PFML Is Coming to Minnesota: What We’re Seeing Employers Miss — and How to Get Ahead

We’ve been getting a lot of questions lately about Minnesota’s new Paid Family & Medical Leave (PFML) program — and we completely understand why. For many small business owners, this is unfamiliar territory. It’s not that they don’t want to comply; they just don’t know where to start or what really needs to get done.

We’ve been helping businesses prepare for the January 2026 rollout, and we’re starting to see some common gaps — small things that could create big headaches later. The good news? With a little early planning, it’s all completely manageable.

Here’s what we’re noticing most employers are missing (and what you can do right now to get ahead).

1. Thinking you’re exempt because you only have one employee

PFML applies to every Minnesota employer — even if you have just one part-time or seasonal employee. We’ve seen a few small businesses assume they’ll be exempt because they’re not large enough for FMLA. Unfortunately, PFML works differently.

BYR Tip: Even if you’re a one-person shop hiring your first team member, plan ahead now. It’ll save you a scramble later when payroll contributions start in January 2026.

2. Assuming your payroll company will handle everything

Your payroll provider will handle the money part — collecting and remitting PFML contributions — but not the compliance side. That means they won’t:

• Designate your Paid Leave Administrator

• Update your handbook or wage-theft notice

• Provide the required employee communication forms

  
  

BYR Tip: Think of payroll as the “how” and BYR as the “what.” Payroll collects; you still need to document and communicate.

3. Waiting until the last minute to prepare

Private-plan approvals are due November 15, 2025, and you can’t submit a plan until your PFML Administrator is set up. That approval process takes time — and if you miss the deadline, you’ll automatically default into the state plan.

BYR Tip: Start now. With less than two months before PFML contributions begin, now’s the time to designate your administrator, review your payroll setup, and make sure your employee materials are ready. Acting early will make 2026 feel a lot less stressful.

4. Forgetting about required employee communication

Every Minnesota employer must give employees a written PFML notice — including benefit explanations, contribution breakdowns, and where to file claims. You’ll also need to provide an updated wage theft notice reflecting PFML contributions and deductions.

BYR Tip: Add both the PFML notice and updated wage theft notice to your onboarding process. That way, you’ll stay compliant for current and future hires without needing to re-send later.

5. Not updating your policies and handbook

PFML changes how existing leave policies work. If your handbook already includes PTO, sick leave, or parental leave, those sections may conflict with the new state benefit. We’ve seen several businesses realize too late that their “use PTO first” language doesn’t align with PFML — and that can cause serious compliance issues.

BYR Tip: Review your handbook now to make sure PFML language is clear and consistent with state requirements.

Where to start if this feels overwhelming

You don’t have to figure all of this out from scratch. We created the Build Your Roots PFML Toolkit for small Minnesota employers who want everything done right — without spending hours searching government sites.

It includes:

• A step-by-step setup guide

• Required employee notices and handbook updates

• Sample wage-theft notice language

• Employer checklist and administrator setup instructions

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It’s exactly what we use with our own clients — just packaged for you to do it confidently on your own.

Contact us at hello@buildyourrootshr.com to learn more about the PFML Toolkit.

Final Thought

Getting PFML right isn’t just about compliance — it’s about creating a people-first culture where your team knows you care. The earlier you start, the smoother 2026 will be.