Paid Leave MN Basics

Employers small and large will be included under Minnesota Paid Leave Law.  Full, part time and seasonal employees are covered, understanding your cost are obligations are critical.

There are two main types of leave - Family Leave and Medical Leave. Used separate, an employee can take up to 12 weeks each year, if combined and employee can take up to 20 weeks per year.

Starting on 12/1/2025, Employers will be responsible to educate their employees on the benefits and rights under the program. 

Minnesota Paid Leave is funded by premiums paid by employers and employees.  Annually, Minnsota will set a Premium Rate which will be multiplied by your annual payroll. The rate for 2026 is .88%. 

The premium can be split 50/50 between employers and employees with each paying .44 into the program. Employers can choose to cover the full cost of they choose. 

If you have less than 30 employees and your average salary is less than the statewide average of $107,000, then you are eligible to pay a lower rate of .66.  Employees still pay the .44, but you as the Employer only Pay .22

Small Businesses meeting the criteria above can also apply for up to $3k in funding to help off-set costs of bringing in new employees. 

Minnesota will allow private insurance carriers to offer Paid Leave Alternative Plans.  With a rate factor that could be lower than the state rate, and an easier administrative process, understanding the cost and admin benefits of a private carrier is a must. Paid Leave MN can help find the best solution. 

When it comes to Minnesota Paid Leave, understanding your options is critical. Our team of Advisors is available to help you understand this new legislation and can provide alternative plan options to help you save time and money.