Minnesota is getting ready for a bold move in its newest employee-focused state leave laws, the Minnesota Paid Leave Law. As of January 1, 2024, the Earned Sick and Safe Time (ESST) law is currently in effect. Coming in 2026, the Paid Family and Medical Leave (PFML) program will begin. This article will break down what these laws are about and practical approaches for navigating them.
ESST: MN’s Current Law
The ESST law allows employees who work a minimum of 80 hours per year to accrue 1 hour of paid sick and safe time for every 30 hours worked, up to 48 hours per year. Hours may carry over year to year with a maximum for 80 hours banked. This applies to full-time, part-time, seasonal, and temporary workers regardless of business size or number of employees. Employers are required to maintain applicable group insurance during ESST use and cannot retaliate.
Qualifying reasons for paid time off and job protections for employees may include things such as employees’ mental or physical illnesses, caring for a family member’s mental or physical health, safety against domestic abuse, school or workplace closings, communicable diseases, and bereavement.
This does have a more visible impact on some employees over others. For instance, employers who already have PTO plans that meet or exceed the ESST requirements are not impacted. Other employees may feel a stronger impact. Imagine a part-time retail employee who works 15 hours per week. Before ESST, this employee would not be eligible for job-protected, paid time off. Now, with this law, this individual would be eligible to accrue ESST. For example, if this employee’s child’s daycare closes due to a sudden flu outbreak, any accrued ESST hours can be utilized rather than the employee losing a day’s wages. Now, this employee is protected.
This law requires that payroll systems track accruals accurately and that paystubs show ESST balances, not to mention the impact on policies on attendance and anti-retaliation. Keep in mind that cities such as Bloomington, Minneapolis, and St. Paul maintain ESST ordinances as well.
PFML: MN’s Upcoming Law
Beginning January 1, 2026, nearly all Minnesotan employees will have access to a maximum of 12 weeks of family leave, 12 weeks of medical leave, or a combination of the two not exceeding 20 weeks, in a benefit year. This job-protected leave will be funded by a shared premium split between the employer and employee.
Qualifying reasons for paid time off and job protections for employees may include things such as employees’ mental or physical illnesses, caring for a family member’s mental or physical health, safety against domestic abuse, parental leave, and military-related reasons related to active duty. Certification of the need for leave is required by a designated professional.
Unlike FMLA leave, PFML provides job protections and partial wage replacements for employees who cannot work due to one of the qualifying reasons listed above for a minimum of 7 days (consecutive or non-consecutive). Employees are required to maintain applicable group insurance during PFML leave as well.
Consider a full-time Marketing professional who welcomes a newborn in March 2026. Utilizing the new PFML program, he can take up to 12 weeks of leave to bond with his new baby and it will be partially paid through the state program. In October 2026, this same employee needs surgery and can take an additional 8 weeks of leave, up to the 20-week maximum as outlined in the PFML law. Before PFML, this employee would have needed to rely on employer-provided PTO and/or unpaid FMLA leave. Now, he has job protected leave and financial support to help him through his needed leaves of absence.
This will impact employers’ approaches to payroll processes, policies, and employee notices. Payroll deductions will begin January 1, 2026, after providing required notices by December 1, 2025.
LeaveAssist: How we can help
Minnesota’s ESST and PFML programs require updated policies, payroll processes, accrual tracking, and clear, early communication with employees. Preparation is essential. Don’t wait until the last minute to be compliant.
Not only do we provide administrative support to track leave and submit the necessary forms, but we also provide employee-facing communication, dedicated leave liaisons for leave issues, leave policy compliance reviews, and more. Schedule a call with us today to see which service package is right for you!
LeaveAssist is here to partner with your business and employees through services that will ensure compliance and build trust!