Minnesota’s Paid Family and Medical Leave program launches in approximately six months. Employers now have approved alternatives to the state program, with the Minnesota Department of Employment and Economic Development (DEED) publishing its list of compliant private plans and self-insurance options.

Alternative Options to State Plan

Employers have two alternative options to utilizing the state program: self-insure or private insurance carrier plans. Regardless of your choice, you must provide paid family and medical leave that offers the same or better coverage to all employees, costs employees no more than the state program, and provides equal job protection.

Self-Insured Plans

Employers may choose to self-insure for paid family and medical leave, which means you manage paid leave requests and payments directly to employees. However, self-insured plans must be backed by a surety bond to ensure payment capability. The surety bond must be:

• Issued by a surety company authorized to do business in Minnesota, and
• Equal to your total annual premiums under the state plan.

To calculate the required bond amount, use the DEED Paid Leave calculator: https://mn.gov/deed/paidleave/employers/premiums/index.jsp

Insurance Carrier Plans (Private Plans)

The second option is enrolling in a private plan sold by an approved insurance carrier. DEED has published the list of approved carriers with compliant plans at: https://mn.gov/deed/assets/approved-equivalent-plans_tcm1045-695686.pdf

How to use the alternative plans?

You may choose either alternative at any time, but you must request an Equivalent Plan Substitution through DEED. The process involves setting up required accounts, submitting documentation, and paying a nonrefundable fee (between $250–$1000 depending on employer size).

Even with approved alternative plans, employers remain subject to certain state requirements. You must continue submitting wage detail reports to the state each quarter and comply with all employee notification requirements.

All employees must be informed of their rights and benefits under Paid Leave by December 1, 2025. These notices must be provided in employees’ native language, and workplace posters must be displayed in English and any language spoken by five or more employees. For employees hired after December 1, 2025, you must provide the required notice within 30 days of their start date. DEED will be providing a model notice for Employers to follow. Contact us with any questions regarding Minnesota Paid Leave.

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