Minnesota PFML: Minnesota PFML: What Employers Need to Do Now to Prepare for 1/1/2026

Minnesota’s Paid Family and Medical Leave law starts in 2026, but employers have critical responsibilities in 2025. Learn what steps to take now to stay compliant and avoid disruption.

Minnesota’s new Paid Family and Medical Leave (PFML) program goes live on January 1, 2026, offering employees up to 20 weeks of paid leave for qualifying life events.

While that may sound far off, employer responsibilities begin in 2025 and the decisions you make in the next 6–12 months will directly impact your operations, payroll processes, and people experience.

If you’re a business owner, HR leader, or operations manager, now is the time to get ahead of PFML and ensure your organization is prepared.

🔑 What Is Minnesota PFML?

The PFML program provides partial wage replacement for employees who need time off for:

• Bonding with a new child

• Recovering from a serious health condition

• Caring for a family member with a serious health condition

• Addressing military-related needs

• Seeking safety related to domestic violence, sexual assault, or stalking

The program is state-funded and applies to nearly every Minnesota employer—regardless of size.

📅 Key Employer Deadlines

Here’s what you need to track on your calendar:

⚠️ Delays in preparation could result in missed deadlines, penalties, or payroll errors.

🏛️ Public Program vs. Private Plan: Know Your Options

Minnesota allows employers to choose between participating in the public plan or applying for a private plan exemption.

Here’s a breakdown:

Option 1: Public State Plan

• Funded through a payroll tax (up to 0.7%), split between employer and employee.

• Administered by the Minnesota Department of Employment and Economic Development (DEED).

• Employers handle payroll deductions and quarterly reporting.

Option 2: Private Plan

• Must provide equal or better benefits than the state plan.

• Requires state approval before payroll deductions begin.

• Can be self-funded or administered through an insurance carrier.

👉 Choosing a private may offer more control and customization, but requires advance planning and formal application.

✅ How to Prepare Your Business for PFML

Whether you opt into the public plan or pursue a private alternative, here’s what to do now:

1. Review Your Existing Leave Policies Align sick leave, short-term disability, parental leave, and PTO policies with upcoming PFML requirements.

2. Plan for Payroll Adjustments Coordinate with your payroll provider or accountant to implement deductions and reporting by January 2026.

3. Educate Your Managers Ensure leadership understands how to handle leave requests and employee questions about the new benefit.

4. Communicate with Employees Prepare to deliver clear, timely information by December 1, 2025, so your team understands their rights and responsibilities.

5. Evaluate Private Plan Options Work with an HR or insurance advisor to determine whether applying for a private plan makes sense for your business.

🧭 How People Solutions Hub Can Help

At People Solutions Hub, we help Minnesota businesses get ahead of PFML with:

• PFML Readiness Assessments

• Leave policy review and integration

• Manager training on leave practices and compliance

• Private plan evaluation and application support

• Ongoing HR guidance through rollout and beyond

Whether you’re preparing for payroll deductions, updating your handbook, or exploring private insurance, we’re here to make the process smoother—and more strategic.

About People Solutions Hub

People Solutions Hub was founded by Nicki Leritz, an HR leader committed to giving small and mid-sized businesses clear, practical, and compliant people operations. After years of watching employers struggle with shifting laws, confusing deadlines, and inconsistent HR support, Nicki built PSH to bridge the gap between what teams need and what real-world businesses can actually manage. Today, our team helps Minnesota employers navigate everything from PFML compliance, employee handbooks, and HR audits to pay transparency, wage notices,

and leave management.

We believe HR shouldn’t feel overwhelming, it should feel supportive and built for long-term stability.

At People Solutions Hub, we partner with business owners, managers, and growing teams to simplify compliance, strengthen workplace culture, and build people systems that actually work.

📩 Reach out at psolutionshub@gmail.com

🌐 Visit www.peoplesolutionshub.co