Minnesota's Paid Leave: Key Considerations for Employers
Minnesota’s Paid Leave program is set to take effect on January 1, 2026, introducing a major shift in workplace leave policies. Designed to support employees facing critical life events, this new framework ensures workers receive paid family and medical leave while maintaining financial stability.
For employers, this change presents new compliance requirements and strategic decisions regarding workforce management. Businesses must begin preparing to meet reporting requirements, budget for contributions, and evaluate whether offering an equivalent private plan may be a better fit. Understanding the program’s structure and preparing in advance will help businesses seamlessly navigate these updates.
What Employers Need to Know
• Premium Contributions Begin January 1, 2026 Employers will be responsible for contributing to the program, with premiums set at 0.88% of wages. Employers must cover at least half of these contributions, but they can choose to pay the full amount to support their workforce.
• Quarterly Wage Reporting Starts October 31, 2024 Businesses must submit wage detail reports to ensure proper administration of benefits.
• Mandatory Employee Notifications by December 2025 Employers must educate workers about their rights under the program using official state-provided materials.
• Option for Equivalent Private Plans Companies that prefer to manage leave policies internally can offer an alternative plan, provided it meets or exceeds the benefits outlined in the state program.
Preparing for Compliance
Now is the time for businesses to assess their current leave policies, budget for contributions, and develop clear communication strategies to ensure compliance. Companies should consider how these changes align with existing benefit structures and whether an equivalent private plan might be a better fit.
More details about Minnesota Paid Leave and its implementation can be found here.
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Connect with Our Business Attorneys
Questions? Reach out to North Star Law Group’s Business Law Team! Our experienced attorneys are here to guide employers through the implementation process, ensuring compliance while optimizing workforce policies.
A big thank you to Law Clerk Simone for her help on this article!
