What is Paid Family and Medical Leave (PFML)?

Minnesota’s PFML program is a statewide insurance benefit funded through payroll deductions and employer contributions.  Eligible workers can receive up to 12 weeks of paid leave per year for medical or family-related reasons—and up to 20 total weeks if they qualify for both types.

Covered leave reasons include:

  • A serious health condition
  • Bonding with a newborn, adopted, or foster child
  • Caring for a family member with a serious health condition
  • Safety leave related to domestic abuse, sexual assault, or stalking
  • Certain military-related events

How does the 20-week PFML cap work?

Minnesota’s PFML program allows up to:

  • 12 weeks of medical leave, and
  • 12 weeks of family leave,
  • with a combined maximum of 20 weeks per benefit year.

When does PMFL take effect?

  • June 16, 2025 – Final PFML rules issued by Minnesota DEED
  • Dec 1, 2025 Employers must begin providing employee notices
  • Jan 1, 2026 – Premium deductions begin & PFML benefits become available
  • Apr 30, 2026 First premium remittance due to the state

How is PFML funded?

PFML is funded through a .88% payroll tax. By default, this is split evenly between the employer and the employee (0.44% each), though employers can choose to cover the full amount.

Employers with fewer than 30 employees may qualify for reduced rates. The Minnesota Department of Employment and Economic Development (DEED) will collect premiums through a new employer portal, expected to launch in late 2025.

How does PFML compare to FMLA?

Feature Minnesota PFML Federal FMLA
Type of Leave Paid Unpaid
Length of Leave Up to 12 weeks per type (medical or family); max 20 weeks/year Up to 12 weeks/year total
Employer Coverage All employers Only employers with 50+ employees
Employee Eligibility Based on wages and time worked in MN 12 months of employment and 1,250 hours
Job Protection Yes (if employed at least 90 days) Yes
Administered by MN Department of Employment and Economic Development (DEED) U.S. Department of Labor

“When employees qualify for both PFML and FMLA, the two types of leave usually run together—not consecutively—offering paid time off and job protection at the same time.”

Bottom line:

Generally, employees who are eligible for both PFML and FMLA will typically use them at the same time, not one after the other. This means leave under both programs usually runs concurrently, offering wage replacement (PFML) and job protection (FMLA) during the same period, not extending the total time away. There may be rare exceptions, such as when an employee qualifies for PFML but not yet for FMLA.

What do employers need to do now?

  1. Prepare payroll systems. Coordinate with your payroll provider to begin deductions on January 1, 2026.
  2. Budget accordingly. Plan for the 0.44% employer share—or the full 0.88% if you’re covering the employee portion.
  3. Update leave policies. Consider how PFML will coordinate with your existing PTO, disability, and parental leave offerings.
  4. Communicate with employees. Required notices must be provided by December 1, 2025, but proactive communication will help avoid confusion.
  5. Stay tuned. Watch for further updates and employer portal guidance from DEED.

Can I opt out with a private plan?

Yes—employers may apply to use a private plan instead of the state program. However, the private plan must provide equal or better benefits and be approved by the state. Applications for private plan exemptions are expected to open in fall 2025.

Now’s the time to get ready

PFML is a significant shift in how Minnesota supports working families, and for employers, the time to prepare is now. While benefits won’t start until 2026, compliance starts months earlier with notices, deductions, and reporting responsibilities.

If you have a paid leave question, or would like to estimate your premiums, visit the MN.gov/deed/paidleave page for more information.