As you are aware, the Minnesota Paid Family and Medical Leave Law (PFML) will be administered beginning in January of 2026. PFML provides job-protected paid leave benefits for employees experiencing loss of work time to care for themselves or their family member with a qualifying health condition, a new child or certain military-related events.

The legislature initially allocated $668 million in seed money from the general fund along with premiums collected through a payroll tax to be shared  between employees and employers to fund the program. The payroll tax was subsequently increased from the initial tax of 0.7% to 0.88% after an actuarial analysis conducted by Milliman, a healthcare consulting firm.

The Minnesota Department of Employment and Economic Development (DEED) has been fine tuning administrative rules while employers have been readying payroll functions to meet the program requirements.  At the same time, two bills have been introduced this legislative session to delay implementation or alternatively to fully repeal the paid leave program.

In response to business concerns regarding readiness to comply, HF 11 was introduced this session to delay the implementation of the paid leave law for one year. Opposition to the delay is split along party lines and sources have indicated a vote on the provision to delay will be suspended. Meanwhile,  HF 1241, a bill to fully repeal the entire paid leave program and return the seed money to the general fund has been introduced. That bill has not yet been scheduled for hearing.

It remains to be seen what will  result from efforts to repeal paid leave but given the complexity of implementation employers should continue to prepare for the 2026 effective date.  We will keep our eyes on the legislature for any future developments with the law.  If you or your organization need advice regarding the Minnesota paid leave programs, contact Wiley Reber Law for legal advice that works.