Please click the play arrow above to watch this 30-minute on-demand webinar recording.
We are grateful to Genevieve Frazier with Maguire Agency and Evon Spangler with Spangler & de Stefano, PLLP for co-hosting this timely update for Minnesota Paid Family Medical Leave and related employment laws.
Genevieve Frazier with Maguire Agency and Evon Spangler with Spangler & de Stefano, PLLP
Agenda
Paid Family Medical Leave - what you need to know and do now
Employment Law Update - PFML vs. ESST
Employment Handbook - what you need to know and do now
Below is a recap of what is covered in the on-demand recording.
Minnesota Paid Family Medical Leave Overview
The Minnesota Paid Family Medical Leave (PFML) program is set to provide paid leave benefits to employees starting January 1, 2026. Payroll deductions for employers and employees begin on January 1, 2026. Premiums are due by April 30, 2026, based on wages from the first quarter of 2026. All employers with employees in Minnesota are required to participate. Employees become eligible after 90 days of employment, with exceptions for independent contractors, federal employees, self-employed individuals, and certain seasonal workers.
Employee Eligibility and Coverage Details
Eligibility for the PFML program is determined by the employee's work location and duration of employment. An employee's work is considered covered if 50% or more is performed in Minnesota. Employees must have worked at least 80 hours in a year to qualify. Independent contractors and certain seasonal employees are excluded from eligibility.
Funding Structure for Paid Family Medical Leave
The PFML program will be funded through a payroll tax system, with specific rates for different employer sizes. The initial payroll tax rate is set at 0.88%, with a maximum annual premium rate of 1.1%. Small employers (30 or fewer employees) will have a reduced rate of 0.44%. Contributions can be split equally between employers and employees, with a maximum weekly contribution of $14.90 each ($29.80 per week in total).
Benefits and Leave Duration Under PFML
Employees are entitled to a maximum of 20 weeks of paid leave per year, with benefits based on income levels. Employees earning 50% or less of the statewide average weekly wage (SAWW) receive 90% of their wages. Those earning between 50% and 100% of the SAWW receive 66%, while those earning above 100% receive 55%. Leave can be taken for personal health conditions, family care, or safety leave, with a maximum of 12 weeks for each category.
Filing Claims and Benefit Eligibility
The process for filing claims and determining eligibility for benefits is clearly outlined. Claims must be based on a qualifying event lasting at least seven consecutive days. Benefits take effect on the Sunday of the week when the application is submitted. Employees can request retroactive payment for benefits if they were incapacitated or unable to apply on time.
Anti-Retaliation Protections Under PFML
The PFML law includes protections against employer retaliation for employees exercising their rights. Employers cannot discharge, discipline, or discriminate against employees for requesting leave or benefits. Employers must not obstruct the application process for leave or benefits.
Comparison of Paid Family Medical Leave (PFML) and Earned Sick and Safe Time (ESST)
The PFML program differs from the Earned Sick and Safe Time (ESST) in several key areas. PFML provides job protections and partial wage replacement for qualifying conditions lasting at least seven days, while ESST allows for paid time off for various reasons. PFML starts on January 1, 2026, while ESST is already in effect as of January 1, 2024. PFML offers up to 20 weeks of leave, compared to ESST's maximum of 48 hours per year.
Employee Handbook Updates Required
Employers need to revise their employee handbooks to comply with new PFML regulations. Review and update time-off policies to align with PFML requirements. Ensure that the handbook includes mandatory provisions related to PFML and ESST. Employers cannot require employees to exhaust other leave types before taking PFML.
Please let us know if you would like a copy of this PDF presentation sent to you. Use the form to submit your request and we will send it to you in 1-2 business days. Thank you for your interest in Minnesota Paid Family Medical Leave and Employment Law.