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Minnesota Paid Leave: What Employers Need to Know
Key notes for Minnesota Employers.
Aaron Stegner
October 13, 2025
The Minnesota Paid Leave launches on January 1, 2026. This program provides job-protected, paid time off for qualifying medical and family reasons.
This is separate from Earned Sick and Safe Time (ESST).
Requirements
1. Notification:
Must notify employees in two ways by December 1, 2025.
Post the workplace poster in a conspicuous place.
Notify each employee by December 1, 2025 and new employees within 30 days. You can use this template from MN.
2. Setup Paid Leave Administrator Account:
You need to designate a paid leave administrator. This is where you will review paid leave applications and eligibility determinations. Here the link for more details.
3. Job Protection:
Jobs are protected and must be restored to the same level before they took leave. The protection starts after 90 days of employment.
Covered Employees
Coverage is very broad including S-Corp owners who receive a paycheck. Note the green box is covered, purple can opt in and orange cannot be covered or opt in.
Employees are covered if they:
Work at least 50% of their time in Minnesota.
Live in Minnesota and work in multiple states, with no single state accounting for more than 50% of their time.
Must have earned at least $3,700 in 2024 to qualify.
Leave Types & Duration
Medical Leave: Up to 12 weeks for an employee’s own serious health condition.
Family Leave: Up to 12 weeks for bonding with a new child, caring for a family member with a serious health condition, safety leave, or military family leave.
Combined Total: Up to 20 weeks per benefit year.
All leave types require certification from a healthcare provider or designated professional and must last more than 7 days.
Timeline
Employer/Employ Cost
Total premium is .88% of wages with the employee covering up to 50% of the cost. So the employer is on the hook for a minimum of .44%. There is a discount that will likely apply to most businesses reading this newsletter. See the next section.
Small Employers Discount and Grants
Employers with 30 or fewer employees and average wages under $107,016 may qualify for reduced premiums and grants:
Grants up to $3,000 per absence, capped at $6,000 per year.
Qualifying employers will receive a 50% discount. In this case The total paid will be .22% employer and .44% employee. This assumes the employer is covering the minimum required.
MN will send out letters to tell you if you qualify as a small employer.
Employee Payments
Up to 90% of wages, capped at the statewide average weekly wage (approximately $1,423 in 2025).
Must have earned at least $3,700 in 2024 to qualify.
Cannot collect Paid Leave while also receiving unemployment insurance, workers’ compensation, or Social Security Disability Insurance.
Online premium and benefit calculators are available.