Minnesota to Implement Paid Family and Medical Leave Act in 2026

The Minnesota Legislature recently passed the Minnesota Paid Family Medical Leave Act (MPFMLA), which will provide paid time off for employees who need to take leave for certain reasons, such as bonding with a new child, caring for a sick family member, or their own serious health condition.

The MPFMLA will not go into effect until January 1, 2026, but employers will need to start reporting wages to the state in mid-2024. The MPFMLA will cover all employers in Minnesota, regardless of size. Employers will be required to contribute to the MPFMLA fund, but the amount of the contribution will vary depending on the size of the company. As of now, the process of reporting has not been established and that will all need to be established in the next few years.

The MPFMLA will create some new administrative challenges for employers. Employers will need to track employee wages and benefits, and they will need to submit reports to the state. A dedicated system for tracking employee wages and benefits is highly recommended.

Employees will be eligible for up to 12 weeks (and in some circumstances, up to 20 weeks) of paid leave per year. The amount of the benefit will be based on the employee’s average weekly wage. There are no length of service requirements for employees to be eligible for the MPFMLA; however, to be entitled to reinstatement rights, the employee must have worked for the employer for 90 days.

The MPFMLA is a significant new law that will have a major impact on employers in Minnesota. Employers need to start planning now to comply with the law, including:

• Reviewing the law carefully.
• Contacting an employment attorney and/or HR professional for help in interpreting compliance requirements.
• Implementing a system to track employee wages and benefits.
• Preparing for the new reporting requirements.
• As 2026 approaches, updating handbooks, policies, paid leave administration and providing supervisor training.

By planning ahead, employers can minimize the impact of the law and ensure that they are in compliance. Our team is here to help – reach out to our team or request a follow-up conversation about this topic and the other topics we covered in this webinar series.