Starting on January 1, 2026, Minnesota Paid Leave will go into effect for both premium deductions and benefits starting under the program. Before then, there are several actions employers covered by Minnesota Paid Leave should consider taking to ensure they are compliant with the new requirements.
Set up a Paid Leave Administrator Account
All employers covered by Minnesota Paid Leave are required to establish a Paid Leave Administrator account which will allow the employer to review paid leave applications and determinations. The first step in the process is designating your Paid Leave Administrator in your Minnesota Unemployment Insurance (UI) account. The Minnesota UI account will also be used to submit quarterly wage reports and pay Paid Leave premiums. If you do not already have a Minnesota UI account, you will need to create one. Refer to this website for more directions on designating your Paid Leave Administrator in your Minnesota UI account.
Once you have designated the Paid Leave Administrator in your Minnesota UI account, that individual will receive an email with steps to follow for setting up a Paid Leave Administrator Account.
Apply for Private Plan Exception
If you plan on complying with the requirements of Minnesota Paid Leave by using a private equivalent paid leave plan provided by an insurance carrier or on a self-insured basis you must apply to the state of Minnesota for an exception from participation in the state plan.
Applications for an exception are completed through your Paid Leave Administrator account. Applicants should be prepared to provide information regarding the plan and to pay the required application fee of $250, $500, or $1,000 depending on employer size.
Private plans can go into effect at the beginning of any quarter but if you want your private plan to be effective by the start of Minnesota Paid Leave on January 1, 2026, your application must be submitted by November 10, 2025.
Provide Required Employee Notices
Employers are required to provide employees with several notices regarding Minnesota Paid Leave. Employers must post a poster describing Minnesota Paid Leave to their employees. A model poster is available here. Employers using an equivalent private plan are required to post an equivalent plan poster as well that can be obtained here.
Employers must also individually notify employees about Minnesota Paid Leave by December 1, 2025. A sample notice is available here. Employers using an equivalent private plan must also provide employees with an equivalent plan notice available here. Going forward, the notice must be provided to new hires within 30 days. Employers must have employees acknowledge receiving the Minnesota Paid Leave notice. This can be done through employee signature, electronic acknowledgement, or another way determined by the employer.
Adjust or Implement Policies Regarding Paid Leave
- Employers should review their existing leave policies to determine if they need to be updated or if new policies are necessary to address Minnesota Paid Leave. Things to consider include:
- Procedures for providing notice of the need for leave.
- How will Minnesota Paid Leave interact with other employer provided benefits and other leaves, such as leave covered by the Federal Family and Medical Leave Act (FMLA); and
- Duration of incremental leave under Minnesota Paid Leave.
Key Takeaways
Minnesota Paid Leave’s January 1, 2026, effective date is fast approaching, and employer compliance obligations start before then. Employers subject to Minnesota Paid Leave should review the requirements of the law and take any required actions based on whether they are participating in the State of Minnesota’s plan or an equivalent private plan.
The information provided is a summary of laws and regulations relating to employee benefit plan compliance. This information should not be construed as legal advice. In all cases, employers should consult with their own legal counsel.