Key insights
- With Minnesota's new paid family leave program, employees can take up to 12 weeks of job-protected leave, for a combined maximum of 20 weeks for both family and medical leave in a benefit year.
- The new law provides job protections and partial wage replacement, paid by the state, to employees who take leave for a qualifying condition.
- Employers must contribute to the premiums through unemployment insurance payroll deductions.
Get custom guidance on employee benefit programs and regulations.
Paid leave benefits support employees who need time off to care for themselves or their loved ones. Discover how Minnesota’s new paid family leave program may impact your business while providing essential support during life’s critical moments.
New paid leave benefits in Minnesota
The law — effective January 1, 2026 — provides job protections and partial wage replacement, paid through the state, to individuals who take leave for a qualifying reason. The program is funded by premiums made up of contributions from both employer and employees.
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| Leave allowance in a benefit year |
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| Qualifying conditions for use |
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How can Minnesota employers prepare for paid leave laws?
Employee education
Review your organization’s current medical and family leave policies for proper compliance with the new law and inform employees of their new rights and benefits by December 2025 as required by the state. Employers will also be required to update policies and display workplace posters by fall 2025 to reflect the new law.
Reporting requirements
To calculate benefit payments and determine eligibility, the state requires employers to submit quarterly wage detail reports. This requirement went into effect on October 31, 2024.
Reporting includes statements of employee wages, which are necessary for calculating contributions to the program, submitted through the state unemployment insurance (UI) system. If your organization does not have a UI account, you can still register and submit the reports.
You can also choose to meet your responsibilities by providing employees an equivalent plan that meets or exceeds the coverage offered by the state. If you choose this option, you must apply for an equivalent plan exemption and will still be required to submit wage detail reports each quarter and comply with employee notification requirements.
Premium contributions
The program is funded through contributions collected through the UI account on a quarterly basis. Employers have the option to pay 100% of the premium or split the cost with their employees. At least 50% of the premium must be paid by the employer and deductions from employee paychecks may not begin until January 1, 2026.
How CLA can help with paid leave laws
CLA can provide guidance and resources to help your organization comply with the new program. Our team can help you understand changes to policy and reporting requirements, financial implications, and provide tailored guidance to align with the new regulations and employee communication.
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