Fraudulent Paid Leave Claims

Paid Family Medical Leave (PFML or Paid Leave) is a mandatory state benefit that started on January 1, 2026. Employees, including W-2 owners, cannot opt out of Paid Leave. Even if you have not followed the law and offered Paid Leave to your employees, your employees are eligible for it, and you will be responsible for the employer costs associated with it in addition to any penalties for not following the law.

Tens of thousands of claims have already been filed with Paid Leave. Some of those claims are fraudulent. It is important that you, as the employer, are dealing properly with the fraudulent claims. That includes individuals who claim that they are your employee and are filing a claim as “one of your employees” with the State of Minnesota. Even employers who have private plans have been contacted by the State of Minnesota with claims that purported employees are making with the State. It is important that you are promptly responding to any claims of fraud. This is the case also for claims from the State of a claim that appears fraudulent. It is important that you are contacting the state quickly and correcting the record so that the fraudulent claim by an individual who is not your employee does not proceed.

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.