Minnesota’s New Paid Leave Program: What Employers Need to Know

Starting January 1, 2026, Minnesota will roll out its Paid Family and Medical Leave  program, a major step forward in supporting workers during life’s important moments. Whether it’s bonding with a new child, caring for a sick family member, or recovering from a serious health condition, employees will soon have job-protected, partially paid time off.

Here’s what Minnesota employers need to know:

What Is Paid Family and Medical Leave?

The Minnesota Paid Leave program provides employees up to 20 weeks of paid leave per year:

• Up to 12 weeks for medical leave (your own serious health condition)
• Up to 12 weeks for family leave (caring for a family member, bonding with a new child, or safety leave for domestic violence)
• The total combined leave cannot exceed 20 weeks annually.

Who Pays for It?

The program is state-administered and publicly funded. Starting in 2026, funding comes from a payroll tax shared between employers and employees.

• Total contribution rate: Around 0.88% of wages (subject to change each year)
• Employers and employees split the cost 50/50
• Please note: Premium deductions cannot cause an employee to make less than the required minimum wage under applicable law. This may require employers to cover more than half of the premium.

Small employers (fewer than 30 employees) can choose not to pay the employer portion, but employees will still contribute and be covered.

Who Is Covered?

All employees working in Minnesota, including:

• Full-time
• Part-time
• Seasonal
• Remote employees who work in the state at least 50% of the time

Independent contractors and self-employed individuals can opt in.

When Does It Start?

• Contributions and premiums start January 1, 2026
• Benefits become available to employees at the same time

What Employers Need to Do

Here’s how to prepare:

1. Plan for payroll deductions – Work with the Anthros team to ensure systems are set up and ready to begin collecting employee contributions.
2. Communicate with your employees – Share info about the new benefit and what it means. A workplace poster will be required to be displayed by December 1, 2025.
3. Update leave policies – Align current policies with the new state requirements.
4. Monitor updates from the state – Minnesota will continue to release more information and tools for compliance.

Can Employers Offer Their Own Plan?

Yes! Employers can opt out of the state program if they offer a private plan that meets or exceeds the state’s benefits and protections.

• Must be approved by the state
• Cannot cost employees more than the state plan

Final Thoughts

Minnesota’s Paid Leave program is a big change and a big opportunity. It can improve employee well-being, increase retention, and level the playing field for businesses of all sizes. Start planning now so you’re ready for a smooth transition in 2026. Continue to check back here for the latest updates or reach out to the Anthros team with any questions.