Minnesota’s New Paid Leave Program

by | Nov 7, 2025 | Business Law, Employment Law, Legislation Changes

The Minnesota Legislature passed the “Minnesota Paid Leave Law” in 2023 and charged the Minnesota Department of Employment and Economic Development (DEED) with implementing the program. The program and its requirements will apply to essentially all Minnesota private employers. Starting in January 2026, employees will be able to begin taking Paid Leave. If you are an employer, there are several steps you must take to prepare for changes taking effect in January 2026.

Here’s what you need to know and do:

For Employers:

  • AS SOON AS POSSIBLE: Set up Paid Leave Administrator Accounts

    • Most employers already have an unemployment insurance Employer Account. The first step in creating a Paid Leave account will be to log into the employer’s unemployment insurance Employer Account.  If an employer does not have an existing unemployment insurance Employer Account, it should register for one at uimn.org.
    • Designate a Paid Leave Administrator in your unemployment insurance Employer Account. This person will be the main point of contact between the employer and Minnesota Paid Leave. A step-by-step guide is found
    • Create a Paid Leave Administrator account at paidleave.mn.gov. This is where administrators can review leave applications and view Paid Leave determinations.

  • BY NOVEMBER 15, 2025: Private Equivalent Plan Deadline

    • Employers can choose to offer a private equivalent plan in lieu of participating in the State’s program. If an employer goes this route, it will need to submit its equivalent plan request to the State by November 15, 2025, if it wants the private plan to be in place by January 1, 2026.  An employer can always submit a request to switch to a private plan later, but if it waits, the employer will need to participate in the State’s plan until at least April 1, 2026.
    • If approved for an equivalent plan, an employer must still submit wage detail reports to the State each quarter and comply with the notification requirements about paid leave coverage.
    • Additional information regarding equivalent plans can be found HERE.

  • BY DECEMBER 1, 2025: Employee Notices

    • Employers must notify their employees about Paid Leave by December 1, 2025 – both by hanging a Paid Leave poster and by providing written notices to each employee.  Each employee must acknowledge receipt of the written employee notice.  The required poster and standard employee notices can be found HERE.

  • BY JANUARY 1, 2026: Minnesota Paid Leave & Your Company Policy

    • Employers will want to make some decisions about how Paid Leave will work at their company before the program starts in January. For example, employers will need written policies addressing their notification process if employees decide to apply for paid leave, when other leave programs will run concurrently with Paid Leave, and intermittent leaves.  All of these things (among others) should be addressed in a written handbook section or standalone policy.
    • The State just announced that it plans to open applications early for all parents who welcomed a child in 2025.  While there is not a set date yet, employers should have as much information prepared as possible so they can act proactively if these parents with eligible bonding leave will be applying for leave starting January 1, 2026. 

For Employees:

  • Determine if you’re covered.

    • Paid Leave coverage extends to nearly every employee.
      • Except: independent contractors, self-employed individuals, and Tribal Nations, but you may opt-in.
      • Federal government employees, seasonal hospitality employees that have been notified they are exempt by their employer, and railroad employees are not covered for their work at those jobs, and cannot opt in.
    • To qualify for Paid Leave, you must have:
      1. Worked at least 50% of the time from a location in Minnesota;
      2. Earned at least $3,900 in the last year (can come from one job or be combined for multiple jobs);
      3. Experienced a qualifying event lasting at least seven days; AND
      4. Not already used up your leave for the year.

A qualifying event means something has happened that makes you unable to work such as:

      • Your own serious health condition
      • Welcoming a child (if you welcomed a child in 2025, you may also be able to take Medical Leave in 2026. More information on Paid Leave for birth and bonding found HERE.)
      • Caring for a loved one
      • Supporting a family member’s active duty
      • Responding to safety concerns like domestic violence, sexual assault, or stalking.
      • Learn more about who’s covered HERE.

  • How much money will you receive?

    • Your payment is based on how much you normally earn. Most people will receive between 55% and 90% of their regular wages while on leave, with a maximum weekly benefit set at the state average wage.

  • Employment Protections

    • All Minnesotans are protected against retaliation when they apply for or take Paid Leave. Your employer cannot fire you, demote you, cut your hours, or discipline you because you took or requested leave under this program.

  • How to Apply – Benefits Begin on January 1, 2026

    • Detailed information on how to apply for Paid Leave will be provided as the program launch date approaches. Stay informed by signing up for Paid Leave updates for Individuals.

  • Visit the Paid Leave Employee website for more information.

Sanford, Pierson, Thone & Strean, PLC is prepared to answer any questions you may have, as well as assist with the preparation of employee notices and a written paid leave policy. Please give us a call at 952-404-2100 to speak with one of our attorneys about Minnesota Paid Leave.