The 2025 Minnesota budget bill (S.F. 17) signed into law by Gov. Tim Walz , included important updates to Minnesota leave laws, which was also the vehicle used in 2024 to introduce similar changes. Here’s what you need to know:
Minnesota Earned Sick and Safe Time
When: Most provisions effective July 1, 2025, except for frontloading (January 1, 2026)
Notice: Employers may require employees to provide notice when they need to use earned sick and safe time (ESST). If the need is unforeseeable, employers may require notice as reasonably required by their policy. Previously, employees were required to provide notice as soon as practicable. This amendment allows employers to set notice requirements so long as those expectations are reasonable and account for situations where shorter notice is unavoidable.
Documentation: Employers may require reasonable documentation when an employee uses ESST for more than two consecutive scheduled work days, to confirm the time off qualifies under the law. Previously, the ESST law set the threshold at three consecutive scheduled work days.
Replacements: Employees may voluntarily seek or trade shifts with a replacement worker (but cannot be required) to cover the hours the employee uses as ESST.
Frontloading: Employers may advance ESST to employees based on the number of hours they are expected to work for the remainder of the accrual year. If the employee ultimately works more hours than anticipated, the employer must provide additional ESST to reconcile the difference. These provisions have an effective date of January 1, 2026.
Minnesota Paid Family and Medical Leave
Premium rate adjustments: The maximum annual premium rate specified by law is 1.1% of taxable wages paid to each employee. Previously, the PFML law set the threshold at 1.2%.
FINEOS can help with your state leave programs
FINEOS will be ready to administer these new and amended state leave programs. Using modern insurance technology solutions like the FINEOS Platform can help insurance carriers remain compliant and competitive when leave legislation is revised and new products are authorized by governing jurisdictions. Learn more about how a modern, integrated disability and absence management (IDAM) solution can help your organization adapt to this rapidly evolving market and remain in compliance.
