Minnesota Paid Family and Medical Leave Act — Employer Advisory Series – Article III of III
This is my third and final instalment of the Minnesota Paid Family and Medical Leave Act — Employer Advisory Series – before the law goes into effect on January 1, 2026. Please see the previous two articles regarding employer preparation for Minnesota’s Paid Family and Medical Leave (Paid Leave) requirements: Critical Dates for Employers Under Minnesota’s Paid Family and Medical Leave: Overview of Minnesota’s Paid Family and Medical Leave Act: Understanding Employer Obligations and Things to Do & When to Do Them.
In this article, I’ll discuss the five handbook updates to minimize liability and confusion when Paid Leave goes into effect:
1. Add a Distinct Paid Leave Policy Section
Create a comprehensive, standalone section explaining employee eligibility (working at least 50% of the time in Minnesota and earning at least $ 3,700 annually). Lay out the different types of leave, generally, including the time offered under both personal medical leave and family leave, as well as the cap on both leave types combined (up to 12 weeks for medical, 12 weeks for family, and a maximum of 20 weeks combined). Inform employees of their notice obligations to the company and direct them to the state’s website and phone number for information on applying for state-paid leave.
2. Align PTO and Sick Leave Policies
Clarify how Paid Leave coordinates with current time-off policies. Employees receive partial wage replacement (55-90%) without being required to use accrued leave, but may supplement Paid Leave with other paid time off, vacation, or qualifying short-term disability.
3. Clarify Protected Leave Coordination
Document how Paid Leave runs concurrently with FMLA and Pregnancy and Parental Leave when applicable. Employers are advised to ensure that their other protected leave programs (e.g., FMLA, Pregnancy and Parental Leave) run concurrently with the new Paid Leave time. Harmonizing a company’s leave policies now will prevent confusion when employees start taking leave in 2026.
Employers preparing for staff taking time away under Paid Leave should be aware that, based on the bonding leave 12-month lookback period, any parent who had a baby, adoption, or some other bonding time with a child in 2025 may be eligible for additional leave under Minnesota’s Paid Family and Medical Leave in 2026.
4. Update Job Protection Language
Revise your job restoration provisions to reflect that employees have job protection if they have been with an employer for at least 90 days. Accordingly, employers must provide job restoration to their original or an equivalent position upon return, continue to fund their healthcare insurance premiums during leave (though employees remain responsible for their portion), and strictly avoid any retaliation or interference with their Paid Leave rights. Employers should draft their policies to cover employees who may qualify for additional protected leave benefits and additional job protections while using Paid Leave.
5. Revise Benefit Continuation Terms
Update your health insurance continuation language to clearly state that health insurance will continue under the same terms during Paid Leave. If applicable, clearly state that employees remain responsible for their portion of premiums while on Paid Leave and include the company’s payment policies for insurance premiums.
Next Steps
Completing these revisions now ensures your handbook provides clear guidance and will limit potential employer liability when Paid Leave launches on January 1, 2026.
If you have any questions related to compliance with Minnesota’s Paid Leave, please contact Mary Ellen Reihsen at mreihsen@hjlawfirm.com or 952-460-9275.
