Minnesota’s Upcoming Paid Leave Program and Changes to Break Requirements Take Effect, January 1, 2026

On January 1, 2026, Minnesota’s Paid Leave Law, which provides partial wage replacement benefits for time away from work under certain circumstances through a state-run program, will take effect. In addition, changes in required meal and rest breaks will also take effect on January 1, 2026. Employers should prepare now to comply with the updated requirements.

State-Run Paid Leave Program

Minnesota’s Paid Leave program provides job protection and partial wage replacement to employees (including part-time employees) who take leave for a qualifying condition, which include medical leave for one’s own serious health condition or a family member’s serious health condition, bonding with a new child, supporting a family member called to active duty, and to address a safety incident such as domestic violence. By December 1, 2025, employers must inform their employees about the new program.

Starting on January 1, 2026, employees will be eligible to receive up to twelve weeks of paid medical leave and up to twelve weeks of paid family leave in a single twelve-month period, with payments based on earnings in the prior year. While an employee can take both medical leave and family leave during the twelve-month period, the total leave in that period cannot exceed twenty weeks. Remote employees are eligible for leave if they work from home in Minnesota at least 50 percent of the time. If an employee does not work at least 50 percent of their time in any single state, they are also eligible for leave if they live in Minnesota.

The program will be run by the State of Minnesota, much like how the state runs its unemployment insurance program. The program is funded through premiums on employee wages, which are split between the employer and employees. Employers must contribute a minimum of 50 percent of the total premium, though they may choose to cover 100 percent of the premium. While most employers will have an initial premium rate of .88% of covered wages, small employers (those with 30 or fewer employees in Minnesota) will pay a lower premium.

When an employee takes leave covered by the program, the State will pay the employee directly. Most individuals will receive between 55% and 90% of their regular wages while on leave, depending on income level, with a maximum weekly benefit equal to the state’s average weekly wage. This amount is adjusted annually and will be $1,423 when the program begins in 2026. Employers will be able to designate other paid benefits as supplemental benefits which will allow employees to receive their full salary while on leave.

All employers are required to report wage details for their employees using the same online reporting system as Unemployment Insurance (UI). The first premium payments are due on April 30, 2026, based on wage details reported between January 1, 2026 and March 31, 2026. For organizations with employees who are not covered by the UI program, employers must set up a Paid Leave Only account through the UI website. 

Paid leave under the Act does not replace leave under the Federal Family and Medical Leave Act or Minnesota Parental Leave Act, but leave may run concurrent with leave under these laws. Similarly, paid leave under the Act does not replace Earned Sick and Safe Time under state law.

All Minnesota employers, regardless of size, except the federal government and tribal entities, must participate in the State’s Paid Leave Program. In lieu of participating in the state-funded program, an employer may choose to provide paid sick leave benefits through an equivalent plan approved by the state annually which provides benefits at least as good as those provided by the state. Equivalent plans can either be purchased from an insurance carrier or an employer can self-insure and provide coverage to their employees themselves. However, self-insured plans must be backed up by a surety bond equal to one year of premiums under the state plan. Employers who provide equivalent plans will not pay premiums to the state, but will still have obligations under the law, including submitting wage detail reports and notifying employees about coverage.

Employees on leave are entitled to certain job protections including: (i) if an employee has worked for more than 90 days, they must be returned to their original job or an equivalent position at the end of leave and (ii) continuation of health insurance while on leave. In addition, employers may not interfere with or retaliate against an employee who applies for or uses paid leave.

Resources from Minnesota’s website on employee posters and notifications can be found here. 

Upcoming Changes to Minnesota Meal and Rest Break Requirements

Rest Breaks

Under current law, employers must provide “adequate time” within each four consecutive hours of work for employees to use the nearest restroom. Beginning January 1, 2026, employers will be required to provide a paid rest break of at least 15 minutes, or enough time to use the nearest convenient restroom—whichever is longer. These breaks must occur within (not at the end of) each four consecutive hours worked, and employees may take them even if they do not need to use the restroom. Minnesota requires that breaks less than 20 minutes long must be paid.

Meal Breaks

Currently, employers must permit “sufficient time” for a meal when an employee works eight or more consecutive hours. Starting January 1, 2026, employers must allow a meal break of at least 30 minutes when an employee works six or more consecutive hours. The meal break may be unpaid only if the employee is fully relieved of all duties during the break.

Minnesota law allows employers and employees to establish different break requirements through a collective bargaining agreement. If such an agreement is in place, its terms will govern instead of the statutory requirements.

Employers who fail to provide the required breaks will owe the employee pay for the break time that should have been allowed at the employee’s regular rate of pay, plus an additional equal amount as liquidated damages.

To prepare for these changes, employers should review and revise their policies and handbooks before January 1, 2026, ensuring that break entitlements are clearly communicated and that employees can take breaks without interference or retaliation.

Next Steps

Given the upcoming changes, Minnesota employers should review and update their policies accordingly to ensure compliance. If you have any questions regarding the information in this update, please contact your Quarles attorney or:

Judi Williams-Killackey: 414-277-5439 / judi.williams@quarles.com

Chris Nickels: 414-277-5519 / chris.nickels@quarles.com

Claire Afable: 414-277-5293 / claire.afable@quarles.com