Minnesota Paid Leave Starts in 2026: Key Steps for Employers

Minnesota’s statewide Paid Leave program begins in January 2026. The state has released required notices and employer resources to help organizations prepare for the payroll, communication, and compliance responsibilities that come with the new program. With just months ahead of the new year, now is the time to put the basics in place.

Program Basics

Minnesota’s Employer Resource Toolkit located on their paid leave website, outlines the program’s purpose and confirms that employees may take paid leave for “medical recovery, bonding, caregiving, or safety” needs. Benefits will be funded through payroll contributions that both employers and employees share. The state will administer payments, and employers will handle payroll withholding and compliance activities.

Updating payroll systems early will help avoid complications once contributions begin.

Required Notices

The state has issued two mandatory communication tools. The workplace poster and the “Paid Leave Matters” handout explain eligibility, how benefits are calculated, and employee protections. They also specify that workers have the right to “reinstatement” and that “retaliation” is prohibited. Employers must share these notices with all employees, including those who work remotely.

Aligning internal handbooks with this language will support consistent communication.

Administrative Readiness

The toolkit directs employers to confirm which employees are covered, plan how leave requests will be routed, and determine how state leave will coordinate with current leave policies. Although the state pays the benefit, employers continue managing staffing and scheduling.

Designating a point person and setting expectations for documentation and communication can streamline the process once the program is active.

Once this individual is identified you will need them to set up a Minnesota Paid Leave Administrator account. This account is separate, and is not used for reporting wages, but it will be used once employees request paid leave.  Access can be set-up at MN Paid Leave Only Account Log-in.

To learn more about the roles and requirements of employers due to the Minnesota Paid Leave program, visit Roles and responsibilities | Minnesota Paid Leave.

Why Early Planning Helps

Paid Leave will support employees during significant life events. The transition will be easier for employers who review the state materials now, prepare payroll systems, and update internal policies before questions arise.

Next Steps

• Assess your readiness.  Minnesota’s guidance gives a clear starting point. If you would like support thinking through workforce impact, policy updates, payroll readiness, or year end needs such as W-2 preparation, 1099 filings, or other accounting items, Brady Martz is available to talk through what this change may mean for your organization’s situation. To request assistance with year end filings, please reach out to us by December 23, 2025.
• Account enrollment.  If you pay MN state unemployment for some of your employees (and some aren’t covered), you will need two separate account logins.  Your first account is your Joint UI/Paid Leave account which is used to report your employees who are covered by UI and Paid leave.  You don’t need to register again for this account, but you will see a new section called PFML in this account.  The second account is your Paid-Leave ONLY account.  This account is used to report your employees who aren’t covered by UI but are covered by Paid Leave.  You will need to register for this account as it is new under this program.

Sources:

Minnesota Department of Employment and Economic Development, Paid Leave Mandatory Employer Poster (2025).
https://mn.gov/deed/assets/paid-leave-mandatory-employer-poster-acc_tcm1045-700342.pdf

Minnesota Department of Employment and Economic Development, Minnesota Paid Leave: What Employers Need to Know (2025).
https://mn.gov/deed/assets/mn-paid-leave-matter-acc_tcm1045-668394.pdf

Minnesota Paid Leave Program, Employer Resource Toolkit.
https://pl.mn.gov/tookits/employer-resource-toolkit#section-261-program-information

Disclaimer:

This article is for general informational purposes only and is not legal or compliance advice. Situations can differ, and state requirements may evolve as Minnesota releases additional guidance. For support specific to your organization, please contact the qualified professionals at Brady Martz.

Elements of this article were generated with the assistance of AI-enabled drafting tools. The final version has been carefully reviewed by Brady Martz professionals to ensure it reflects our standards of quality and accuracy.