Minnesota Paid Family & Medical Leave: What Employers Need to Know Before 2026
- ahanson8192
- Oct 8
- 3 min read
By Build Your Roots HR Consulting
Helping small businesses grow strong foundations for compliance and people-first leadership.
A New Law That Impacts Every Minnesota Employer
Starting January 1, 2026, nearly every employer in Minnesota will be part of a new statewide Paid Family and Medical Leave (PFML) program.
Administered by the Minnesota Department of Employment and Economic Development (DEED), PFML will allow employees to take paid time off for medical or family reasons — similar to FMLA, but with wage replacement and broader eligibility.
This program is one of the biggest changes to Minnesota employment law in years. Whether you have one employee or hundreds, you’ll need to prepare your payroll, policies, and communication plans well before the law takes effect.
How PFML Works
Here’s a quick breakdown of what the new program includes:
Coverage begins: January 1, 2026
Administered by: Minnesota DEED
Who’s covered: Nearly all Minnesota employees
Benefits:
Up to 12 weeks for medical leave
Up to 12 weeks for family leave (with a 20-week max combined)
Reasons for leave:
A serious health condition (employee’s own or family members)
Bonding with a new child
Military exigency or caregiver leave
Safety leave related to domestic violence or assault
This program ensures employees have financial protection while managing life’s major events — and it ensures employers follow consistent, state-wide standards.
Who Pays for It
PFML is funded through a shared payroll contribution between employers and employees.
Total contribution rate (2026): 0.88% of gross wages
Employers pay 50% (0.44%)
Employees can be charged up to 50% (0.44%) via payroll deduction
Contributions start January 1, 2026, with the first payment due April 30, 2026.
For example: If an employee earns $50,000 per year, the total annual PFML contribution is $440 — $220 from the employer and $220 from the employee.
Small Employer Premium
Smaller organizations may qualify for a reduced employer contribution rate if they meet both of these criteria:
30 or fewer employees in Minnesota, and
Average wages below 150% of the statewide average wage.
DEED will notify eligible small employers each November before the next plan year.
State Plan vs. Private Plan Options
All employers are automatically enrolled in the state PFML plan, but you can apply to opt out by offering an equivalent private plan.
What Employers Need to Do Now
Preparation in 2025 is key. Here’s where to start:
Audit your leave policies — Update FMLA, PTO, parental, and short-term disability policies to align with PFML.
Review payroll systems — Confirm your provider can track and remit PFML contributions.
Designate a Paid Leave Administrator — Required in Minnesota’s UI system by January 1, 2026.
Budget for contributions — Include PFML in your 2026 payroll expense planning.
Train managers — Ensure leaders understand employee rights and job protection under PFML.
Communicate early — Employees will need clear, consistent information before deductions begin.
How Build Your Roots HR Can Help
At Build Your Roots HR, we help Minnesota employers navigate new compliance laws with confidence — without losing sight of their people or culture.
We can help your business:
Audit your leave and payroll policies for PFML readiness
Design compliant communication templates and handbook language
Train your managers on leave handling and employee communication
Evaluate whether an equivalent private plan makes sense for your business
Preparing early avoids compliance headaches later — and positions you as an employer who truly supports work-life balance.
Let’s Get You Ready for 2026
PFML is coming quickly, and the first quarter of 2026 will be here before we know it.If you’d like help preparing your policies and systems, schedule a PFML readiness consultation with Build Your Roots HR.
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