New Minnesota Family Leave Law Set to Transform Parental Benefits

Minnesota is set to implement a significant change to its family leave policies on January 1, 2026. A new state law will require employers to offer paid family leave to nearly all employees, including full-time, part-time, and seasonal workers. This legislation marks a major shift in the state’s benefits landscape, potentially impacting thousands of families.

Under the new law, employees will be entitled to 12 weeks of paid medical leave and an additional 12 weeks of family leave. The family leave can be used to care for a sick family member, bond with a new baby, or address personal safety issues such as domestic violence. While parents can utilize both types of leave within a single year, the overall maximum leave remains capped at 20 weeks annually. Payments during this leave will not cover full salaries; for instance, a worker earning $72,000 annually would receive approximately 80% of their pay through the state program.

A unique aspect of this law is the timing quirk that may allow some parents to effectively “double dip.” Specifically, parents of children born in 2025 could access benefits from both their employer and the state. If these parents take leave under their employer’s policy before the end of 2025, they can subsequently apply for state leave in 2026, provided it occurs before their child turns one year old. This provision has raised questions and interest among expectant parents.

The funding for the program will come from a 0.88% payroll tax, which will be shared between employers and employees. The state’s Department of Employment and Economic Development (DEED) will administer the program, similar to how unemployment benefits are managed. DEED officials have not made themselves available for interviews regarding the upcoming changes, leaving some employers seeking clarification.

To ensure businesses are prepared for the transition, the Minnesota Chamber of Commerce is actively conducting seminars and collaborating with employers across the state. Lauryn Schothorst from the Chamber noted that there is a range of preparedness among businesses. “Part of our charge right now is to increase education and awareness,” she stated.

The state anticipates a significant uptake in applications for leave, with projections suggesting over 132,000 applications are expected in the first year of the law’s implementation. Employers should be aware that non-compliance with the new regulations may result in penalties of up to $10,000 per violation, in addition to potential double damages owed to employees who were denied the benefits.

As Minnesota prepares for this transformative change, the impact on families and the workplace landscape will be closely monitored. The new paid family leave law represents a substantial step forward in supporting working parents and their well-being.