Quarterly PFML Update: Exploring Minnesota’s new PFML law and state voluntary plans

Paid family and medical leave (PFML) laws have exploded in the past few years as more states develop their own leave programs in lieu of a national paid leave policy.

In May, Minnesota added its name to the growing list of states to pass PFML legislation, becoming the 12th state to sign leave coverage programs into law.

Guardian experts Kristy Helkenn, Kristin Seidman, and Eric Dupont recently came together in a webinar dedicated to exploring Minnesota’s new law and addressing some of the common questions around voluntary plans.

Minnesota’s new PFML program and what it means for employers

Minnesota’s PFML law establishes mandatory participation for employers with at least one employee working in the state, not including certain self-employed workers, independent contractors, or seasonal employees.

Benefits begin on January 1, 2026, and include the following leave types and maximum length of paid leave, with a combined maximum length of 20 weeks in a 12-month period.¹

As in most states passing PFML laws, covered family members categories are broader than what we see with FMLA. In Minnesota, a covered family member may be a(n):

• Spouse or domestic partner

• Child (biological, adopted, foster, step, in loco parentis, legal guardian, de facto parent)

• Parent or legal guardian

• Sibling

• Grandchild

• Grandparent or spouse’s grandparent

• Son-in-law or daughter-in-law

Individual who has a relationship with the applicant that creates an expectation and reliance that the applicant care for the individual, whether the applicant and the individual reside together

This final category continues a trend commonly referred to as the “affinity” relationship and allows for the employee to care for someone who is like family, provided the person meets other eligibility requirements. “Affinity relationships are a trend that we’ve seen with the recent launches,” says Seidman. “I think the simplest way to think of it is your chosen family, and that’s what many of these states are driving toward.”

The voluntary approach to paid leave

While Minnesota’s PFML law is a mandatory one, many states are implementing paid leave programs on a voluntary basis.

“The political and social climate in every state doesn’t support a mandate,” says Seidman, “so it’s simply not a solution that can be implemented across the country in all states.” But there’s more than one way to address workers’ need for paid leave.

The National Council of Insurance Legislators (NCOIL) Paid Family Leave (PFL) Insurance Model Act provides a framework for states to create a new line of insurance in which any insurer licensed to transact life insurance or disability income insurance will also be able to provide coverage for paid family leave. Employers can then choose to offer PFL as a benefits option to their employees.²

NCOIL and benefits of voluntary plans

The NCOIL model comes with a few built-in benefits for states and employers, helping speed up launch times and even allow larger employers to execute more benefit equity for employees across multiple states — some of which may have mandated PFML laws and some of which may not.

While employers are still trying to understand all the implications of these programs, the list of states adopting a voluntary approach continues to grow along with the mandated list. Employers will want to keep a careful eye on the developments in the states where they have employees.

Want to learn more about the new PFML law in Minnesota and voluntary plan options? Check out the full webinar to learn more.

1. Paid Family and Medical Leave for Individuals and Families, Minnesota Department of Employment and Economic Development (DEED), 2023

2. NCOIL Adopts Four New Model Laws at Annual Meeting in New Orleans, LA, NCOIL.org, 2022