 Paid Leave updates for employers
June 2025
Minnesota will be the 13th 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.
New legislation and rulemaking
The Minnesota Legislature held a special session this month to pass a new state budget. While there were many proposals related to Paid Leave discussed this year, the only change that passed into law was a new maximum premium rate. This change impacts the maximum premium possible under the law, but does not change the first year premium rate.
The premium rate for 2026 remains 0.88% of wages. Learn more about this rate and calculate costs using our online calculator:
Also this month, Paid Leave published our final adopted rules to implement the program under an expedited rulemaking process. These adopted rules come after significant public input gathered throughout 2024 and 2025. To learn more about this process and read the final rules, visit our website:
Paid Leave at Pride!
Paid Leave is for all families and all Minnesotans. This includes recognizing the care and love of LGBTQIA2S+ Minnesotans in chosen families.
On Sunday, June 29, Paid Leave joined Twin Cities Pride for the annual parade and festival in Minneapolis to celebrate and share information about the new program launching for Minnesotans on January 1, 2026.
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Connect with the Paid Leave team this summer at a community and cultural event near you, including but not limited to:
Upcoming webinars: learn more about Paid Leave
Paid Leave hosts a regular monthly webinar series to help Minnesotans understand how Paid Leave will work and how it may benefit you or your organization. Paid Leave also hosts webinars on specific topics, like one last month on employer accounts and responsibilities under Paid Leave. Can’t make it to a webinar? Recordings from past events are available on our website: Public engagement events / Minnesota Paid Leave
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. Consider joining our team!
Top questions we're hearing
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What accounts will I need as an employer for Paid Leave?
As an employer, you will need accounts with both Unemployment Insurance (UI) and Minnesota Paid Leave to meet your responsibilities under Paid Leave. These accounts will allow you to report wage details, pay premiums, review leave applications, and more. They will make it easier to support your employees during important times in their lives.
Here’s how these two accounts will work together.
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Report quarterly wage details
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Designate a Paid Leave Administrator
Paid Leave Administrator account:
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Review leave applications
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View Paid Leave determinations
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Request an Equivalent Plan Exemption
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When do I need to take action to be ready for Paid Leave?
Today, employers should make sure they are set up with their UI accounts so they can submit wage detail reports each quarter.
Soon, employers will be able to request an equivalent plan if they want one, apply for certain positions to be designated as exempt seasonal hospitality work, or opt into the program if they are self-employed.
By December 1, 2025, employers need to notify employees about the program with a workplace poster and individual notice.
In 2026, employers will begin to collect and pay premiums and review leave applications from their employees.
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.
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