As summer winds down in Minnesota, the hottest topic in employment remains our new state Paid Family Medical Leave (PFML) going into effect on January 1, 2026.
With virtually all employers, regardless of size or industry, required to comply with the new state paid leave program, everyone is looking for information and answers. We have sorted through a multitude of seminars, webinars, legal briefings and websites combined with our own experience implementing PFML to share a readiness inventory and important resources.
You May Be Ready If:
You know if you are a covered employer.
You probably are. Paid Leave covers Minnesota employers with one or more employees. The very few exceptions are for employees of tribal nations, the federal government, select seasonal employees, or self-employed individuals and independent contractors who choose to provide their own coverage for themselves.
There is no exception for small businesses, however, businesses with 30 or fewer employees are eligible for reduced premiums and lower application fees if you choose to a private plan.
There is no opt out and not being required to participate in Unemployment Insurance does not exclude you from complying with Paid Leave.
You know who your eligible employees are.
Most of your Minnesota based employees are probably covered. Here’s a short list of covered employee types:
- Full-time and part-time employees
- whose work location is in Minnesota.
- who work remotely and work at least 50% of their time from a location in Minnesota.
- who work remotely and do not work 50% of their time from a location in any one state, but who reside in Minnesota.
You have your accounts ready for action.
You have been filing your quarterly wage reports through your Unemployment Insurance account regardless of your Unemployment Insurance requirements.
The first reports were due on October 31, 2024, based on wages paid between July 1, 2024, and September 30, 2024.
You have created your Minnesota Paid Leave account through your Minnesota Unemployment Insurance account.
Learn more from DEED about Paid Leave and Unemployment Insurance Accounts including how to set them up and how the two work together: Employer accounts / Minnesota Paid Leave
Gone through all the online DEED account information and still have questions? We have found the Contact Center to be helpful!
- 651-556-7777 or 844-556-0444 (toll-free)
- 9:00 am to 4:00 pm, Monday through Friday (closed state holidays)
You have made the decision between whether to use the state plan and a private, equivalent plan.
Thinking about a private plan but haven’t acted yet? Please start now! Although the state deadline for submitting an equivalent plan application is November 10, 2025, many private plan carriers have earlier deadlines.
If you decide to explore private plan options, we suggest starting with your Short Term / Long Term Disability insurance carrier. If you don’t have one, this might be the time to consider moving comprehensive leave management to an outside expert.
Consider finding cost offsets by requesting a reduction in your Short-Term Disability rate in exchange for adding PFML management.
If you have decided to use a private plan you have:
- obtained certification of that plan from the carrier
- applied for approval from the state through your Minnesota Paid Leave account
- received approval from the state for your private plan option
- have worked with your carrier on the implementation of their plan
Learn more: Equivalent plans for Paid Leave / Minnesota Paid Leave
We will be back soon with more on premiums and leave pay, the importance of reviewing your other leave policies and benefits along with when, how and what to communicate to your employees by the December 1, 2025, deadline.
In the meantime, bookmark the DEED Paid Leave homepage for employers, sign up for their updates, and consider attending one or more of the many remaining information webinars including our own PFML Webinar on October 16. You can register HERE. A recording of our session will be available on our website afterward.
You can also visit the state’s Employer One-Stop Checklist to help you prepare for Minnesota Paid Family and Medical Leave:
Employers: Prepare for Paid Leave Today / Minnesota Paid Leave
Minnesota Paid Leave is complex and will continue to evolve as it is implemented. We’re here to share what we are learning but we are not employment attorneys, and this is not legal advice. Please consult your own employment law and human resource experts in making decisions for your company.