MN Paid Family + Medical Leave Basics - What you need to know and what it will cost you!

Starting in 2026, Minnesota’s Paid Family and Medical Leave (PFML) program will provide employees with paid time off for major life events — such as caring for a new child, a seriously ill family member, or one’s own medical condition. Employers and employees will share the cost through a small payroll tax, similar to unemployment insurance.

Understanding deadlines, costs, and compliance is essential. Employer registration opens in 2025, with payroll deductions and reporting beginning January 1, 2026. Knowing these dates allows organizations to budget, adjust HR systems, and communicate changes with staff early.

The cost of non-compliance — both financial and reputational — can be significant. Employers must ensure contributions are correctly calculated and submitted, and that leave requests are handled according to state requirements.

This new program reflects Minnesota’s commitment to a healthy, balanced workforce. By preparing now — understanding the process, deadlines, and compliance details — organizations can confidently support their teams while staying on the right side of state regulations.

HERE ​is an information sheet highlighting what small businesses need to focus on now, and some current FAQs. 

Presented by Grant Rockwood, Independent health insurance broker representing all major carriers (Health Partners, BlueCross, United Health, etc.) in MN.