--- url: 'https://www.fmjlaw.com/minnesotas-paid-family-medical-leave-pfml-program-starts-january-1-2026-is-your-organization-ready/' title: 'Minnesota’s Paid Family & Medical Leave (PFML) Program Starts January 1, 2026 – Is Your Organization Ready?' author: name: Adam url: 'https://www.fmjlaw.com/author/adam-brownfmjlaw-com/' date: '2025-10-20T16:29:48+00:00' modified: '2025-10-20T16:51:39+00:00' type: post summary: 'Most Minnesota employers will need to have a PFML policy in place. FMJ can help!' categories: - Article - Legal Alert - Newsroom - Thought Leadership published: true --- # Minnesota’s Paid Family & Medical Leave (PFML) Program Starts January 1, 2026 – Is Your Organization Ready? Minnesota’s statewide PFML program goes into effect January 1, 2026. By the end of 2025, every covered employer must have a compliant PFML policy in place. Is your organization ready? Here is a summary of the program and a discussion of what you need to start working on now. ## Does Minnesota PFML Apply to my Organization? Minnesota’s PFML statute is written broadly, and it applies to *any employer with at least one employee in Minnesota*. There are very limited exceptions, and there is no small employer exception. So, if your organization has at least one employee working in Minnesota, the PFML law most likely applies to you. The definition of an “employee” is also very broad, and it includes part-time employees making more than about $5,000 annually. Independent contractors who provide services to a company are excluded from coverage under the company’s policy, so long as they meet the applicable legal standard for independent contractor status ([click here](https://www.fmjlaw.com/the-u-s-department-of-labor-releases-final-rule-on-classifying-workers-as-employees-or-independent-contractors/) to learn more about employee vs. independent contractor classification). Sole proprietorships and self-employed individuals have the option to implement a policy for their own coverage but are not required to do so. ## How Does Minnesota PFML Work? At its baseline, PFML is essentially an insurance program that provides benefits similar to what an employee would receive under a short-term disability program. Employees will apply for leave benefits; submit any required supporting documentation (which will depend on the type of leave requested); and, if their application is approved, they will receive a percentage of their regular base compensation during their time off.  Under the PFML program, eligible employees can take up to 12 weeks of paid medical leave in a year for their own serious health condition, and they can also take up to 12 weeks of paid family leave in a year to bond with a new child, care for a family member with a serious health condition, or to support family members in certain circumstances involving military deployment, domestic violence, or sexual assault.  Importantly, however, if an employee is eligible for both paid medical leave and paid family leave in the same year, they will be limited to a combined maximum of 20 weeks of PFML in a single year. Pay continuation benefits under the PFML program are calculated using a formula set by the state. ## Employer Options Under Minnesota PFML Employers must choose one of the following compliance paths: - Use the State’s PFML Program - Create a Self-Insured, Self-Funded, and Self-Administered Plan - Purchase a Compliant Insurance Plan The following table shows the comparison between these three employer options: [![](https://www.fmjlaw.com/wp-content/uploads/2025/10/PFML-Chart.png)](https://www.fmjlaw.com/wp-content/uploads/2025/10/PFML-Chart.png) ## Timing and Notice Requirements Selecting and implementing a PFML plan takes time and careful consideration. This is a complicated analysis, and some of the options require approval from the state. So, if your organization has not started working on this, now is the time! Plan documents and approvals should be in place before the end of 2025 to avoid compliance issues on January 1, 2026. There are also notice requirements for employers *starting on December 1, 2025*, including a state-prepared workplace poster and a separate written notice of PFML benefits and rights. ## How Does PFML Interact with Other Benefits? The PFML program overlaps with a number of other policies, benefits, regulations, and procedures. For example, many employers are also covered by the federal Family and Medical Leave Act (FMLA). Employer policies and procedures should be reviewed and, if necessary, updated to ensure that leave benefits which can run concurrently are set up to do so. Employers may also have existing short-term disability or other similar programs to review and update as needed. Employers should consider how PFML will interact with PTO, earned sick and safe time, and any other policies dealing with time off. If not set up and aligned correctly, benefits may end up stacking or duplicating instead of running concurrently. In order to be prepared for PFML by end of this year, employers should review and audit their employee handbooks and other policies for necessary updates now. ## Takeaways The PFML requirements are complicated. There are multiple steps that employers need to take, including choosing a compliance option, implementing a plan, reviewing and revising policies and handbooks, providing employee notice, and so on. FMJ can help. Our [HR & Employment Team](https://www.fmjlaw.com/practice-area/hr-employment/) is already working with a number of clients to help evaluate which PFML option is most cost-effective, to draft or update policies and notices, and to audit and review policies, handbooks, etc., making sure that PFML aligns with other leave and benefits programs/policies. Please reach out to [Natolie Hochhausen](https://www.fmjlaw.com/professional/natolie-s-hochhausen/) or anyone else on our [HR & Employment Team](https://www.fmjlaw.com/practice-area/hr-employment/) to discuss compliance strategies today. 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