The Minnesota Legislature is at it again...

Many employers are not even aware of this law which was passed last year requiring employers & employees to pay an additional payroll tax or find a private option which will offer your employees up to 12 weeks for medical leave and 12 weeks for family leave.  Here are few of the bullet points:

📝 Minnesota Paid Family and Medical Leave (PFML) – At a Glance
📅 Effective Date

• January 1, 2026

👥 Who’s Covered

• All Minnesota employees, including full-time, part-time, and seasonal workers
• Applies to both public and private employers

📌 Types of Leave

• Medical Leave: For an employee’s own serious health condition, including pregnancy and childbirth recovery
• Family Leave: To care for a family member with a serious health condition, bond with a new child (birth, adoption, or foster), address certain military-related events, or handle personal safety issues

⏳ Duration of Leave

• Up to 12 weeks per year for medical leave
• Up to 12 weeks per year for family leave
• Maximum combined leave of 20 weeks per benefit year

💵 Wage Replacement

• Benefits are calculated based on a percentage of the employee’s average weekly wage, with a maximum weekly benefit equal to the state’s average weekly wage (SAWW), which is $1,372 as of 2025

💰 Funding the Program

• Funded through payroll taxes shared by employers and employees
  • Employer with less than 30 employees and pay 50% with a grant.
• Initial premium rate set at 0.88% of wages, subject to adjustments

🏢 Employer Options

• Employers can participate in the state-run program or offer a private plan that provides equal or greater benefits
• Private plans must be approved by the state

📆 Key Dates

• October 31, 2024: Employers submit first quarterly wage detail reports
• December 1, 2025: Deadline to notify employees about the program
• January 1, 2026: Benefits become available; payroll deductions begin
• April 30, 2026: First quarterly premium payments due

We have private options with various carriers to help you control this additional cost of running your business.  You do not want to get in and not be able to leave the state pool.

For more information watch this video.