Paid Family Medical Leave
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
.
Cost Predictability
Vendor Customizations
Potential Cost Savings
Low Risk Exposure
Claims Experience
Compliance Simplicity
DCI Assistance
Purchase Private Insurance
x
x
x
x
x
x
x
State Plan (MN PFML)
x
.
.
x
.
x
.
Self-Insure Private Plan
.
.
x
.
.
x
.
Cost Predictability – Premiums are fixed for 12 months during which time claims are not the responsibility of the employer.
Vendor Customizations – Shop from multiple vendors and bundle PFML with current disability lines for ease of coordination of benefits.
Potential Cost Savings – Utilizing private insurance, you may receive a lower rate than the state plan. Many of our clients have received rates well below the MN State PFML Rate. Self-insuring does not carry a monthly expense, but has an unpredictable lump sum cost at time of a claim.
Low Risk Exposure – Employers are not financially responsible for claim pay outs and have a fixed premium each quarter.
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.