Minnesota has enacted legislation that amends a law that creates a paid family and medical leave program in the state beginning Jan. 1, 2026. The changes are a result of enactment of House File 5247.
The Details
Contributions
As enacted, the law set the premium rate for the program at 0.7 percent of an employee’s wages for 2026. However, House File 5247 allows the state to adjust this rate before Jan. 1, 2026.
Employers must pay at least 50 percent of the applicable premium rate. Employees, through a deduction, must pay the remaining 50 percent of the premium not paid by the employer.
Under the amended law, a reduced premium amount will be available to small employers if they have fewer than 30 employees and the employer’s average wage is less than or equal to 150 percent of the state's average wage.
See the text of the law for details on determining employee count and average wages.
The reduced premium rate for eligible small employers will be 75 percent of the standard premium rate. Eligible small employers must pay a minimum of 25 percent of the standard premium rate. Employees must pay the remaining portion.
Seven-Day Qualifying Event
As is the case under existing law, the period for which an applicant is seeking benefits must be or have been based on a single event of at least seven calendar days' duration related to medical care related to pregnancy, family care, a qualifying exigency, safety leave, or the applicant's serious health condition. This provision doesn’t apply to bonding leave. The amended law makes clear that the seven-day qualifying event is a retroactively payable period, not an unpaid waiting period.
Intermittent Leave
The amended law makes clear that intermittent leave must be taken in increments consistent with the established policy of the employer to account for use of other forms of leave, so long as such employer's policy permits a minimum increment of at most one calendar day of intermittent leave. An applicant isn’t permitted to apply for payment for benefits associated with intermittent leave until the applicant has eight hours of accumulated leave time, unless more than 30 calendar days have lapsed since the initial taking of the leave.
Private Plans
House File 5247 establishes rules for employers that move from private plans to plans administered by the state. See the text of the law for details.
Next Steps
- The state is in the process of drafting the rules to implement the program and is gathering public input and feedback. See the Department of Employment and Economic Development’s website for more information on how to participate.
- Review leave policies and update if necessary.
- Watch for the sample notice that must be provided to employees.
- Once published, provide the sample notice to new hires and existing employees.
- Prepare to begin making contributions on January 1, 2026.
- Train supervisors how to handle leave requests.
- Begin providing leave for the covered reasons by January 1, 2026.
Have Questions?
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