What if I operate in multiple states?

You must comply with Minnesota PFML for all employees working in Minnesota, regardless of where your business is headquartered. Employees are covered based on their work location, not your business location. If you operate in multiple states with PFML programs, you'll need to comply with each state's requirements separately.

How do I handle seasonal workers?

Seasonal workers are covered under Minnesota PFML if they meet the earnings requirements. You must withhold and pay premiums for all covered workers, including seasonal employees. They may qualify for benefits if they've earned sufficient wages during their base period.

What about independent contractors?

Independent contractors are generally not covered under Minnesota PFML. However, worker classification is crucial. If the state determines someone you classified as an independent contractor is actually an employee, you may be liable for unpaid premiums plus penalties. Follow Minnesota's worker classification guidelines carefully.

Can I require employees to use PTO or vacation time before PFML?

No. Employers cannot require employees to exhaust paid time off before using PFML benefits. However, employees may choose to supplement their PFML benefits with accrued PTO to receive their full wages. Employees have the right to decide whether to use PTO concurrently.

How does Minnesota PFML affect my existing leave policies?

Your existing paid leave policies remain in effect, and employees may use them to supplement PFML benefits. You cannot reduce or eliminate existing leave benefits because PFML is now available. PFML sets the minimum standard; you can always provide more generous benefits.

What if an employee works in Minnesota but lives in another state?

Employees are covered based on where they work, not where they live. If an employee works in Minnesota, you must withhold PFML premiums and they're eligible for benefits, even if they live across state lines. For remote workers, coverage depends on where they perform their work duties.

How do I handle employees paid on commission?

Commission earnings are considered wages for PFML purposes. You must withhold the 0.38% employee portion and pay the 0.5% employer portion on all commission payments. Calculate premiums on gross commission earnings before any deductions.

What about tipped employees?

Both cash wages and reported tip income are subject to PFML premiums. Withhold the employee portion from actual wages paid. The employer portion applies to total wages including tips. Report total wages (cash wages plus tips) on your quarterly wage reports.

Do I need to purchase separate insurance for PFML?

No. Minnesota PFML is a state-administered program, not an insurance product. You pay premiums directly to the state through quarterly reports. However, you may choose to apply for self-insurance status if you meet specific requirements, which involves different administration but similar financial obligations.

Can I pass the employer portion of the premium to employees?

No. Employers are prohibited from deducting the employer portion (0.5%) from employee wages. You can only deduct the employee portion (0.38%). Passing the employer cost to employees is a violation subject to penalties.

What if I already pay for private disability insurance?

Private disability insurance is separate from PFML. You must still participate in the state PFML program even if you provide private disability benefits. However, employees cannot receive both PFML and private disability benefits for the same leave period; payments are coordinated to prevent duplication.

What happens if I miss a compliance deadline?

Missing deadlines can result in penalties and interest charges. Late premium payments accrue interest. Failure to post required notices or notify employees can result in fines up to $1,000 per violation. If you miss a deadline, correct the issue immediately and contact DEED to discuss penalty mitigation.

How do I verify an employee's leave request?

When an employee applies for PFML, you'll receive an employment verification request from the state. You must complete and return this within 5 business days. Verify employment dates, wages, work schedule, and whether the employee provided proper notice. Your timely response ensures proper benefit calculation.

Can I contact the employee's healthcare provider directly?

No. HIPAA and privacy laws prohibit direct contact with healthcare providers without employee authorization. The state PFML program handles medical certification. If you have questions about medical documentation, contact the PFML program, not the employee's healthcare provider.

What if an employee doesn't return from leave when scheduled?

If an employee doesn't return as scheduled, contact them to determine the reason. They may need to extend their leave, which requires submitting additional documentation to the PFML program. Follow your standard absence policies, but be careful not to retaliate. Document all communications.

Do I have to hold the exact same position open during leave?

You must restore the employee to the same or an equivalent position with equivalent pay, benefits, and working conditions. If the exact position is eliminated due to legitimate business reasons unrelated to the leave, you must offer an equivalent alternative. Document any position changes carefully.

How does PFML interact with FMLA?

PFML and FMLA (Family and Medical Leave Act) run concurrently when both apply. FMLA provides job protection for up to 12 weeks unpaid; PFML provides wage replacement for up to 20 weeks. Most qualifying events trigger both. Employers covered by both must comply with all requirements of each law.

What if I need to conduct a layoff while someone is on PFML leave?

If you're conducting a legitimate layoff for business reasons, you may include employees on PFML leave if they would have been laid off regardless of their leave status. However, you must be able to prove the decision was unrelated to their leave. Document the business justification thoroughly and consult legal counsel.

Action Required2026 Compliance

Minnesota PFML Compliance Guide for Employers

Complete requirements, deadlines, and step-by-step guidance to ensure your business complies with Minnesota Paid Family and Medical Leave regulations.

📥 Free Employer Toolkit Downloads

PFML premium calculator, compliance checklist, FMLA policy template, leave forms, and more — all free.

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Immediate Action Required

All Minnesota employers must comply with PFML requirements starting December 1, 2025. Non-compliance can result in significant penalties.

First Deadline: December 1, 2025

Premium Collection Starts: January 1, 2026

Overview of Employer Obligations

Minnesota's Paid Family and Medical Leave (PFML) program requires all employers with employees working in Minnesota to participate in the state-administered insurance program. This comprehensive guide covers everything you need to know to maintain compliance.

Core Responsibilities:

Withhold 0.38% from employee wages for PFML premiums

Contribute 0.5% of wages as employer portion

Display required PFML workplace posters

Provide written notice to all employees

Submit quarterly wage and premium reports

Maintain employee health insurance during leave

Restore employees to same or equivalent position

Keep accurate records for at least 4 years

Prohibited Actions:

Cannot retaliate against employees for using PFML

Cannot pass employer premium costs to employees

Cannot require use of PTO before PFML

Cannot deny or interfere with leave rights

Cannot discriminate based on PFML usage

Cannot reduce existing leave benefits due to PFML

Who Must Comply

Universal Coverage: ALL employers with employees working in Minnesota must participate

Unlike some state programs, Minnesota PFML has no small business exemption. Whether you have 1 employee or 1,000, you must comply.

Private Employers

All sizes (1+ employees)
Must participate in state program
Can apply for self-insurance

Public Employers

State agencies
Counties and cities
School districts

Nonprofit Employers

501(c)(3) organizations
All nonprofit types
No exemptions by size

Limited Exemptions

• Federal government employees (covered under federal programs)
• Tribal government employees (tribal sovereignty)
• Self-employed individuals without employees (can opt-in voluntarily)

Critical Compliance Timeline

December 1, 2025

Critical Deadline

Employee Notifications & Poster Display

Post official PFML workplace poster in visible location

Distribute written PFML notice to all employees

Provide multilingual notices where required

Update employee handbooks with PFML information

Penalty for non-compliance: Up to $1,000 per violation

January 1, 2026

Premium Collection Begins

Begin Premium Withholding

Start withholding 0.38% from employee wages

Calculate employer contribution of 0.5%

Update payroll system with PFML deduction codes

Track premiums collected for quarterly reporting

Total premium rate: 0.88% of gross wages (0.38% employee + 0.5% employer)

April 30, 2026

First Payment Due

Q1 2026 Premium Payment & Wage Report

Submit quarterly wage report for January-March 2026

Pay total premiums collected (employee + employer portions)

Report individual employee wage information

Verify accuracy of all reported data

Late payment penalty: Interest charges plus potential penalties

May 1, 2026

Benefits Available

Employees Can Begin Taking PFML Leave

Prepare to receive employee leave notifications

Train HR staff on verification procedures

Establish process for continuing health benefits during leave

Prepare job protection and return-to-work procedures

Ongoing Quarterly Deadlines

Wage Reports & Premium Payments

Q1 (Jan-Mar)

Due: April 30

Q2 (Apr-Jun)

Due: July 31

Q3 (Jul-Sep)

Due: October 31

Q4 (Oct-Dec)

Due: January 31

Pro tip: Set up calendar reminders for 2 weeks before each deadline to ensure timely submission

Employee Notification Requirements

Employers must provide written notice about PFML rights and benefits at multiple points during employment. Failure to provide proper notice can result in penalties up to $1,000 per violation.

When to Notify

At Time of HireWithin first week of employment

AnnuallyAt least once per calendar year

When Leave RequestedWithin 5 business days of request

When Rights DeniedImmediate written explanation required

What to Include

Availability of PFML benefits

Qualifying reasons for leave

Benefit amounts and duration

How to apply for benefits

Job protection provisions

Premium contribution amounts

Retaliation protections

Contact information for PFML program

Employee's rights and responsibilities

Acceptable Notification Methods

Written NoticePhysical document with signature

EmailElectronic delivery with confirmation

Employee PortalDigital access with acknowledgment

Multilingual Notice Requirements

Employers must provide notices in the employee's primary language when:

• 10% or more of employees speak the same non-English language, OR
• Employee requests notice in their primary language

State-provided translations available in Spanish, Hmong, Somali, and other common languages.

Workplace Poster Requirements

Poster Display Requirements

Where to Display:

Conspicuous location where all employees can see it
Break rooms, time clock areas, or main entrances
Multiple locations for large workplaces
All work sites, including temporary locations

Poster Specifications:

Must be official state-issued poster
Full size, clearly readable
Not defaced or covered by other materials
Updated when state issues new versions

Remote & Distributed Workforces

Remote Employees

Email electronic version of poster
Post on employee intranet or portal
Include in digital onboarding materials

How to Obtain Posters

Download from Minnesota DEED website
Request physical copy from DEED
Print high-quality color version

Penalty for non-display: Up to $1,000 per violation

Premium Payment Obligations

Total Premium: 0.88% of Gross Wages

Split between employee and employer contributions

Employee Portion

0.38%

Withheld from employee paychecks
Applied to gross wages
Must appear on pay stubs

Employer Portion

0.50%

Paid by employer (not deducted from wages)
Applied to gross wages
Cannot pass cost to employees

Premium Calculation Examples

Gross Wages	Employee (0.38%)	Employer (0.50%)	Total Premium
$40,000/year	$152.00	$200.00	$352.00
$60,000/year	$228.00	$300.00	$528.00
$80,000/year	$304.00	$400.00	$704.00
$100,000/year	$380.00	$500.00	$880.00

What Wages Are Covered?

Included in Premium Calculation:

• Regular wages and salaries
• Overtime pay
• Bonuses and commissions
• Reported tips
• Paid time off (vacation, sick leave)
• Severance pay

Excluded from Calculation:

• Reimbursed business expenses
• Pre-tax benefits (health insurance contributions)
• Retirement plan contributions

Payment Schedule

Quarterly Payments

Premiums paid quarterly with wage reports

Payment Methods

• Electronic funds transfer (ACH)
• Online payment portal
• Check (if approved by DEED)

Late Payment Penalties

• Interest on unpaid premiums
• Penalty fees for late submissions
• Potential audit triggers

Quarterly Wage Reporting

Employers must submit detailed wage reports quarterly, similar to unemployment insurance reporting. These reports determine employee eligibility and benefit amounts.

Required Information

Employee full name and Social Security number

Total gross wages paid during quarter

Hours worked (if applicable)

Employee premium withheld (0.38%)

Employer premium paid (0.50%)

Dates of employment during quarter

Work location (for multi-state employers)

Submission Process

Online Filing (Recommended)

• Access Minnesota DEED employer portal
• Upload wage data via CSV or manual entry
• Receive immediate confirmation
• Automatic error checking

Paper Filing

• Complete Form PFML-WR
• Include all employee detail sheets
• Mail by quarterly deadline
• Keep copy for records

Common Reporting Errors to Avoid

• Incorrect Social Security numbers
• Miscalculating premium percentages
• Omitting employees who worked during quarter
• Using net pay instead of gross wages

• Missing quarterly deadlines
• Duplicate employee submissions
• Incorrect quarter dates
• Not reporting all wage types

Record-Keeping Requirements

Retention Period: Minimum 4 Years

Employers must maintain comprehensive records related to PFML for at least 4 years from the date records were created. These records must be readily available for state audits.

Required Records

Best Practices

Organized Storage

• Create dedicated PFML file system
• Separate folders by year and quarter
• Index documents for easy retrieval
• Use consistent naming conventions

Digital vs. Paper

• Digital records acceptable (recommended)
• Ensure backups and data security
• Maintain searchable format
• Paper originals can be scanned

Audit Preparation

• Conduct internal audits quarterly
• Verify all records are complete
• Test record retrieval systems
• Document any corrections made

Privacy & Security

• Limit access to authorized personnel
• Comply with data privacy laws
• Secure storage with encryption
• Proper disposal after retention period

Penalties for Non-Compliance

Non-compliance with Minnesota PFML requirements can result in significant financial penalties, interest charges, and legal consequences. Understanding potential penalties helps ensure compliance.

Financial Penalties

Poster & Notice Violations

Up to $1,000

Per violation for failure to post or notify employees

Late Premium Payments

Interest + Penalties

Accruing interest on unpaid amounts plus penalty fees

Misreporting Wages

Up to $5,000

For intentional misreporting or fraud

Retaliation Violations

$5,000 - $10,000

Plus back pay, reinstatement, and legal fees

Additional Consequences

State Audits

Increased audit scrutiny and frequency

Back Premium Collection

Liable for all unpaid premiums plus interest

Legal Action

Civil or criminal charges for serious violations

Reputation Damage

Public disclosure of violations

Employee Lawsuits

Private right of action for employees

License Suspension

Potential business license issues for severe cases

If You Receive a Violation Notice

1.Don't ignore it: Respond promptly to all communications from DEED
2.Correct the issue immediately: Take steps to come into compliance
3.Document corrections: Keep detailed records of remedial actions
4.Seek professional advice: Consult employment attorney if needed
5.Request penalty waiver: First-time violations may qualify for reduced penalties

Complete Compliance Checklist

Follow this step-by-step checklist to ensure full compliance with Minnesota PFML requirements. Check off each item as you complete it.

Common Compliance Mistakes to Avoid

Premium & Payment Errors

✗ Passing employer costs to employees

Deducting the employer 0.5% portion from employee wages is illegal.

✓ Correct: Only deduct employee portion (0.38%)

✗ Incorrect wage base calculation

Using net pay instead of gross wages for premium calculation.

✓ Correct: Calculate on total gross wages

✗ Missing quarterly deadlines

Late submissions trigger penalties and interest.

✓ Correct: Set reminders 2 weeks before deadlines

Notification & Communication Errors

✗ Not posting required workplace poster

Missing or improperly displayed posters result in fines.

✓ Correct: Post in all locations by December 1, 2025

✗ Incomplete employee notices

Providing partial information about PFML rights.

✓ Correct: Use state-approved notice templates

✗ Ignoring multilingual requirements

Not providing notices in employees' primary languages.

✓ Correct: Offer translated notices when required

Leave Management Errors

✗ Requiring PTO use before PFML

Mandating employees exhaust vacation before using PFML.

✓ Correct: Let employees choose whether to use PTO

✗ Not continuing health benefits

Canceling insurance during employee's PFML leave.

✓ Correct: Maintain benefits as if employee were working

✗ Not restoring position properly

Returning employee to lesser position after leave.

✓ Correct: Same or equivalent job with same pay/benefits

Record-Keeping & Reporting Errors

✗ Inadequate record retention

Discarding PFML records before 4-year minimum.

✓ Correct: Maintain organized records for 4+ years

✗ Incorrect Social Security numbers

Typos or wrong SSNs on wage reports.

✓ Correct: Verify all employee data before submission

✗ Not documenting notice distribution

No proof of employee notification.

✓ Correct: Keep signed acknowledgments

Most Serious Violations (Highest Penalties)

Retaliation

Firing, demoting, or discriminating against employees for using PFML

Intentional Fraud

Deliberately misreporting wages or premiums to avoid payments

Interference

Preventing or discouraging employees from applying for PFML benefits

Resources & Help

Minnesota DEED PFML Program

Employer Hotline

1-833-454-0084

Monday-Friday, 8:00 AM - 4:30 PM CT

Email Support

pfml.employers@state.mn.us

Online Resources

Downloadable Resources

📥 Complete Employer Toolkit

Calculator, checklist, forms, policy templates — all free

PFML Premium Calculator

Excel spreadsheet for premium calculations

Compliance Checklist PDF

Printable quick reference guide

Employee Notice Template

Customizable notice for distribution

Leave Request Form

Internal form for leave requests

Return to Work / Fitness for Duty Form

Documentation for returning employees

Additional Support Resources

Professional Assistance

• Employment law attorneys
• HR consultants
• Professional Employer Organizations (PEOs)
• Certified Public Accountants
• Payroll service providers

Industry Organizations

• Minnesota Chamber of Commerce
• SHRM Minnesota
• Minnesota Business Partnership
• Industry-specific associations
• Local chambers of commerce

Training & Education

• DEED webinars and workshops
• Online compliance courses
• HR certification programs
• Industry conferences
• Employer forums and roundtables

📘 Complete Employer PFML Guide

In-depth guide to managing PFML compliance, calculating costs, and handling employee leave requests.

Read Guide →

Frequently Asked Questions

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This guide is for informational purposes only and does not constitute legal advice. Consult with qualified legal and tax professionals for guidance specific to your business situation.

Last updated: January 15, 2026 | Based on Minnesota Statutes Chapter 268B