Minnesota’s new Paid Family and Medical Leave (“PFML”) program takes effect January 1, 2026, which is quickly approaching. This is one of the biggest changes to state employment law in years, and employers across the Twin Cities/State should be finalizing their preparations now to ensure compliance and avoid costly missteps.
What the Paid Leave Law Does
The PFML program provides up to 20 weeks of partially paid leave for eligible employees who need time off for major life events, including:
- Medical leave for a serious health condition
- Family leave to care for a family member
- Bonding leave after the birth, adoption, or foster placement of a child
- Safety leave related to domestic abuse, sexual assault, or stalking
- Military exigency leave for qualifying family members
The Paid Family and Medical Leave program is funded through a state-managed insurance system, with contributions shared between employers and employees.
What Employers Should Be Doing Right Now
1. Update Payroll Systems
Starting in 2026, both employers and employees will contribute to the program through payroll deductions. The initial premium rate is 0.88% of employee wages, the cost may be split evenly between employers and employees unless the employer chooses to cover more.
→ Action item: Confirm your payroll provider is ready to begin PFML deductions January 1, 2026, and ensure your budget reflects the new contribution rate.
2. Review Leave Policies and Benefits
If your company already offers parental, medical, or short-term disability leave, now is the time to make sure your policies align with the state program. You may:
- Integrate existing benefits with PFML
- Apply for approval of a private plan that meets or exceeds state requirements
→ Action item: Have your employment policies reviewed by legal counsel to confirm compliance and consistency.
3. Prepare Employee Communications
Employers are required to provide written notice to employees about their PFML rights and benefits. Clear, proactive communication will reduce confusion once the program begins.
→ Action item: Update your employee handbook and distribute the required notice before December 1.
4. Train Managers and HR Staff
Supervisors and HR professionals will be on the front lines of administering PFML. They’ll need to know how to respond to leave requests and how the new law interacts with FMLA (if applicable) or the current PTO policy.
→ Action item: Conduct brief training sessions or distribute internal FAQs.
5. Budget for Contributions
While contributions are modest, they still affect payroll and benefits budgets. The State may also increase the rate from .88% up to as high as 1.2%, which is the maximum allowed under the current law.
→ Action item: Review upcoming payroll cycles and ensure contributions are accurately factored in.
Why Acting Now Matters
With the law taking effect so soon, last-minute confusion can lead to compliance issues, administrative errors, or even employee disputes. Early action demonstrates responsibility, builds employee trust, and helps your business start 2026 smoothly.
How North Star Law Group Can Help
Our team assists Minnesota employers in preparing for Minnesota’s PFML rollout. We can:
- Review and revise handbooks and policies
- Draft compliant employee notices
The PFML countdown is on — make sure your business is ready.
North Star Law Group PLLC
Helping Minnesota businesses stay compliant, confident, and prepared. Contact us today.
