Minnesota Paid Family and Medical Leave Program Opens, Nearly 12,000 Apply
Minnesota paid family and medical leave applications are surging following the official launch of the state’s new program, with nearly 12,000 workers applying in the first weeks. The program, administered by Minnesota Department of Employment and Economic Development, allows eligible workers to take paid time off for childbirth, serious illness, caregiving, and other qualifying life events. State officials say early demand highlights the need for paid leave, while small business owners say the program could improve retention and reduce long-term costs.
Minnesota’s new paid family and medical leave program is officially open for applications, and tens of thousands of workers have already sought benefits in the first weeks of the rollout.
The Department of Employment and Economic Development (DEED) said this week that the program’s full application launched recently, with applications for “bonding leave” for parents who welcomed a child in 2025 having gone live in early December. As of Jan. 2, 11,883 Minnesotans have submitted applications, and the agency has completed reviewing 6,393 of those.
“Receiving nearly 12,000 early Paid Leave applications shows just how motivated people are to engage with this new program,” said DEED Commissioner Matt Varilek. “Our website is managing traffic well, and our contact center team is prepared to answer questions from Minnesotans who need assistance. We’re proud and excited to implement this program for Minnesota.”
The benefit program, which took effect Jan. 1 after lawmakers passed enabling legislation in 2023, makes Minnesota the 13th state with a government‑run paid leave system. It allows most employees to take up to 12 weeks of family leave and up to 12 weeks of medical leave, with a maximum of 20 weeks total per year for qualifying events like childbirth, serious illness, caring for sick relatives, personal safety issues, or military family support.
Financing comes through a 0.88% payroll tax on most employers, which may be split equally with employees. Employers can choose to absorb the cost entirely or pass up to half onto workers. The state allocated $668 million from its 2023 budget surplus to support initial implementation.
For small business owners, the program represents both opportunity and change. At Smart Set Printing, owner Kevin Brown said the program could ease financial strain his company faced in the past supporting employees on unpaid or limited leave.
“About four years ago, one of my employees had a baby. I wanted to keep her as an employee, and we agreed she would use her three weeks of paid vacation. I also had to pay contract laborers to cover her job. That cost me over $2,500 plus more in wages,” Brown said.
Under the new state system, Brown estimates his annual payroll tax contribution will be around $1,000, “way less than the average cost of hiring, onboarding and training a new employee,” he said. “I lost a number of employees to Target not because of wages but because of benefits I couldn’t provide.”
Business owner Lillian Anderson said she wished the program had existed earlier, recalling the challenges of running a business while caring for her terminally ill mother. “Programs like this help workers and business owners balance personal responsibilities with employment,” Anderson said.
Proponents maintain the program will help Minnesota employers compete for talent in a tight labor market and improve worker retention. State Sen. Alice Mann said the law will help close gender and racial wage gaps and benefit workers across sectors.
But the rollout also presents challenges and adjustments for employers. Business owners must update payroll systems, ensure compliance with reporting requirements, and plan for employee absences while maintaining operations.
Some employers already offer private paid leave plans that meet or exceed state standards, allowing them to continue those arrangements instead of enrolling in the state system. DEED and business groups have released resources and tools to help employers navigate the new requirements.
Economists note that paid leave programs can yield long‑term economic benefits by reducing turnover, increasing employee satisfaction, and enhancing workforce stability. For workers, access to paid leave can mean the difference between keeping a job and enduring financial hardship during major life events.
Applications for the program must be submitted through LoginMN, Minnesota’s centralized portal. Workers must verify their identity and provide documentation from a qualified health care professional or other approved source certifying the need for leave.
As the state continues processing early applications, DEED expects many more workers will turn to the program throughout 2026. Officials project that about 130,000 claims could be approved during the first year of operation.
For small businesses like Smart Set Printing, the coming months will test how the new program affects operations and workforce planning. But Brown said the adjustment may ultimately benefit employers and employees alike. “This gives businesses a more predictable and shared way to support workers during life’s most significant moments,” he said.
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