Are you ready for the Minnesota Paid Leave Law?

Martin is a Shareholder and Francis is a Senior Attorney at Peters & Kappenman, P.A., a firm representing employers in a full range of employment law issues and litigation in Minneapolis, Minnesota.

The Minnesota Paid Leave law (PMFL) will provide paid leave benefits and job protections to employees starting January 1, 2026 – about two months from now. Employers must take steps now to comply with PFML.

• Determine whether you will participate in a state-administered PMFL program or provide an equivalent plan that meets or exceeds the state requirements. If you plan to use a private plan, prepare your application materials and submit them by November 10, 2025, in order to be approved by January 1, 2026.
• Register or verify your Employer Account in the IU/DEED system (uimn.org) and designate a Paid Leave Administrator. A Paid Leave Administrator will review leave applications for accuracy and view the Paid Leave Determinations in the DEED system.
• Determine how the premiums will be split with the employees. In 2026, the PMFL premiums are set at 0.88% of wages (up to the OASDI limit) for most employers. Most employers must cover at least half of the premiums. Please note that if you use an equivalent plan, you cannot require employees to contribute more than they would under a state-administered plan (0.44%).

2026 Contribution Rates for Minnesota Paid Leave

Total Premium Rate - 0.88%

Max. Employee Contribution Rate - 0.44%

Max. Weekly Benefit - $1,423

Min. Employer Contribution Rate - 0.44%

Min. Small Employer Contribution Rate - 0.22%

• Determine whether your business qualifies for the small employer exemption based on your quarterly wage detail reports. Employers who qualify for the small employer exemption are responsible for half the standard employer contribution. (See table above).
• Review and update your Employee Handbook and other policies/procedures.
  • Employers should implement a PMFL policy. The policy should define the benefit year calculation method and state whether the employer will allow employees to supplement PMFL benefits with PTO, vacation, sick leave or other benefits.
  • Employers should also review other leave policies, such as PTO, ESST, FMLA, short term disability to ensure compliance with Paid Leave and to ensure overpayments are not made.
• Evaluate whether you have any seasonal hospitality employees. If you have seasonal hospitality employees, you must make certifications to DEED about their employment. You must designate hospitality employees by December 1, 2026.
• Ensure that payroll and HR systems are ready to track the employee’s share of premiums.
• Provide PMFL notice to employees by December 1, 2025.
  • Employers must have the PMFL poster and the employee notice (Paid Leave Notice Sample) in English and any other language that is the primary language of five (5) or more employees or independent contractors in the workplace.
  • Employers must obtain written or electronic acknowledgment of receipt from the employees.
  • Any new hires after December 1, 2025, must receive the notice within 30 days of hire.
  • Employers who use the state plan should put the model notice in their Handbooks. Employers who use a private plan equivalent should work with their insurance companies to provide a notice.

• Ensure that managers and supervisors are trained on PMFL to ensure compliance.

If you have questions regarding the above or any other employment-related concerns, please contact Martin Kappenman at 952.921.4603 or mkappenman@pklaborlaw.com or Francis P. Rojas at 952.921.4624 or frojas@pklaborlaw.com, or any other attorney at Peters & Kappenman, P.A.