Minnesota is one of a dozen states that have enacted a statewide program providing compensation to employees during family and medical leaves. Minnesota’s law (“the Paid Leave Law”) provides job protection and payment of benefits through a state-run insurance program to qualifying employees to take up to 12 weeks of leave for family and/or medical reasons (or a combined total of up to 20 weeks of leave if the employee qualifies for both types of leave in one benefit year). The insurance program will be funded through employer and employee contributions beginning on Jan. 1, 2026. Employees can also begin applying for compensation beginning on Jan. 1, 2026.
Recently, Minnesota Paid Leave, a division within the state Department of Employment and Economic Development, outlined how employers can use self-insured plans or plans from an insurance carrier to comply with the Paid Leave Law. The division refers to insurance plans providing coverage for the law as “equivalent plans.”
Equivalent plans must allow for the same, or more comprehensive, coverage than is expressly required by the Paid Leave Law. The division details the conditions that an equivalent plan must meet to comply with the Paid Leave Law. Employers can choose to use an equivalent plan to cover one leave category (family or medical) and can participate in Minnesota’s Paid Leave program to cover the other leave category (family or medical).
The Minnesota Department of Commerce will begin accepting applications from employers to use equivalent plans “in the spring of 2025,” according to the division. The Minnesota Department of Commerce also recently published a checklist for employers to submit along with their equivalent plan application.
Minnesota Paid Leave is set to provide more information about equivalent plans soon. According to the division, the information is likely to include a cost estimation calculator for employers and employees, along with more details about the application process employers must follow to secure an approved equivalent plan.
The division published final proposed rules in December that, if adopted, will regulate the state’s Paid Leave Law.
Gina K. Janeiro, Elaine Luthens, Kaylyn R. Stanek, and Hadley M. Simonett are attorneys with Jackson Lewis in Minneapolis. © 2025 Jackson Lewis. All rights reserved. Reposted with permission.
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