Minnesota Paid Family & Medical Leave (PFML): What Employers Need to Know
- Kriss Burns
- Jan 8
- 4 min read
– BY KRISS BURNS | 2026
As of January 2026, Minnesota’s Paid Family & Medical Leave (PFML) program is officially live.
That means employees can now apply for paid leave through the state and employers have real, ongoing responsibilities tied to payroll, reporting, and leave coordination.
If you’re a Minnesota employer make sure you’re prepared, as this isn’t a “set it and forget it” program.
Let’s walk through what actually matters.
What Is Minnesota PFML?
PFML gives employees paid time off for major life events, including:
Their own serious medical condition
Caring for a family member
Bonding with a new child
Certain military or safety-related situations
The state pays the benefit directly to the employee, but employers are still deeply involved behind the scenes.
What Employers Are Responsible For (Right Now)
Payroll Contributions
PFML is funded through payroll premiums.
For 2026:
The total premium rate is 0.88% of wages
Employers must pay at least 50%
The remaining portion can be withheld from employee pay
Employers can choose to cover more, or all, of the cost
Premiums are capped at the Social Security wage limit, and smaller employers may qualify for reduced rates.
If payroll deductions or employer contributions aren’t set up correctly, this is where issues start.
Wage Reporting
PFML uses the same quarterly wage reporting system as Unemployment Insurance (UI).
That’s helpful, but it also means:
Errors in payroll data now affect PFML
Wage details directly impact employee eligibility and benefit amounts
Clean, consistent reporting matters more than ever
This is one of the biggest areas we’re seeing questions come up.
Leave Tracking Is Still the Employer’s Job
Even though the state administers the benefit, employers must still:
Track employee leave usage
Coordinate PFML with PTO, sick time, and FMLA (Family Medical Leave Act)
Respond to state requests for wage or employment verification
Assign a Paid Leave Administrator internally
If someone on your team takes PFML, there is still admin work happening on your side.
Employee Notices & Documentation
Employers are required to:
Provide PFML notices to employees
Post required workplace posters
Keep records showing employees were informed
This is one of those areas that’s easy to overlook — until there’s a compliance issue.
Recordkeeping Isn’t Optional
PFML comes with record retention requirements. Employers are expected to keep documents related to:
Contributions paid and withheld
Employee leave usage
PFML communications and notices
This ties directly into payroll records and bookkeeping systems, so organization matters.
How PFML Fits With Other Leave Policies
PFML does not replace other leave programs.
It may run alongside:
Family Medical Leave Act (FMLA)
Minnesota Parental Leave
Earned Sick & Safe Time (ESST)
Employer-provided PTO
If policies don’t line up cleanly, confusion happens fast — for both employers and employees.
The Bottom Line
PFML is now part of doing business in Minnesota. For many employers, the biggest challenges aren’t the concept of paid leave, they’re:
Payroll setup
Ongoing reporting
Leave coordination
Documentation and recordkeeping
All of these operational details can lead to confusion and errors if systems aren’t solid.
If you’re unsure whether your payroll and bookkeeping processes are supporting PFML correctly, it’s worth taking a closer look now, before small issues turn into bigger ones!
To learn more, we encourage you to explore these helpful resources from PRO Resources:
Please refer to the official MN DEED website for more information and the most up to date regulations as changes to MN PFML are ongoing.
Meet The Author
Kriss Burns is an HR Business Consultant for PRO Resources in Fargo. She has worked in the Human Resources, Staffing and Employment industry in both the private sector and public sector for over 25 years. She earned her BS and MBA, with an emphasis in Human Resources, from the University of Mary. Kriss is also an Adjunct Faculty Instructor for the University of Mary where she teaches Human Resources and Business Management courses, serving both graduate and undergrad students. Kriss is very active in the community and is currently serving as the President of the Fargo-Moorhead Human Resources Association, is Member Relations Ambassador with The Chamber, serves on the M-State Human Resources Advisory Council, and last but not least, Kriss is a Charter Member and Past President of the FM PM Rotary Club, and currently serves as the Public Relations Chair. In her spare time, Kriss loves volunteering, traveling, boating, spending time with family & friends, tailgating and Bison Football!
About PRO Resources:
PRO Resources is a locally owned Professional Employer Organization (PEO) that has been supporting small to mid-sized businesses and nonprofits for nearly 35 years. Based in the Upper Midwest and serving organizations across North Dakota, Minnesota, and multiple other states, PRO Resources partners with employers to simplify human resources, reduce compliance risk, and strengthen the employee experience.
Unlike standalone payroll platforms or HR software, PRO Resources provides a hands-on, full-service partnership. Clients gain access to a dedicated team of HR professionals who support payroll processing and tax administration, employee benefits and benefits administration, workers’ compensation and risk management, HR compliance and employment law guidance, policy and handbook development, multi-state employment support, safety training and OSHA compliance, and modern HR technology.
PRO Resources works closely with growing businesses and mission-driven nonprofits that need reliable HR support without adding internal headcount. By managing the administrative and compliance complexities of employment, PRO allows leaders to focus on their people, operations, and long-term goals with confidence.
The information in this blog is for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.