State paid‑leave officials say core systems on track for Jan. 1, 2026 launch; lawmakers press on testing and staffing

Deputy Commissioner Evan Roe of the Minnesota Department of Employment and Economic Development told the Senate Jobs and Economic Growth Committee on April 2 that the department expects the paid family and medical leave program to be ready to begin collections and benefits activity in 2026, with the first premiums due April 30, 2026, and the program operational Jan. 1, 2026.

The update focused on implementation milestones and outstanding work needed to deliver benefits and employer services on schedule. Roe and Greg Norfleet, director of the department’s paid leave division, described progress on employer wage reporting, premium rate setting, rulemaking, an equivalent private‑plan exemption process and technology delivery with vendor Nava PBC.

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Roe told the committee that wage detail reporting — collected through existing unemployment insurance filings — is a “quiet but really important milestone,” and that “over 160,000 employers have already completed their initial wage detail for paid leave by submitting their regular UI report.” He said the program’s total premium rate upon launch will be 0.88% applied to wages up to the Social Security (OASDI) wage cap this year ($176,100), and that premiums are shared between employers and employees. Roe also said first premiums are due April 30, 2026, and that employers may withhold up to 50% of the premium from employee paychecks starting Jan. 1, 2026, though employers may pay more for some or all employees.

The update summarized several other implementation pieces the department says are in progress: rulemaking submissions to the Office of Administrative Hearings, a process to review private “equivalent” insurance plans in coordination with the Department of Commerce, a web application for exemption requests, an outreach and engagement program that has held…