In 2023, Minnesota enacted legislation creating a statewide Paid Family and Medical Leave program (the "Program"), which is set to take effect on January 1, 2026

In 2023, Minnesota enacted legislation creating a statewide Paid Family and Medical Leave program (the "Program"), which is set to take effect on January 1, 2026. The law established a publicly administered insurance program that is funded through employer and employee payroll contributions. This change aligns Minnesota with a growing number of states implementing similar programs at the state level.

Overview of the Program

Under the Program, eligible employees may take:

• up to 12 weeks of paid medical leave for their own serious health condition;
• up to 12 weeks of paid family leave for family care, such as bonding with a new child, caring for a family member with a serious health condition, certain military exigencies, and safety leave for issues related to domestic violence; and
• a maximum of 20 weeks of combined leave per benefit year.

Employers and employees will share the cost of the Program in the form of premiums on employee wages. Employers must cover a minimum of 50% of the premium and may deduct the remainder of the premium from employee pay. The Program also provides businesses with existing paid leave benefits the opportunity to apply for approval to use a private plan in lieu of the state program, provided the private benefits are equivalent or better.

Key Steps for Employers Before January 1, 2026

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