Lake Elmo staff brief council on Minnesota paid family and medical leave, recommends private third‑party plan

Administrative Services Coordinator Miss Doyle briefed the Lake Elmo City Council workshop on Minnesota Paid Family and Medical Leave (PFML), explaining coverage, employer costs and next steps and recommending the city adopt a private third‑party plan that staff says would lower the city’s premium and offer administrative advantages.

The PFML program, established by the state in May 2023 and effective Jan. 1, 2026, provides job‑protected paid time for qualifying medical and family reasons, including bonding for a new child, care for a family member or safety leave related to domestic violence, assault or stalking. Miss Doyle told the council the program covers full‑time, part‑time, seasonal and intern employees who meet the state’s earnings threshold and that employees who primarily work in Minnesota are covered even if they live in Wisconsin.

Miss Doyle said the state plan premium for 2026 is 0.88 percent of payroll; she estimated that would equal roughly $35,500 for the City of Lake Elmo and explained Minnesota law allows employers to pass up to 50 percent of the premium to employees (a 50/50 split would make the city’s share about $17,750). Miss Doyle presented private‑market proposals that quoted a lower rate (0.76 percent) with a two‑year rate lock and administrative features the city’s broker recommended; staff said the private option could pay the employer’s…