2023 session outcomes: Paid Family and Medical Leave (PFML)

This year, the Legislature passed the most sweeping paid leave mandates on business in state history. Despite more than 80% of Minnesota members offering leave to their employees, the state now mandates all employers to grant employees sick, safe and paid time off equaling nearly 40% of a work year.

Paid Family and Medical Leave (PMFL): The new, historic paid leave mandate forces employers to offer 12 weeks paid medical leave and 12 weeks of paid family leave (maxing out at 20 weeks total in a 52-week period). The program will be administered by a new state agency with over 400 full-time employees. It will be paid for through surplus funds and a considerable increase in payroll taxes, which can be split between employers and employees. The state will work with employees to determine length and justification for leave and agency officials will oversee compliance and penalties. This will take effect January 1, 2026.

Note: The Minnesota Chamber and its partners worked tirelessly to scale back this legislation. Although the final legislation will impact businesses greatly - some to the point of devastation - the legislation as originally proposed went much further. The Chamber was successful in scaling back the number of weeks; originally proposed at 24, an exemption for seasonal hospitality workers, a refined definition of family member and an actuarial study. The effective date of this bill was also pushed to 2026.
 

 Minnesota paid leave program will require higher taxes than originally thought, actuary says

Minnesota employers and workers will have to pay about 18% more than originally thought for a new state-run paid family and medical leave program slated to start in 2026, according to a state-commissioned actuarial analysis.

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WATCH: 2023 Statewide Policy Tour discussion on paid family and medical leave (PMFL):

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Employers Questions and Answers regarding the Paid Family Medical Leave (PFML) program

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