Overview of the 2026 Minnesota Paid Family Medical Leave Law (PFML)
Covered Employers: This law applies to all employers in Minnesota, regardless of size, except the federal government and tribal nations.
Covered Employees: Eligible employees include full-time, part-time, temporary, and most seasonal workers. Remote employees are also covered. Independent contractors and self-employed individuals are not automatically eligible but may choose to participate in the Minnesota PFML program.
Qualifications to Obtain PFML:
To qualify for Minnesota’s PFML, an employee must:
- Earn at least 5.3% of the statewide average annual wage (approximately $3,700 in 2024).
- Have worked at least 50% of the time in Minnesota during a calendar year. If they do not meet the 50% threshold in Minnesota or any other state, they must have performed some work in Minnesota and lived in the state for at least 50% of the calendar year.
Type of Leave: PFML includes two main types of leave:
- Medical leave (up to 12 weeks): For the employee’s own serious health condition, such as pregnancy, childbirth, or recovery from surgery.
- Family leave (up to 12 weeks): For the employee to care for someone else, bond with a new child through birth, adoption, or foster placement, care for a loved one with a serious health condition, support a military family member called to active duty, or respond to certain personal safety issues, such as domestic violence, sexual assault, stalking, or similar issues.
Employees may take both types of leave in the same year, either consecutively or intermittently, but may not exceed 20 weeks total within the benefit year. The benefit year begins when the employee first takes PFML. To obtain leave, employees must provide certification from a healthcare provider specifying the need and duration of the leave.
Protections for the Employee
Job Protection: Employees must be restored to their job or an equivalent position when returning from PFML. Job protection takes effect 90 days after the employee begins employment.
Continued Health Insurance Premiums: Employers must continue paying the employer’s share of healthcare insurance premiums while the employee is on PFML.
No Retaliation: Employers may not interfere with or retaliate against employees who apply for or use PFML.
Premiums
PFML is funded by premiums paid by both employees and employers. The standard premium rate for 2026 is 0.88% of employee wages. Employer contributions depend on workforce size, with small businesses paying a lower premium.
Employers must pay the first premiums to the Minnesota Department of Employment and Economic Development by April 30, 2026, based on wages paid from January 1, 2026, to March 31, 2026.
Payments Made by the State: When employees use PFML, the state makes payments to them. Employees may receive up to 90% of their wages, depending on income, with a maximum weekly amount set at the state’s average weekly wage (approximately $1,423 at the start of PFML in 2026).
Steps Employers Should Take Now
- Review Current Policies: Compare existing paid leave and time-off policies with the new Minnesota PFML law.
- Notify Employees: By December 1, 2025, inform employees about their rights and benefits under this program. Notifications must be in employees’ native languages, and a workplace poster must be displayed in English and any language spoken by five or more employees.
- Begin Payroll Deductions: On January 1, 2026, employers must start deducting employees’ share of the premiums.
- Track Leave and Manage Benefits: Assign a Paid Leave Administrator to manage the company’s PFML account, track employee leave, and coordinate PFML with other time-off benefits. Train management and staff on the law and proper documentation procedures.
- Consult Legal Counsel: Work with an employment attorney to review policies, clarify obligations, and minimize compliance risks.
Benefits of Compliance
By proactively preparing for the new PFML law, employers can:
- Ensure a smooth transition when the law goes into effect
- Avoid disputes with employees
- Mitigate legal penalties and potential litigation
Minnesota’s PFML law represents a significant change affecting all employers and employees. Small businesses, in particular, should understand their obligations and how the law will impact operations.
For assistance implementing this law, including updating handbooks and policies, contact Holden Law Firm.
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