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Minnesota Paid Time Off Policy

Minnesota's new Paid Leave legislation, effective 2026, offers support for individuals to take time off when they or their family members require care. The Minnesota Paid Leave program aims to provide such assistance.

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Minnesota Implementation of Paid Leave Scheme
Minnesota Implementation of Paid Leave Scheme

Minnesota Paid Time Off Policy

The state of Minnesota is gearing up for the implementation of its Paid Leave program, which is scheduled to begin on January 1, 2026. This comprehensive program, designed to provide job protections and payments from the state for individuals who need time off to care for themselves or their loved ones, outlines several key roles and responsibilities for employers.

## Employer Obligations

1. **Reporting & Premiums**: Employers will be required to report wage data for their employees using the same online system as Unemployment Insurance (UI), which will help determine eligibility for Paid Leave payments. They will also be responsible for payroll deductions and premium payments for the Paid Leave program, with the first quarterly premiums due in April 2026.

2. **Education & Notification**: Employers must update policies and educate employees about the Paid Leave program, including posting workforce posters and providing individual notifications. They must also notify employees about Paid Leave benefits by December 2025.

3. **Leave Administration**: Employers need to coordinate other leaves and payments to employees on leave, ensuring compliance with all applicable laws. They must also support the return to work for employees after leave and restore them to the same or a comparable position.

4. **Benefits Maintenance**: Employers must maintain health insurance coverage for employees on leave, if offered while working.

5. **Optional Equivalency Plans**: Employers may opt-out of state premiums by offering a DEED-approved private plan that matches or exceeds state benefits.

6. **Collaboration & Improvement**: Employers are encouraged to collaborate on how to operationalize the law effectively and can provide input on how to improve the Paid Leave program over time.

7. **Retaliation Protection**: Employers are prohibited from retaliating against employees who request or take Paid Leave, with penalties for violations ranging from $100 to $10,000.

8. **Compliance with Rules**: Employers must comply with the final administrative rules published by the Department of Employment and Economic Development (DEED), which address topics like seasonal employees, private plans, and leave schedules.

## Preparing for the Program

Employers should consult with their tax professionals to prepare for the Minnesota Paid Leave program when it begins in January 2026. If an employer has some or all of their employees not covered by UI, they may need to create an account to submit wage details by October 31, 2024. Agricultural employers, being exempt from Federal and State unemployment, will need to create a "Paid Leave only" account with the state.

The Minnesota Paid Leave site provides more information about the program. The University will host free webinars addressing the Minnesota Paid Leave program later this summer.

This program will involve remitting premiums to the State of Minnesota through the UI portal. The Minnesota Legislature charged the Minnesota Department of Employment and Economic Development (DEED) with managing the Paid Leave program. Rob Holcomb is the website educator for the information provided in this article.

The Minnesota Paid Leave law was enacted in May 2023 and updated in May 2024. The law provides paid family and medical leave coverage to Minnesota workers, effective January 1, 2026.

[1] Minnesota Paid Leave website: https://www.mnpaidleave.org/ [2] Minnesota Department of Employment and Economic Development (DEED): https://www.deed.state.mn.us/ [3] ABM News: https://www.abmnews.com/ [4] ABM News source for this article: https://www.abmnews.com/2023/06/minnesota-paid-leave-program-employer-obligations/

  1. To promote workplace-wellness and ensure the mental-health of employees, employers in Minnesota must coordinate with the Department of Employment and Economic Development (DEED) to comply with the final administrative rules published by January 1, 2026, as part of the Paid Leave program, which includes maintaining health and wellness benefits for employees while on leave.
  2. In collaboration with the University and tax professionals, employers can take proactive steps to improve their workforce's health and wellness by preparing for the Paid Leave program, such as creating accounts to submit wage details for employees not covered by Unemployment Insurance, attending free webinars about the program, and consulting with tax professionals to stay informed about program requirements and implementations.

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