent. Employers may split the cost of premiums with employees. However, employers must pay at least 50% of the total premium (and may pass along 50% of the premium to employees). Employers may opt to pay up to 100%. The first premium payments will be due on April 30, 2026, and will be based on wage detail reported between 1/1/26 and 3/31/26. Small employers (currently defined as having 30 or fewer employees) may be eligible for a reduced premium rate if the average employee wage is less than 150% of the statewide average weekly wage. DEED provides an “unofficial” online calculator to assist employers in estimating costs.

Policy Updates

Remember to update your Handbook to incorporate PFML language.

Does PFML replace ESST or Minnesota Parental Leave?

It is critical for employers to understand that PFML does not replace either ESST (Earned Sick and Safe Time) or MPLA (Minnesota Parenting Leave Act).