Minnesota officials say paid family and medical leave ready to launch Jan. 1, 2026; questions remain on implementation and costs

The House Workforce, Labor and Economic Development Finance and Policy Committee heard detailed implementation questions Feb. 24 as department officials briefed members on Minnesota's paid family and medical leave program and its operational readiness for a Jan. 1, 2026 start.

Why it matters: The program will create a statewide payroll-based premium and a public claims system intended to provide wage replacement for bonding, medical and safety leaves. Committee members pressed the Department of Employment and Economic Development on how much employers and workers will pay, how the department will handle early claim volume, and how the program will treat special cases such as college work-study students and hourly programs that route earnings to non-profits.

DEED officials said the department confirmed a preliminary premium rate of 0.88% for 2026 and that small employers (30 or fewer employees) are eligible for a reduced rate. "The department did confirm on Friday that the premium rate for . . . in 2026 will be point 88%," an assistant commissioner told the committee. DEED said the rate can be split 50/50 between employers and…