Minnesota is poised for a significant transformation in its family leave policies, set to take effect on January 1, 2026. A new law mandates that nearly all employers provide paid family leave, introducing a unique opportunity for some new parents to “double dip” on benefits due to a timing quirk. Currently, only 24% of Minnesota’s workforce has access to paid family and medical leave. This law aims to expand coverage to full-time, part-time, and seasonal employees across the state.
Under the new regulations, employees will be entitled to 12 weeks of paid medical leave and 12 weeks of family leave. This family leave can be utilized for various purposes, including caring for an ill family member, bonding with a new baby, or addressing personal safety issues such as stalking or domestic violence. While employees can access both leave types within a single year, the maximum total leave available is capped at 20 weeks per year. Notably, employees will receive approximately 80% of their salary during the state-paid leave, based on a calculation for someone earning $72,000 annually.
A noteworthy feature of the program, as highlighted by the Minnesota Chamber of Commerce, is the potential for parents of babies born in 2025 to effectively “double-dip.” This situation arises from the timing of the law’s implementation, allowing parents to access both their employer’s leave policy and state benefits. Specifically, if a parent took leave under their employer’s insurance policy for a child born in 2025, they could subsequently apply for additional leave through the state, as long as it is taken before that child turns one year old.
The new paid family leave program will be funded by a 0.88% payroll tax, which will be shared between employers and employees. Administration of the program will be handled similarly to the state unemployment office, with oversight from the Department of Employment and Economic Development (DEED). Despite inquiries, DEED has not provided any representatives for comment regarding the new law’s rollout.
In preparation for the transition, the Minnesota Chamber of Commerce is actively conducting seminars and engaging with hundreds of employers statewide to ensure compliance. Lauryn Schothorst from the Chamber noted, “There are certainly varying degrees of readiness. Part of our charge right now is to increase education and awareness.”
According to state projections, over 132,000 applications for leave are expected to be submitted in 2026. Employers who fail to comply with the new law may face fines of $10,000 per violation, and affected employees could seek double damages for unpaid leave.
As Minnesota moves forward with these changes, the new paid family leave law represents a significant advancement in employee benefits, aiming to provide support and security for families across the state.
