Minnesota Paid Leave Applies to Everyone

Paid Family Medical Leave (PFML or Paid Leave) is a mandatory state benefit that starts on January 1, 2026. Generally, all businesses are automatically signed up for Paid Leave. The only way for an eligible business to opt-out of the State’s Paid Leave plan is through a written exemption your business received from the State of Minnesota approving your private Paid Leave insurance plan. In other words, you cannot get out of providing Paid Leave to eligible employees by ignoring this mandatory state benefit. If individual employees want to opt-out of Paid Leave they are prohibited from opting-out. If you, as a business owner who is a W-2 employee want to opt out of Paid Leave, you do not have the option to opt-out.

As of January 1, 2026, you must withhold the employee portion of the Paid Leave premium if the business is requiring the employee to pay a portion. An employer can assess, at this time, a maximum of 0.44% of the premium to the employee. If you are not withholding the employee portion – or haven’t lawfully provided the employee notice of such deduction – then your business will be responsible for the entire premium.

Minnesota’s Paid Leave coverage provides payments and job protection for Medical Leave of up to twelve weeks and Family Leave of up to twelve weeks. Combined leave of Medical Leave and Family Leave cannot be more than 20 weeks in a year. The leave includes your own serious health condition, bonding with a new child, caring for a loved one, managing military leave and certain personal safety issues.

Spangler and de Stefano, PLLP advises employers about Paid Leave and an employer’s obligations under Paid Leave.

The material contained herein is for informational purposes only, and is not intended to create or constitute an attorney-client relationship between Spangler and de Stefano, PLLP and the reader. The information contained herein is not offered as legal advice and should not be construed as legal advice.