MN paid family leave law brings major employer changes

The Minnesota Paid Family and Medical Leave law is effective as of Jan. 1, 2026. It introduces major changes for employers, bringing new obligations. Preparation is essential to ensure compliance and avoid penalties.

The law allows up to 20 weeks of leave and paid benefits to take care of matters such as surgeries, pregnancy, caring for family members, and more. This includes up to 12 weeks of personal medical leave and 12 weeks of family leave, with a maximum of 20 weeks total. Employees will receive part of their normal pay. It covers many Minnesota workers, though there are some exceptions for workers such as seasonal hospitality workers and federal employees.

Employers must provide timely notice to employees and remember that non-Minnesota residents who work 50% or more of their time in Minnesota are eligible for PFML benefits. These employees must be included in quarterly wage reports, and premiums must be paid on their full annual wages. Out-of-state employers may still be subject to reporting, premium, and other requirements depending on where their employees work and live. Employers cannot require employees to apply for PFML benefits or to use sick time or PTO before applying. This decision is solely up to the employee.

Failure to comply can come with steep penalties. Failure to meet employee notice requirements can result in a $50 per employee fine for a first violation and $300 for each repeat violation. Employers may also be penalized for colluding with applicants to fraudulently obtain benefits or making false statements. Additionally, failing to disclose material facts to the state can lead to further penalties.

Emily C. Atmore, a labor and employment attorney at Stoel Rives, says that the most common question that she has received from employers of all types and sizes is whether the new law applies to them.

“Smaller employers often do not realize the law applies to nearly all Minnesota employers, unlike other Minnesota employment laws which have exemptions for small employers,” Atmore explains. “Multi-state employers are also sometimes surprised to learn that the law applies to all employees who work at least 50% of their time in Minnesota, including remote workers in Minnesota.”

She reports that she has been very busy lately fielding questions about the new law.

“Even multi-state employers who have navigated the enactment of other state-run paid leave programs have shared their anxieties about correctly complying with Minnesota’s robust paid leave program, which offers a combination of longer leave duration, higher wage replacement, and job protections, making it one of the most comprehensive programs of its kind in the country,” Atmore says.