By Joyce Hottinger

Minnesota Paid Leave launches Jan. 1, 2026. This program will provide partial wage replacement and job-protected leave for eligible workers during major life events, including caring for qualified family members or their own qualifying medical condition. Cities will participate in the state-administered program through the Department of Employment and Economic Development (DEED), unless they apply for an exemption with an approved equivalent plan. Here are some steps your city can take now to prepare for the 2026 program launch.

Designate a paid leave administrator

Each city must designate at least one paid leave administrator through Minnesota Unemployment Insurance (uimn.org) using the paid leave portal. The administrator will serve as the city’s main point of contact with DEED. This designation is required whether a city is requesting an exemption or participating in the state plan. DEED notes it may take up to one business day for a designated person to receive full access, so early planning is essential.

For cities using the state’s plan, responsibilities of the paid leave administrator include reviewing employee Minnesota Paid Leave applications, responding to DEED’s requests for information, and monitoring leave benefits determinations.

Under Minnesota Administrative Rules 3317.4150, employers must respond to DEED within seven calendar days of a request for information, though cities may respond sooner. Because of the time-sensitive nature of these requests, many cities may assign more than one administrator.

Paid leave administrators should become familiar with the portal, including how to log in and out, navigate the dashboard to review employee applications, and review benefits amounts. They also need to monitor DEED notifications and respond promptly. To support this, DEED offered a paid leave administrator webinar in September. Access the recording at bit.ly/MNPL-Events.

Other Minnesota Paid Leave to-dos

Beyond familiarizing city paid leave administrators with the DEED portal, here are four additional considerations for city staff ahead of the 2026 paid leave implementation.

Review leave notification procedures. Employers may require employees to follow existing absence-reporting procedures before applying for paid leave benefits. While one size rarely fits all, a best practice is to include a requirement in the city’s personnel policy that employees notify their supervisor of the need for leave at least 30 days before the leave starts, or as soon as practicable when leave is unforeseeable.

Decide whether to permit employees to “top off” Minnesota Paid Leave benefits. When an employee needs leave for seven or more consecutive days — or for certain events such as bonding leave or intermittent leave — they may be eligible for paid leave benefits. Under the state plan, DEED determines eligibility, but cities should encourage employees to review the state’s website to understand their rights and benefits.

Once a worker applies through the state plan, the city’s paid leave administrator will be notified through the portal. This allows the city to coordinate employer-provided benefits, such as an employee’s choice to apply supplemental benefits to “top off ” the paid leave benefits with other pay or offsets to a short-term disability plan. Reviewing policies now helps cities ensure alignment with Minnesota Paid Leave in 2026.

Employers may allow employees to use accrued paid leave — such as vacation, sick leave, or paid time off — as supplemental benefits. This option can help employees maintain their full salary during leave, but the choice rests solely with the employee. Cities should decide now whether they will offer this option and clearly communicate it in their policies.

Understand how Minnesota Paid Leave interacts with the Women’s Economic Security Act (WESA) and the Family and Medical Leave Act (FMLA). The League’s Personnel Policy template includes a model Minnesota Paid Leave policy and coordination language for other types of leave, including Minnesota’s WESA parenting leave and the federal FMLA. Cities can use this resource to aid in consistency across policies. View the Personnel Policy template at lmc.org/personnelpolicies.

Maintain group health insurance coverage. Minnesota Statutes, section 268B.09, subdivision 5 requires employers to continue group health insurance coverage for employees on paid leave. Employees remain responsible for any share of the premium they were responsible for before the leave. Cities should plan how premium collection will be handled during extended absences.

In summary, Minnesota Paid Leave represents a major change for both employers and employees. Cities that review and update their policies, train paid leave administrators, and plan for coordination of benefits now will be better equipped to meet the 2026 program launch.

Joyce Hottinger is assistant human resources director with the League of Minnesota Cities. Contact: jhottinger@lmc. org or (651) 281-1216.