Minnesota Family & Medical Leave Insurance (MN PFML)

Minnesota employers generally must provide Paid Leave coverage through the state-administered program or an approved equivalent plan. Madison National Life Insurance Company, Inc. (MNL) offers a fully insured Minnesota Paid Leave equivalent plan through Wise Benefits. Employers that select the MNL equivalent plan must submit an Equivalent Plan Substitution request to Minnesota Paid Leave and receive approval before replacing state-administered coverage.

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Program Snapshot1

Minnesota Paid Leave provides eligible employees with partial income replacement and employment protections when they need qualifying Medical or Family Leave. Coverage generally applies when an employee cannot work because of their own serious health condition or needs time away for an eligible family, bonding, military-related, or safety reason. Qualifying reasons may include:

  • the employee’s own serious health condition, including pregnancy-related medical needs;
  • caring for a family member with a serious health condition;
  • welcoming and bonding with a new child;
  • certain needs arising from a family member’s military service; or
  • addressing qualifying safety concerns.
Group of people icon representing employee coverage

Coverage

Nearly all Minnesota employers must provide Paid Leave coverage, regardless of size. Employment is generally covered when at least 50% of an employee’s work during the calendar year is performed in Minnesota. Special rules apply to employees who work in multiple states.

Benefits

Minnesota Paid Leave replaces a portion of an eligible employee’s wages using a progressive benefit formula. For 2026, the state program’s maximum weekly benefit is $1,423. The amount an employee receives depends on the employee’s earnings and the benefit calculation in effect when leave begins.
Group of people icon representing employee coverage

Eligibility

Employees must satisfy Minnesota’s financial eligibility requirement and all other applicable program requirements. For leave beginning in 2026, an employee generally must have at least $3,900 in covered wages during the applicable base period.

12 or 20 weeks

Under the 2026 state program, an eligible employee may receive up to 12 weeks of Medical Leave or up to 12 weeks of Family Leave during a benefit year. When an employee uses both types of leave in the same benefit year, the combined limit is 20 weeks.

Premium

The premium rate for Minnesota’s state-administered program is 0.88% of covered wages in both 2026 and 2027. Under the state program, an employer may collect up to 0.44% from employees or pay a larger share itself. Premium rates for a fully insured equivalent plan may differ from the state rate. However, employees covered by an equivalent plan cannot be required to contribute more than the amount permitted under the state program.
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Protection

Job-restoration protections generally begin after an employee has worked for the employer for 90 days. When those protections apply, the employee generally must be returned to the same position or one with equivalent pay, benefits, and working conditions. Protections against retaliation and interference apply regardless of the employee’s length of service.
1. Source: Minnesota Paid Leave, pl.mn.gov. Program information is based on 2026 requirements unless otherwise noted and is subject to change.

Equivalent Private Plans

Many employers are considering equivalent private plans that offer advantages beyond meeting Minnesota’s requirements, including the ability to work with a trusted provider to meet state requirements. Employers have the opportunity to elect an Equivalent Private Insurance Plan in place of the state-administered program.

With an MNL equivalent plan, employers gain a more personalized experience and greater administrative support. For schools and public employers, that creates an opportunity to deliver the same required benefits through a trusted insurance partner that understands their workforce, administrative realities, and employee needs.

MNL provides the insured Minnesota PFML coverage. Claims under the policy are administered by MNL or its designated policy administrator. Employers remain responsible for administering PTO, FMLA, and their other leave programs unless separate administrative services have been arranged.

An MNL equivalent plan includes or supports the following processes and features:

  • Processes for continuous and intermittent leave, benefit determinations, and appeals.
  • Employees can initiate claims online or by telephone.
  • Employers receive notice after an employee files a claim.
  • Claims under the policy are administered by MNL or its designated policy administrator.
  • Coordination with employer-provided PTO and disability benefits, subject to the issued policy and applicable plan terms.

Premium rates and certain policy and administrative provisions may vary by employer in accordance with MNL’s filed policy and rating methodology, underwriting requirements, and Minnesota law. Available effective dates are subject to Minnesota’s equivalent-plan application and approval requirements.

Implementing an MNL Equivalent Plan2

Employers may submit an Equivalent Plan Substitution request at any time. Before applying, the employer must establish the required UI and Paid Leave accounts and designate a Paid Leave Administrator. Equivalent plans take effect at the beginning of a calendar quarter and must remain in effect for at least one year. The employer’s request must be submitted and approved by Minnesota Paid Leave before the requested effective date. Employers are also responsible for applicable state application and oversight fees.

Submission Deadline  Effective Date if Approved
 November 15  January 1
 February 15  April 1
 May 15  July 1
 August 15  October 1

 

2. Source: pl.mn.gov/employers/equivalent-plans-paid-leave

Minnesota PFML FAQs

  • What responsibilities do Minnesota employers have?

    Employer responsibilities vary depending on whether the employer participates in the state-administered program or uses an approved equivalent plan. Minnesota employers generally must:

    • maintain the applicable UI and Paid Leave employer accounts
    • continue submitting accurate quarterly wage-detail reports, including when using an equivalent plan
    • display the required workplace poster and provide required notices to employees
    • respond promptly to information requests related to an employee’s leave or claim
    • coordinate Paid Leave with PTO, disability benefits, FMLA, and other applicable leave programs
    • maintain required health and other group insurance coverage during leave
    • restore eligible employees to the same or an equivalent position following leave
    • avoid retaliation, interference, prohibited waiver requests, and deductions not permitted by law

    Employers participating in the state-administered program remit the applicable state premiums. Employers using an approved fully insured equivalent plan pay the applicable insurance premium for employees covered by that plan instead of the state-plan premium and remain responsible for applicable state approval and oversight fees.

    Source: pl.mn.gov/employers/roles-and-responsibilities and pl.mn.gov/employers/equivalent-plans-paid-leave

  • How does Minnesota Paid Leave coordinate with other leave and benefits?

    Minnesota Paid Leave may coordinate with employer-provided pay, disability insurance, and other leave programs as follows:

    • PTO and salary continuation: Subject to the applicable employer and policy terms, the employer and employee may agree to use PTO or salary continuation to supplement Paid Leave benefits. Combined payments may not exceed the employee’s average weekly wage. An employer may not require an employee to use PTO instead of Paid Leave benefits.
    • Disability insurance: Disability insurance benefits may be paid during the same period as Paid Leave benefits when the employee independently qualifies for both. Any reduction or offset is determined by the terms of the applicable disability insurance policy.
    • Other protected leave: Paid Leave may run concurrently with leave under the federal Family and Medical Leave Act or Minnesota Pregnancy and Parental Leave when the employee independently qualifies under each applicable program.

    For additional information, see Minnesota Paid Leave’s guidance on coordinating Paid Leave with other benefits. Source: pl.mn.gov/employers/roles-and-responsibilities/coordinating-paid-leave-other-benefits

  • Which program approaches should employers compare?
    1. State-administered plan: Minnesota Paid Leave administers benefits and claims. Employers remit state premiums and continue fulfilling their employer responsibilities.
    2. State plan coordinated with employer benefits: The state program remains the employee’s Paid Leave coverage. Employers may coordinate permissible PTO, salary continuation, or disability benefits with the state benefit.
    3. Fully insured equivalent plan: The employer purchases an insurance policy intended to provide benefits and protections that meet or exceed Minnesota’s requirements. The employer must obtain state approval of its equivalent-plan substitution, and claims are administered under the issued policy by the insurer or its designated administrator.
    4. Self-insured equivalent plan: The employer funds the benefits and administers the plan directly or through a contracted administrator. The employer must obtain state approval and satisfy applicable financial-security and oversight requirements.
  • What should employers consider when evaluating a fully insured equivalent plan?
    • Who underwrites the coverage, administers claims, and supports employees and employers with claim-related questions?
    • What responsibilities remain with the employer when applying for and maintaining equivalent-plan approval?
    • How does the issued policy address coordination with employer-provided PTO and disability benefit?
    • How will the employer administer FMLA and other leave entitlements that may run concurrently? 
    • What claim-intake, employer-notification, eligibiliy-determination, payment, and appeal processes apply?
    • How are continuous and intermittent leave and schedule changes communicated?
  • What must an equivalent plan provide?

    To receive state approval, an equivalent plan must provide benefits ad protections that meet or exceed Minnesota’s requirements, including:

    • Coverage for all qualifying Medical and Family Leave reasons;
    • Eligibility standards, benefit aounts, and leave durations that are at least as favorable as the state program;
    • Required employment protections and an appeal process; and
    • Employee contribution requirements that do not exceed the amount permitted under the state program.

    Source: pl.mn.gov/employers/equivalent-plans-paid-leave
Insurance underwritten by Madison National Life Insurance Company, Inc. This material is for informational purposes only and is not legal or tax advice. Product availability, premium rates, policy terms, and administrative services are subject to applicable law, underwriting, and the issued policy. Employers are responsible for obtaining and maintaining approval of their equivalent-plan substitution with Minnesota Paid Leave.