Minnesota Paid Leave 2026: Employer Compliance Guide

Minnesota's mn paid leave program—officially the Minnesota Paid Family and Medical Leave (PFML) law—launched on January 1, 2026, creating new payroll contribution obligations and leave entitlements for virtually every employer in the state. If you have employees in Minnesota, you are already required to withhold contributions, remit them to the state, and allow eligible employees to take paid leave. The program is state-administered, not employer-paid out of pocket, but the compliance requirements fall squarely on your business.

What Is Minnesota's Paid Leave Program?

Minnesota Paid Leave is a state-run insurance program, similar to those in California, New York, and Washington. Employers and employees contribute a percentage of wages into a state fund. When an eligible employee takes qualifying leave—to recover from a serious illness, bond with a new child, or care for a family member—the state pays a wage replacement benefit directly to the employee. This means you don't fund the benefit yourself, but you do bear the administrative burden of managing contributions and leave tracking.

According to the Minnesota Paid Leave program website, eligible employees can receive up to 90% of their average weekly wage, capped at 67% of the state average weekly wage, when they take approved leave. The program covers employees who have earned at least $2,500 in wages in the base period and worked for a covered employer.

What Are the Contribution Rates for 2026?

The total Minnesota Paid Leave contribution rate for 2026 is 0.88% of covered wages. This is split between employer and employee:

Employer Size	Employer Share	Employee Share	Total Rate
30+ employees	At least one-third (≈0.29%)	Up to two-thirds (≈0.59%)	0.88%
Under 30 employees	$0 (optional)	Up to 0.88%	0.88% (employee-borne)

Larger employers can choose to pay more than their required share—many cover the employee portion entirely as a benefit to reduce employee-side paycheck impact. Smaller employers (under 30 employees) are exempt from the employer contribution requirement but must still withhold and remit the employee's share. Contributions are calculated on wages up to the Social Security taxable wage base.

What Leave Can Employees Take Under Minnesota Paid Leave?

• Medical leave: Up to 12 weeks per benefit year for the employee's own serious health condition
• Family care leave: Up to 12 weeks per benefit year to care for a family member with a serious health condition, or to bond with a new child (birth, adoption, or foster placement)
• Pregnancy/childbirth supplement: An additional period for pregnancy or recovery from childbirth, allowing a total of up to 20 weeks in a benefit year in specific circumstances
• Safety leave: Leave related to domestic violence, sexual assault, or stalking
• Intermittent leave: Leave can be taken in full weeks, partial weeks, or individual days when the reason qualifies

The program dovetails with federal FMLA. According to the Department of Labor's FMLA page, federal FMLA provides 12 weeks of unpaid, job-protected leave to eligible employees. Minnesota's Paid Leave runs concurrently with FMLA where both apply—meaning the leave counts against both entitlements simultaneously, not sequentially.

Job Protection and Employer Obligations

Employers with 30 or more employees must provide job protection for employees returning from Minnesota Paid Leave. Returning employees must be restored to the same position or an equivalent position with the same pay, benefits, and working conditions. Employers cannot retaliate against employees who request or take paid leave.

Smaller employers are not required to guarantee job restoration, but all employers—regardless of size—must:

• Allow eligible employees to take approved paid leave
• Withhold and remit employee-share contributions each payroll period
• Maintain records of contributions and leave taken
• Not interfere with, restrain, or deny an employee's exercise of leave rights

How to Administer Minnesota Paid Leave Correctly

1. Verify your contribution rate in your payroll system: Your payroll processor should have the 0.88% rate configured and be remitting contributions each pay period. Confirm this is set up correctly if you haven't already.
2. Track leave separately from PTO: Minnesota Paid Leave runs on its own clock. Keep records of when employees enter and return from leave, separate from your internal PTO balance. You need a clear audit trail if the state queries your leave administration.
3. Communicate with employees before leave begins: Review the leave process, expected duration, return-to-work date, and any continuation of benefits during leave. Document these conversations.
4. Coordinate with FMLA if applicable: If your business has 50+ employees, concurrent FMLA designation means you need to provide FMLA notices and track against both entitlements.
5. Plan for coverage: A 12–20 week leave absence requires a coverage plan. Identify whether you will use temporary staff, redistribute hours, or cross-train existing employees before a leave event happens, not after.

Using Time Tracking to Stay Compliant

Accurate time and leave records are your compliance foundation for Minnesota Paid Leave. When an employee takes intermittent leave—a few hours here, a half-day there—you need a system that records those partial-day absences separately from regular hours. Without a clear record, calculating total leave used against the 12-week entitlement becomes a guessing game that creates legal exposure.

A free time clock like Kloqk lets you record scheduled hours, actual clock-in/out times, and separate leave categories so that intermittent leave is tracked alongside regular attendance. The result is a clean audit trail: you can see the exact days and hours an employee was on leave, when they returned, and how much of their annual entitlement remains. For overtime and leave compliance questions specific to Minnesota, review the state's requirements and consult with your payroll provider to confirm your contribution remittance is configured correctly.

Frequently Asked Questions

When did Minnesota's Paid Leave program start?

Minnesota's Paid Family and Medical Leave program launched on January 1, 2026. This is a state-administered insurance program funded by employer and employee payroll contributions. Benefits began being paid to qualifying employees starting January 1, 2026. Employers in Minnesota were required to begin withholding and remitting contributions on that date.

What is the Minnesota Paid Leave contribution rate for 2026?

The total contribution rate for Minnesota's Paid Leave program in 2026 is 0.88% of covered wages. Employers with 30 or more employees must contribute at least one-third of the total rate, with employees paying no more than two-thirds. Employers with fewer than 30 employees are not required to pay the employer share, but must still withhold and remit the employee share. Employers may also choose to cover the employee's portion as a benefit.

How much leave can an employee take under Minnesota's Paid Leave?

Eligible employees can take up to 12 weeks of paid leave per benefit year for their own serious health condition or to bond with a new child. They can take up to 12 weeks for qualifying family care needs. In rare circumstances involving a serious health condition and pregnancy or childbirth, an employee may take up to 20 weeks total in a benefit year. The combined maximum is 20 weeks.

Do I need to hold an employee's job during Minnesota Paid Leave?

Yes. Employers with 30 or more employees must restore employees returning from approved paid leave to the same or equivalent position with the same pay, benefits, and working conditions. Smaller employers are not required to provide job protection, but all employers—regardless of size—must allow eligible employees to take the leave and must continue to remit contributions.

How does Kloqk help track employee leave under Minnesota Paid Leave?

Kloqk's time tracking and attendance tools let you record leave dates separately from regular work hours, so you have a clear record of when an employee began leave and when they returned. Accurate leave records are essential for calculating the leave duration, verifying compliance with job protection requirements, and responding to any state audit of your paid leave administration. You can also use Kloqk to track partial-day leave for employees on intermittent leave schedules.