Minnesota has new paid leave requirements starting January 1st, 2026. This policy is called the Paid Family & Medical Leave, or PFML for short.
As a small business owner, you want to know how to stay in compliance. In this article, I’ll tell you what you need to do before this change takes place, plus how to use PFML moving forward.
At CSI Accounting & Payroll, we’ve worked with small businesses for nearly 60 years. We keep our clients informed on relevant law changes, including PFML. So let’s discuss:
This is an upcoming change to paid leave requirements. Paid Family & Medical Leave (PFML) will supplement wages that would otherwise be lost from taking paid time off. Minnesota state says, “By supporting employees when they need this leave, employers benefit from improved retention, morale, and productivity when employees return to work.
All employers with at least one employee working in Minnesota must set up PFML accounts that allow state-granted paid leave. Tribal nations and federal government employees are exempt.
PFML plans include 12 weeks of paid medical leave (often used for handling a serious health condition) and 12 weeks of paid family leave (often used for bonding with a new child). There's a combined 20-week cap if both types are used in a single benefit year, which starts on the first day that leave is taken. For example, if an employee uses the full 12 weeks of medical leave, family leave will be capped at 8 weeks to not exceed the 20-week total.
When 2026 rolls around, you need to be ready! In the next section, I’ll cover what needs to be handled ahead of time.
By the December 1, 2025 deadline, you must choose between a state plan or an eligible private plan and inform your employees of their PFML plan’s rights and benefits. Learn more about mandatory employee notifications and get the required posters here.
PFML is funded by premiums, which are collected by the state from employers. You may decide to contribute more than what’s required. If you cover more than the minimum 50 percent of premium costs or supplement the wages paid out by PFML, inform your staff.
Then, before January 1, 2026, state plan users must set up their PFML Employer Account and Administrator Account (Decide who will manage this – who your employees will notify of their intended paid leave). Most payroll providers will instruct you to register your own accounts and grant them 3rd party access. Here’s how to do that. However, if you work with CSI, we’ll create your accounts on your behalf.
In the next section, I’ll cover what using PFML looks like from both an employer and an employee standpoint.
Your PFML accounts will use the same online reporting system as Unemployment Insurance (UI). To determine eligibility and payments, report wage detail for your employees in this portal. Other than that, there’s not much that you’ll need to do with the portal on a regular basis.
When an eligible employee wants to request PFML, they’ll notify your plan administrator. Then, the employee will apply on the Minnesota DEED portal (which goes live on January 1st, 2026). Medical documentation may be required. Finally, if approved, the employee can receive partial wages and job protection until they return.
Have more questions about PFML? Use this resource or give us a call! We’re happy to talk about how we can assist you with law changes moving forward.
Now that you know more about Minnesota’s Paid Family & Medical Leave, what you need to do before 2026 (and how CSI will help!), and how PFML works moving forward, are you ready to check out CSI’s payroll services?
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