Minnesota’s Paid Leave Law Takes Effect January 1, 2026: 5 Steps for Employers to Prepare

Quick Hits

• Qualified employees in Minnesota are entitled to paid leave under the state Paid Leave law starting January 1, 2026.
• Employers have several plan and internal policy decisions to make prior to January 1, such as the type of plan(s) that will be used, how premiums will be split (if at all), how company benefits will be coordinated with the Paid Leave law, and how intermittent leave will be allowed.
• Employers must post a notice and provide employees with written information by December 1, 2025 (if deductions are being made starting January 1).

Five Action Items to Take Before January 1, 2026

• Set up a Paid Leave joint UI account. Employers with one or more qualified employees in Minnesota will need to set up their Paid Leave joint account via the Unemployment Insurance (UI) account website.

• Decide whether to use the state and/or an equivalent plan. Employers may use the state plan for medical leave, family leave, neither, or both. If an employer chooses to use an equivalent (private or self-funded) plan for one or both types of leave, the state has encouraged employers to apply by November 10, 2025, for approval by January 1, 2026. Employers must also decide how they will split the premiums (if at all) with employees.

• Determine internal policy provisions and update the employee handbook/policies. For example, how will your unique company benefits coordinate with the Paid Leave law? Will you allow employees to “top off” Paid Leave benefits with other paid time off benefits? Will you allow more than the 480 hours of intermittent medical leave to include family leave? What increment will you allow employees to use Paid Leave (up to one day)? Employers with document retention policies may want to consider amending them as the Paid Leave law requires Paid Leave records to be maintained for six years. The records for “individuals performing services” for an employer “must be kept for a period of not less than four years in addition to the current calendar year.”

• Post the workplace poster(s). The state has published its required workplace notice poster for employers using a state plan and/or equivalent plan. Employers that will use a state plan for one type of leave and a private plan for another type of leave will need to post both posters. The notice must be posted in a “conspicuous place on each of [an employer’s] premises” and must be in English and any other language spoken as the primary language by five or more employees, if the poster is available from the state.

• Notify employees “directly” by December 1, 2025, and provide written information concerning Paid Leave. Employers must notify each employee about Paid Leave by December 1, 2025, if they want to start making payroll deductions starting January 1, 2026 (thirty days before premium collection begins). The state has published a sample employee notice for employers using a state plan and/or equivalent plan. Employers using both the state and a private plan will need to provide employees with the notice for each plan. The employee notice must be provided to employees in their primary language, in writing. The state has indicated it will be updating its website with additional languages (currently only English is provided). The Paid Leave law requires employers to obtain each employee’s acknowledgement of receipt of the notice. If an employee refuses to sign, the employer will need to show how the employee was notified.

In addition, employers that employ or intend to employ seasonal employees (as defined by the law) must issue each seasonal employee a notice stating they are not eligible to receive Paid Leave benefits while they are employed. This must be provided when an offer is made, or within thirty days of November 1, 2025, for existing seasonal employees. The Minnesota Department of Employment and Economic Development (DEED) is to provide a form for this (not available currently). Delivery of the notice is complete when an employee acknowledges receipt or signs a statement indicating a refusal to sign an acknowledgement. In addition, employers that desire to classify an employee as “seasonal” must apply to DEED (in a manner and format prescribed by the commissioner of DEED) and certify they meet certain requirements.

While Paid Leave is about ninety days away, employers have several decisions to make, policies to update, and notices and information to provide in the near future. Employers may want to subscribe to DEED’s updates at https://mn.gov/deed/paidleave/employers/information. For additional information, contact webinars@ogletreedeakins.com to request a copy of our webinar, “Minnesota Paid Leave Law Primer: Preparing for January 1, 2026.”

Ogletree Deakins’ Minneapolis office and Wage and Hour Practice Group will continue to monitor developments and will provide updates on the Minnesota and Wage and Hour blogs as new information becomes available.

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