State Passes Family and Medical Leave Law

On May 25, 2023, Gov. Walz signed a bill that created a statewide Paid Family and Medical Leave program. Under the program, Minnesota employees will be eligible for paid family and medical leave once they have earned more than $3500 within the state over the course of a year. These employees will be entitled to partial wage replacement for 12-20 weeks of leave in a 52-week period for medical leave, bonding or caring for a family member.

A fund maintained by the state will pay the partial wage replacement. Employers and employees will contribute to the fund in premiums of 0.7% of an employee’s taxable wages. Employers may charge their employees a maximum of half this premium (or 0.35%) through a wage deduction. The program will start collecting these premiums on January 1, 2026, through an employer account system.

In order for an employee to receive this benefit, they must:

• Provide at least 30 days’ notice if the event is foreseeable.
• Experience a qualifying event of at least seven calendar days. Qualifying events include caring for a family member with a serious health condition, bonding with a new baby or child, or dealing with a serious health condition that prevents the employee from working.
• Apply to the Paid Family and Medical Leave program for the leave. The application must include a certification of the reason for the leave provided by a medical professional.

In addition to submitting the premiums to the program, employer obligations include:

• Starting in mid-2024, most Minnesota employers will be required to submit a wage detail report, which will detail the quarterly wages received and hours worked for each employee.
• Starting in late 2025, employers must notify their employees about the program. The Paid Family and Medical Leave program will provide language for this notification.
• Starting in January 2026, employers will also be required to submit any premium payments due.

Since this is a new program, there are not many details about how the state will administer it. We will report new information concerning the program in future editions of Compliance Corner. Employers with employees in the state should be aware of this new program.

HF 2 (Family and Medical Leave Act)»
Paid Family and Medical Leave Program Website »