As the January 1, 2026 approaches, we are taking a closer look at the Minnesota Paid Leave decision points employers must consider, some of which may require additional policy planning and evaluation of labor implications.
Premiums: Employers should determine whether they will share premium costs with employees, and if so, keep in mind those premiums can be collected starting January 1. 2026. Paid Leave Act section 268B.14.
- The 2026 premium rate is 0.88% of an employee’s taxable wages based on the wage detail report submitted by the employer.
- Employers must pay at least 50% (0.44% of wage detail report) of the annual premiums but may pay more. Employers may deduct the remainder of the premium contribution from employees’ pay.
- There is no adjustment to the premium based on employee utilization.
- Employers in a unionized environment should be prepared for collective bargaining of shared premium terms prior to the January 1, 2026 go-live date.
- The employee’s portion of the premium cannot reduce an employee’s pay below minimum wage.
Supplemental Benefit payments: Employers may allow employees to use other paid leave to supplemental benefit payments as a “top-off” to replace their full wage during a qualifying leave. MN Statutes 268B.01 and 268B.06.
- While employers can make the top-off available, they cannot require employees to use other accrued paid leave.
- A supplemental “top-off” cannot exceed the employee’s regular wage. If the amount of paid benefits and supplemental benefits exceed the employee’s regular wage, the employee will be required to refund the excess amount to the employer or the paid leave division.
- If the employer provides replacement wages that qualify as paid leave, DEED may reimburse the employer.
Employee notification of need for leave: Employers should have clear policy and process for employees to follow when notifying the employer of the need for paid leave. MN Statute section 268B.085
- Employers can allow for notification orally, via telephone, text or pursuant to the employer’s regular call-in policy. Employers may establish a call-in number or a designated contact person for employee notification pursuant to policy.
- Where foreseeable, the employee must provide at least 30 days’ advance notice of the leave. The employee must provide an explanation if they are able to provide 30 days’ notice but do not do so.
- The employee’s notice should include the anticipated timing and duration of the leave.
Intermittent Leave: Employers should determine policy for leave to be taken intermittently. MN Stat. §268B.085
- The employer may define the minimum increment of time that can be taken intermittently, from one minute up to one day.
- Employees can take up to 480 hours (12 weeks) intermittently. If an employee qualifies for more than 480 hours of leave in a year, the employer can decide whether the amount beyond the initial 480 hours can be taken intermittently or must be taken in a continuous block.
Minnesota Paid leave does not prohibit employers from bargaining on conditions of paid leave as long as the final terms meet or exceed the baseline of benefits outlined in the statute. Employers should have solid policies and procedures set for implementation and a strategy to address any labor implications that may arise. If you or your organization have questions on Minnesota Paid Leave, contact Wiley Reber Law for legal advice that works.