Paid Leave Updates – November 2024

Implementation Update

Minnesota will be the 13^th state to launch a statewide Paid Leave program. We’re committed to collaborating with stakeholders to build an intuitive and accessible Paid Leave program that works for businesses, individuals, healthcare providers, and all Minnesotans.

Final proposed rules for Minnesota Paid Leave

Earlier this year, Minnesota Paid Leave asked a broad cross-section of workers, industries, service providers and advocates for feedback on draft rules to build out the Paid Leave program.

During that initial public comment period, we held 19 virtual listening sessions to gather public input and feedback. A total of 950 people attended these listening sessions, and nearly 600 written comments were submitted to inform the final proposed rules.

Informed by that feedback and input, Paid Leave published our final proposed rules in the State Register this week. Public comments are now open on the final proposed rules and will be collected through the Office of Administrative Hearings through January 3, 2025, at 4:30 p.m. CST.

These rules cover topics including provider certification; seasonal employment; opting in; intermittent leave; the role of the employer; covered employment; leave modifications; overpayments; job protections; benefit payment schedules; private plans; claims administration; small employer assistance grants; and safety leave.

To read the final proposed rules and learn how to share your feedback, visit our website.

What’s up next for employers?

Minnesota Paid Leave is committed to helping employers understand their role and responsibilities under the program, so that their employees can take the time they need to care in the moments that matter. To make things easier for employers, Paid Leave has partnered with Unemployment Insurance (UI) to use its online portal for collecting wage detail reports starting this year and premium payments in April 2026.

The first important step for employers is to review your UI employer account, if you have one, and create a Paid Leave Only account if you need one. Many Minnesota employers already took this step in October, when the first wage detail reports were submitted to Paid Leave. To review your account or steps you might need to take, visit the UI website:

Before the end of the year, Minnesota Paid Leave plans to provide initial information for employers who may wish to provide Paid Leave benefits through an equivalent private plan. These and other program updates will be posted to our website and shared through this newsletter once they are available.

Hiring Spotlight

The Minnesota Paid Leave team is growing fast. We are a start-up in state government and are actively hiring for leaders to deliver on the promises of the legislation.

• Senior Finance and Budget Analyst (Apply by December 4, 2024)
• Manager of Administrative Services (Apply by December 9, 2024)

Consider joining our team! You can always find our latest open roles on our website.

Top Questions We're Hearing

• Is there a minimum amount someone needs to earn for their wages to be reported to Paid Leave?
  
  Employers should report all wages paid to employees covered by Paid Leave through wage details each quarter. Even small earnings contribute to Paid Leave eligibility.

• How is Minnesota Paid Leave funded?
  
  Initial funding for Minnesota Paid Leave was appropriated by the Minnesota Legislature, and once the program comes online in 2026 it will be funded by premiums made up of contributions from employers and workers in Minnesota.

• If a corporation is treated as an S corporation (“S-Corp”) for tax purposes, are its wage-taking shareholders required to report wages and pay premiums for Paid Leave?
  
  An S-Corp’s wage-taking shareholders are considered employees of the S-Corp. The S-Corp should set up a Paid Leave Only account on the UI website and report its shareholders’ reasonable wages from their W-2s.

For More Information

You can find more information for employers, individuals, and families on our webpage here.

For more information on UI and Paid Leave employer accounts, visit the Unemployment Insurance website.

Still Have Questions?

If you have a Paid Leave question that isn’t yet answered on our website, please submit your question here.

If you need help with your Paid Leave Only or Joint UI/Paid Leave account, contact the Unemployment Insurance employer helpline.