Paid Family Medical Leave
What you need to know
Minnesota’s Paid Family and Medical Leave (PFML) program, launching on January 1, 2026, introduces significant responsibilities for employers statewide. Under this mandate, all Minnesota employers, regardless of size or industry, must provide eligible employees with paid leave for qualifying events with very few exceptions. Employees can take up to 12 weeks of leave for personal medical conditions and/or 12 weeks for care of family, with a combined maximum of 20 weeks per calendar year.
The program is funded through a payroll tax, which can be split between employer and employee contributions. Employers must maintain current benefits for employees on leave and ensure job protection, allowing employees to return to their same or equivalent positions post-leave.
Employers have three options to provide Minnesota’s Paid Family and Medical Leave (PFML) mandatory coverage: purchase private insurance, use the state-run PFML program, or self-insure with a private plan.
One of the most essential things to know is that preparing for PFML is much more than just getting rates. Whether you go to private insurance or through the state of MN, the complexity of items that need to be implemented prior to January 2026 can be overwhelming. DCI specializes in the entire PFML integration process and are experts in the design, implementation and administration of PFML and we will be there every step of the way.
Weigh Your Options
| Feature | Purchase Private Insurance | State Plan (MN PFML) | Self-Insure Private Plan |
|---|---|---|---|
| Cost Predictability | x | x | |
| Vendor Customizations | x | ||
| Potential Cost Savings | x | x | |
| Low Risk Exposure | x | x | |
| Claims Experience | x | ||
| Compliance Simplicity | x | x | x |
| DCI Assistance | x |
Claims Experience – Private insurance has a proven track record to quickly process claims and has a vested interest in employees returning to work.
Compliance Simplicity – Plans are approved by the state and compliant with no additional work from the employer. Tax forms are created and sent out automatically.
DCI Assistance – We will provide you with a PFML Essentials Kit, hands on implementation, on-going support for administration across all your benefits, HR questions, compliance fulfillment needs, claims submission, claims processing, and claims follow up.
Updates
| July 31, 2026 | Premium adjustments will be made starting on July 31, 2026 and every July 31 each year thereafter for the following calendar year |
| April 30, 2026 | First quarterly premiums are due; based on wages paid between January 1, 2026 and March 31, 2026. |
| January 1, 2026 | Premium contributions and benefits begin, and payroll deductions can start. |
| December 1, 2025 | Deadline for employers to notify employees about Paid Leave Benefits. Please note that you must provide notice to all employees, including seasonal employees. Ensure posters are displayed in areas where employees can easily see them. |
| May 2025 | MN Paid leave published new guidance on how Paid Leave will be treated by state and federal taxes. Minnesota follows federal law to determine when income is included or excluded as employee gross income. (IRS Revenue Ruling 2025-4, released on January 15, 2025) |
| April 1, 2025 | Equivalent Plan review available on DEED website |
| March 1, 2025 | Kick off of community engagement sessions about PFML |
| February 15, 2025 | Paid Leave confirmed the premium rate will be 0.88 percent |
| January 3, 2025 | Public comment period on final proposed closed. These comments are public and available for review |
| December, 2024 | DEED published initial guidance for employer responsibilities under Minnesota Paid Leave offered by the state |
| November 25, 2024 | Final Proposed rules published in the State Register |
| October 31, 2024 | Employers submit their first quarterly wage reports |
| July 10, 2024 | Public comment period closed on July 10, 2024 |
| January 22, 2024 | Initial public comment period on the proposed rule topics for Paid Leave |
| May 25, 2023 | PFML bill signed |
Do you feel overwhelmed with the uncertainty of PFML with no guidance?
Our clients already have their PFML rate options and Essentials Kit.