The Minnesota Paid Leave law, enacted in May 2023 and updated in May 2024, provides paid family and medical leave coverage to Minnesota workers, effective January 1, 2026. The law provides job protections and payments from the state to individuals who need time off to care for themselves or their loved ones. Minnesota Paid Leave will be funded by premiums made up of contributions from employees and employers.
Minnesota Paid Leave will help individuals take time off when they need to care for themselves or their loved ones. The Minnesota Legislature passed the Paid Leave law in 2023 and charged the Minnesota Department of Employment and Economic Development (DEED) with managing the Paid Leave program.
Please note that this program applies to all employers, with very few exceptions. Visit the Minnesota Paid Leave website for more information. The site includes several videos and a Q&A section.
To determine eligibility and benefit payments for Minnesotans when Paid Leave launches in January 2026, Minnesota employers need to report wage details for their employees starting October 31, 2024. Paid Leave will use the same online reporting system as Unemployment Insurance (UI) to make things easier for employers.
No additional steps are needed from Minnesota employers if all their employees are covered by UI, as the same account and quarterly wage detail reports will serve for paid leave. If an employer has some or all of their employees not covered by UI, they may need to create an account to submit wage details by October 31, 2024. No penalties will be issued if you do not comply with this filing in 2024; however, it is strongly recommended that the employer create a “Paid Leave Only” account and file those prior quarterly reports.
This program will involve remitting premiums to the State of Minnesota through the UI portal.
Agricultural employers will still need to file quarterly reports on their employees. Since most agricultural employers are exempt from Federal and State unemployment, agricultural employers will need to create a “Paid Leave only” account with the state. Quarterly reports (without premiums) were supposed to be filed starting the third quarter of 2024.
Employers should consult with their tax professional to prepare for this program when it begins in January 2026. The University will host free webinars addressing the Minnesota Paid Leave program. The University will announce the programs later this summer.
More information from the Minnesota Paid Leave site
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