Minnesota Employee Benefits

State Requirements

Minnesota enacted a paid family and medical leave insurance program providing up to 12 weeks of paid family leave and 12 weeks of paid medical leave (with a combined maximum of 20 weeks per year). The program is funded through payroll premiums shared between employers and employees. Benefits will be administered by a new state department and will cover qualifying events including serious health conditions, bonding with a new child, family caregiving, and military-related needs.

Minnesota also requires earned sick and safe time (ESST) for all employees, providing at least one hour of paid time for every 30 hours worked, up to 48 hours per year. ESST can be used for personal illness, family care, safety-related absences, and workplace closures. The state has a parental leave law requiring employers with 21 or more employees to provide up to 12 weeks of unpaid leave for birth or adoption. Minnesota does not have a state disability insurance program.

The small group market in Minnesota covers employers with 2 to 50 employees under ACA standards with guaranteed issue and community rating. Minnesota has a particularly strong regulatory framework for health insurance with its own Department of Commerce oversight.

Compliance Considerations

Minnesota operates MNsure, its state-based health insurance exchange. Employers must comply with both federal ACA requirements and Minnesota-specific mandates. The state mandates extensive benefits in insured plans including mental health parity (Minnesota was a leader in parity legislation), chiropractic coverage, diabetes management, autism services, and substance abuse treatment. Minnesota also requires coverage for early intervention services and has comprehensive continuation coverage provisions.

As the paid family and medical leave program phases in, employers will need to register, manage premium collection, and coordinate state leave with existing employer policies. Minnesota's ESST requirements add another compliance layer requiring careful tracking and record-keeping. The state's Women's Economic Security Act provides additional leave and accommodation protections. Employers should also be aware of Minneapolis and St. Paul local ordinances that may impose additional requirements, including scheduling predictability measures in certain industries.