New Minnesota Family Leave Law to Offer Unique Benefits in 2026

A significant shift in Minnesota’s family leave policy will take effect on January 1, 2026, expanding benefits to nearly all employees in the state. This new legislation mandates that employers provide paid family leave, allowing new parents to potentially “double dip” due to an unusual timing aspect of the program.

At present, only 24% of Minnesota’s workforce has access to paid family and medical leave. The forthcoming law will change that landscape dramatically by introducing 12 weeks of paid medical leave and an additional 12 weeks of family leave. This family leave can be utilized for various reasons, including caring for an ill family member, bonding with a newborn, or addressing personal safety issues such as domestic violence.

While employees can use both medical and family leave within a single year, the total paid leave is capped at 20 weeks. Compensation during this leave will not cover full pay; for instance, a person earning $72,000 annually can expect to receive approximately 80% of their salary during their time off, according to the Department of Employment and Economic Development (DEED).

One notable feature of this new law, as highlighted by the Minnesota Chamber of Commerce, is that parents of babies born in 2025 may effectively access both company and state leave. This “double-dipping” opportunity arises from the overlapping timing of the new law’s implementation. For example, if a parent takes leave under their employer’s policy for a child born in 2025, they can apply for an additional leave through the state program in 2026, as long as it is taken before the child turns one year old.

The funding for this program will come from a payroll tax set at 0.88%, shared between employers and employees. The administration of the program will mirror that of the state unemployment office, with oversight by DEED.

In preparation for this major change, the Minnesota Chamber of Commerce is actively conducting seminars and collaborating with numerous employers across the state to ensure compliance. “There are certainly varying degrees of readiness. Part of our charge right now is to increase education and awareness,” stated Lauryn Schothorst of the Minnesota Chamber of Commerce.

The state anticipates an influx of applications, projecting over 132,000 requests for leave in 2026. Employers who fail to adhere to the new regulations may face fines of up to $10,000 per violation, while employees could be entitled to double damages in terms of the pay they would have received during their leave.

As Minnesota approaches this transformative period in family leave policy, the focus remains on ensuring that both employers and employees understand their rights and responsibilities under the new law.