As a reminder, Minnesota’s Paid Family and Medical Leave (PFML) program will take effect on January 1, 2026. All Minnesota employers are required to participate in the state-administered program unless they receive an exemption by offering a comparable private plan. This article is part of our ongoing series designed to help Minnesota businesses understand and prepare for these changes. If you missed it, start with the first article in the series: Understanding Minnesota’s New Paid Leave Law.
This update focuses on the process for applying for an exemption.
Exemption Eligibility
If your organization already provides paid family and medical leave benefits that meet or exceed the requirements of the state program, you may qualify to apply for an exemption. Employers should consult with their insurance or benefits provider to confirm coverage and identify any necessary updates.
The Minnesota Department of Commerce has reviewed and certified a list of equivalent plans, available here: Approved Equivalent Plans (PDF)
Key Information
- Approval – Exemptions must be approved by the Minnesota Department of Employment and Economic Development (DEED).
- Benefit Standards – Your private plan must provide equal or greater benefits than the state PFML program.
- Application Process – Exemption applications will be available through DEED’s online portal.
- Reporting Requirement – Approved exemptions relieve employers from paying into the state PFML fund; however, wage reporting will still be required.
- Application Fee – Fees are based on employer size:
- $250 – Employers with fewer than 50 employees
- $500 – Employers with 50 to 499 employees
- $1,000 – Employers with 500 or more employees
Timing
Exemption applications are reviewed and approved on a rolling basis. The state recommends applying at least one quarter before the desired effective date. For exemptions beginning January 1, 2026, applications should be submitted by November 15, 2025.
Next Steps
We strongly encourage employers to begin preparing now by:
- Reviewing current leave policies and comparing them to the state’s PFML requirements.
- Consulting with insurance and benefits providers to confirm compliance.
Additional information on equivalent plans can be found on the state’s website:
MN DEED – Equivalent Plans
