Update: On October 1, 2025, Minnesota released a Sample Employee Notice that employers can use to notify employees about Paid Leave by December 1, 2025.

Minnesota has established a Paid Family and Medical Leave (PFML) program. Starting January 1, 2026, eligible employees in Minnesota will be able to take up to 20 weeks of paid leave with up to 12 weeks for a serious health condition and up to 12 weeks for family and safe leave. Employees can take both types of leave in the same year but cannot exceed 20 weeks total within a benefit year. The benefit year starts the first day an employee takes Paid Leave.

Contributions to fund the program will also begin on January 1, 2026, with employers able to collect up to half (.44%) of the contribution of 0.88% of employees’ taxable wages.

Here are important actions employers must take before the program begins.

Set up employer accounts

Employers will need to create two separate accounts, one for contributions and one for leave administration. To simplify the process for employers, Paid Leave uses the same system as Unemployment Insurance (UI) for a few important parts of the program. Employers will use their UI account to:

  1. Report quarterly wage data: This information will be used to determine employee eligibility for Paid Leave payments
  2. Pay premiums starting in April 2026: Employers can start collecting premiums from employees in January 2026
  3. Designate a paid leave administrator

An employer’s Paid Leave Administrator will be required to create an account on paidleave.mn.gov to review leave applications, see paid leave determinations or request an equivalent plan substitution for 2026. Before an employer can create an account on the Paid Leave website, a Paid Leave Administrator must be designated within the UI system.

Determine the premium split between employees

Starting January 1, 2026, employers can deduct up to 50% of premiums from employee paychecks, however employers may choose to pay more than their required portion. For small employers, their standard contribution is reduced by half. To qualify as a small employer, an employer must have 30 or fewer employees, and an average employee wage of 150% or less of the statewide average ($107,016 in 2025). This reduced employer premium does not change the amount owed by employees. Employers can use the Premium Calculator on the Minnesota Paid Leave website for further assistance.

Understanding equivalent plans for paid leave

Employers can provide employees with an equivalent plan purchased from private insurance or can self-insure by providing coverage to employees themselves if the coverage meets or exceeds the coverage offered by the state. An equivalent plan can cover family leave or medical leave in combination with Minnesota Paid Leave or can cover both.

For employers who choose to offer an equivalent plan, there is a user-friendly process to submit the request within the Paid Leave Employer Portal. Employers seeking to have a private plan alternative to be approved and in place by January 1, 2026, should apply no later than November 10, 2025. Otherwise, Private Plans must start on the first day of a quarter and be in effect for a full calendar year. Employers that do not have an approved plan will be required to collect and remit premiums to the state plan.

Employers approved for an equivalent plan still have obligations under the law including submitting wage details. Employers cannot charge employees more than they would pay under the state plan (0.44% of wages in 2026) to fund an equivalent plan.

Update workplace policies

Employers will need to make decisions and update policy documents to reflect decisions regarding:

  • Notification requirements
  • Attendance and call-out procedures
  • Intermittent leave policies
  • Coordination with other payments
  • Coordination with other leaves

Notify employees

Employers are required to notify their workforce about Paid Leave in two ways:

  1. Hang a workforce poster in English and any language spoken by 5 or more employees or independent contractors
  2. Notify individual employees using this Model Notice (in their native language) within 30 days of hire or by December 1, 2025, which is 30 days before premium collection begins. Employers need employees to affirmatively acknowledge receipt or demonstrate how their workforce was notified.

For more information on the Minnesota Paid Family and Medical Leave Program, check out our Sequoia Foreword blog: Minnesota Passes Paid Family and Medical Leave Law.

Additional Resources:

Connect with a Sequoia consultant to learn how Sequoia’s compliance services are integrated in our benefits services and tailored solutions. And if you’re already a Sequoia client, stay on top of your employer obligations with your Compliance Checklist that highlights important compliance dates, action items, and resources.

The information and materials on this blog are provided for informational purposes only and are not intended to constitute legal or tax advice. Information provided in this blog may not reflect the most current legal developments and may vary by jurisdiction. The content on this blog is for general informational purposes only and does not apply to any particular facts or circumstances. The use of this blog does not in any way establish an attorney-client relationship, nor should any such relationship be implied, and the contents do not constitute legal or tax advice. If you require legal or tax advice, please consult with a licensed attorney or tax professional in your jurisdiction. The contributing authors expressly disclaim all liability to any persons or entities with respect to any action or inaction based on the contents of this blog. © 2025 Sequoia Consulting Group. All Rights Reserved.

Séamus McGuire — Séamus is a Compliance Specialist for Sequoia, where he works with our clients to optimize and streamline benefits compliance. In his free time, Séamus enjoys riding rollercoasters, attending Broadway shows and traveling with his husband.