Paid Family Medical Leave (PFML)
Beginning January 1, 2026, all Minnesota employers, regardless of size, must comply with the state's new Paid Family & Medical Leave (PFML) program. The law introduces mandatory payroll contributions, expanded leave benefits, and posting requirements that may affect every workplace in Minneosta.
Our Frequently Asked Questions
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PFML is its own program. In most cases, PFML will run concurrently with other leave laws when both apply. Employers may still offer PTO, ESST, or Short-Term Disability. PFML does not replace those programs. Employees may be able to use STD or employer PTO to supplement PFML payments, depending on employer policy. Employers will need to review PFML alongside their existing leave and disability benefits. Policies and/or Employee Handbooks may need to be updated to ensure employees understand what runs concurrently and what can supplement PFML payments.
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No. Employers cannot require employees to use PTO, ESST, vacation, or employer-paid benefits before using PFML. Employees may choose to use other paid leave to supplement PFML benefits if the employer allows it — but the employer cannot force the order.
How PFML Works with Other Leave
When PFML Can Be Used
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PFML is its own program. In most cases, PFML will run concurrently with other leave laws when both apply. Employers may still offer PTO, ESST, or Short-Term Disability. PFML does not replace those programs. Employees may be able to use STD or employer PTO to supplement PFML payments, depending on employer policy. Employers will need to review PFML alongside their existing leave and disability benefits. Policies and/or Employee Handbooks may need to be updated to ensure employees understand what runs concurrently and what can supplement PFML payments.
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A health care provider must certify whether intermittent leave or consecutive leave is medically necessary. PFML claims are reviewed and approved by the State PFML Program or the Private Plan provider based on that medical certification. Employers do not decide which form of leave an employee uses.
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Yes, as long as both are medically certified and approved. PFML benefits can cover multiple qualifying events within the same benefit year. The limit is 20 total weeks combined.
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Employers with 30 or fewer employees in Minnesota qualify for the discounted 0.66% PFML premium rate. This includes full-time, part-time, seasonal, and temporary employees covered by PFML. Employers with 31+ employees are considered large employers and pay the 0.88% rate. Employee count is based on the average number of employees per calendar year.
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No. PFML premiums must be deducted starting January 1, 2026 (or at hire for employees who start after that date). The earnings requirement applies only to benefit eligibility, not when deductions begin.
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Yes. PFML premiums are state-mandated program contributions. Statutory payroll deductions (PFML, taxes, Social Security, Medicare) can reduce take-home pay below minimum wage. Minimum wage applies to the hourly rate earned — not net pay after legal deductions.
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Yes. Employers may choose to cover the full premium. Employers may not withhold more than 50% of their total PFML premium rate from employees — regardless of whether they are paying 0.66% or 0.88%.
What PFML Costs & Payroll Setup
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Private plans must be approved and it can take time. Rates may change in future years based on claims experience. Requesting quotes now gives employers options and comparison data before rates change.
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Yes. A private plan must be approved before it can be designated in the Minnesota UI employer portal.
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PFML premium rates may change based on claims experience and solvency. The legislature has already authorized possible increases up to 1.25% in 2027 without requiring further legislative approval.
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Yes. Employers can return to the state plan only at approved entry points. If the State PFML Program terminates an employer’s private plan for noncompliance, that employer cannot apply for another private plan for 3 years.
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If terminated for noncompliance, the employer cannot apply for another private plan for 3 years.
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Employers may return to the state plan at approved entry points, typically at the end of the private plan year. After returning to the state plan, the employer must remain in the state plan for the next plan year before applying again for a private plan
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Yes. Brokers can assist employers with side-by-side comparisons. If you need an introduction to a trusted broker, email Gina@VividJoyHR.com.
Private Plan Choices
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Possibly. Private plans are based on underwriting and risk. If an employer expects higher usage of bonding leave within their workforce, private plan quotes may reflect that usage expectation. Employers should compare multiple quotes before deciding.
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Employee count is based on the average number of covered employees during the year. Seasonal and temporary employees count.
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State updates rates based on the employer’s reported employee count — employers will be notified through the UI employer portal.
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Yes. PFML rate is based on the average employee count. If the average falls below 31 employees, the employer may qualify for the 0.66% rate in the next measurement period.
Rules for Small Employers
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Minnesota has not yet published official claim processing timelines. Based on other state PFML programs, claims are typically reviewed after the employee submits the required documentation, medical certification, and wage history. More detail is expected closer to the launch of benefits in 2026.
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Minnesota has not yet published the detailed process for how approved claims follow an employee when they change employers mid-claim (for state or private plan transitions). In other PFML states, eligibility is tied to the employee’s prior earnings history, not the employer, so approved leave can continue even when employment changes. More specifics are expected from Minnesota as implementation guidance is finalized.
Process and Administration
Important Dates & Cutoffs
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Yes. Private plan applications must be approved before January 1, 2026 to avoid starting state premium deductions. Employers should begin the quoting process early to allow time for approval. The State PFML Program is expected to have defined quarterly enrollment windows for employers who want to opt into or out of private plans after the initial 2026 launch.
Questions or
Need Support?
Attorney Contact: Annie DuBose, Canopy Business Law, PLLC
Email: adubose@canopylaw.com