As of January 1, 2026, Minnesota employers are subject to a new, state-administered Minnesota Paid Leave (“Paid Leave”) program. The law provides eligible employees with paid, job-protected leave for qualifying family and medical reasons.

Almost all employers and individuals who work in Minnesota are considered covered under the new Paid Leave program. Eligible employees may receive up to 12 weeks for medical leave and 12 weeks for family leave, capped at 20 weeks total per benefit year.

Employees can take Paid Leave for both medical and family leave purposes. Medical leave covers an employee’s own serious health condition, such as pregnancy, childbirth, recovery, or surgery. Family leave includes bonding with a new child, caring for a family member with a serious health condition, responding to domestic violence, sexual assault, or stalking, for the employee or a family member, and supporting a family member called to active duty.

Employees with at least 90 days of service are entitled to be restored to their job or an equivalent position when they return from leave.

The program is funded through a payroll premium rate, which is set at 0.88% in 2026. Employers can collect up to 0.44% from employees, or they can choose to cover more. Employers pay a reduced premium rate if they employ 30 or fewer employees in Minnesota and the average employee wage is less than 150% of the statewide average wage. For 2026, the small employer premium rate is 0.66%. Employers that qualify for the small employer premium rate may still deduct up to 0.44% from employees. Employers are responsible for withholding employee contributions and remitting premiums.

Employers must provide employees with individual written notice of their Paid Leave rights, benefits, and premium contributions. A state-issued workplace poster must also be displayed by employers.

Minnesota’s Paid Leave law represents a significant expansion of employee leave rights and requires operational, payroll, and policy changes for employers with Minnesota employees. Koley Jessen will continue to monitor developments regarding Minnesota’s Paid Leave program. If you are unsure whether these changes impact your business or need assistance with compliance with Minnesota’s paid leave requirements, please contact a member of Koley Jessen’s Labor and Employment Law Group.

_{This content is made available for educational purposes only and to give you general information and a general understanding of the law, not to provide specific legal advice. By using this content, you understand there is no attorney-client relationship between you and the publisher. The content should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.}