Minnesota Paid Family & Medical Leave (PFML)
What Is Changing in Minnesota?
Starting January 1, 2026, Minnesota will roll out a state-administered Paid Family & Medical Leave (PFML) program. This will give employees up to 20 weeks of partially paid, job-protected leave to recover from a serious health condition, bond with a new child, or care for a family member.
For employers, this means new payroll contributions, new compliance requirements, and new expectations for employee communication.
That’s where Optima comes in.
How Optima Helps Your Business
Compliance Made Simple
The PFML law introduces new rules around payroll, job protection, and employee rights. Optima helps you:
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Configure payroll deductions for the new 0.88% payroll tax (split between employers and employees).
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Understand your options if you want to implement a private plan alternative that meets or exceeds state requirements.
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Stay compliant with posting and notice requirements beginning December 1, 2025.
Employee Communication & Education
Clear communication prevents confusion and boosts employee trust. Optima creates:
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Customized employee handouts explaining how PFML works and how to apply.
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Training for managers so they know what to do when employees request leave.
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Easy-to-read FAQs tailored to your workforce.
HR Process Integration
Paid leave doesn’t exist in isolation. It touches your policies, payroll, and operations. Optima helps you:
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Integrate PFML with your existing PTO, sick leave, and parental leave policies.
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Coordinate PFML with federal FMLA and Minnesota parenting/pregnancy leave laws.
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Adjust workforce planning so coverage gaps don’t disrupt your operations.
Small Business Guidance
We know small businesses have unique challenges. Optima specializes in right-sizing solutions for organizations with under 50 employees:
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Explaining small employer contribution relief.
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Helping you prepare for reduced administrative burden.
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Offering cost-effective HR outsourcing to manage compliance without needing a full-time HR team.
Key Dates to Know
| Date | Employer Action Required |
|---|---|
| June 16, 2025 | Final rules published – Optima provides compliance updates. |
| December 1, 2025 | Employers must post PFML workplace notice and distribute to employees. |
| January 1, 2026 | Program begins. Payroll contributions start; employees can apply for leave. |
| April 30, 2026 | First employer premium payments due. |
Why Partner with Optima?
Minnesota’s Paid Family & Medical Leave program is designed to benefit employees, but the administrative and compliance burden falls on employers. Optima ensures you’re prepared, compliant, and confident, while keeping your employees informed and supported.
We don’t just help you “check the box.” We help you turn compliance into culture by building trust, reducing turnover, and showing employees that you care about their wellbeing.
Get Started Today
Contact Optima HR Advisory to schedule a consultation. We’ll review your current policies, design a compliance roadmap, and prepare your business for Minnesota’s new PFML law.