Minnesota is set to launch a statewide paid family and medical leave program on January 1, 2026, offering up to 20 weeks of partially paid leave per year for most workers. The law, signed by Governor Tim Walz, extends coverage broadly — including to undocumented workers — and has prompted sharp criticism from some Republicans and business advocates over potential fraud and new payroll costs.
Minnesota’s new Paid Family and Medical Leave Law, signed in 2023 by Democratic Governor Tim Walz, will provide eligible workers with up to 20 weeks of paid leave per year beginning January 1, 2026. Under the program, individuals may receive up to 12 weeks of medical leave for their own serious health condition and up to 12 weeks of family leave, with a combined cap of 20 weeks in a single benefit year.
According to guidance from the Minnesota Department of Employment and Economic Development (DEED), medical leave may be used for serious health conditions such as surgery, injury, chronic illness, pregnancy, childbirth, and recovery, as certified by a health care provider. Family leave covers bonding with a new child through birth, adoption, or foster placement; caring for a family member with a serious health condition; supporting a military family member called to active duty; and responding to certain personal safety issues, including domestic violence, sexual assault, or stalking, for oneself or a family member.
The state-run insurance program will be financed through a payroll-based premium on wages. Official state and employer guidance indicates that the premium rate is set at 0.88% of wages starting in 2026, typically split between employers and employees, though employers may choose to cover the full amount. Commentators, including defense attorney William Shipley on X, have described this as a new payroll expense for businesses, emphasizing that employees’ wage-replacement benefits will be paid out by the state while employers fund the premiums.
State materials say the law applies to nearly every employer and almost all employees in Minnesota, including full-time, part-time, temporary, and most seasonal workers. Independent contractors, self-employed individuals, and Tribal Nations are not automatically covered but may opt in. A DEED webpage notes that “undocumented workers, youth workers, and new workers are also covered,” indicating that immigration status is not a condition of eligibility.
The program generally provides job protection for workers who use paid leave. DEED states that, after 90 days of employment, most workers must be restored to their previous job or an equivalent position upon returning from leave. Employers are also generally required to continue their share of health insurance and other group benefits during the leave, and they are prohibited from retaliating against employees for taking or requesting leave. State resources indicate there are limited statutory exceptions to these protections, though these exceptions are not fully detailed in the public-facing summaries frequently cited by critics.
The rollout of the law has unfolded in the shadow of a high-profile, Somali-linked food-aid fraud case in Minnesota, in which federal prosecutors allege that more than a billion dollars in taxpayer funds were stolen through the Feeding Our Future nonprofit network. Citing reporting from outlets such as City Journal and local and federal authorities, The Daily Wire has drawn a connection between that case and broader concerns about fraud risk in large state-managed benefit programs.
Against this backdrop, Republican state Representative Walter Hudson has emerged as a prominent critic. In a post on X highlighted by The Daily Wire, Hudson warned that the new program will “destroy small business in Minnesota,” arguing that the law is overly broad. He suggested it could enable abuse by allowing large numbers of people to claim leave to care for the same person based on a claimed “affinity” relationship.
Shipley, also quoted by The Daily Wire, mocked the program’s design as “so stupid it makes me laugh until I hurt,” pointing specifically to the allowance of up to 20 weeks of paid time off per year and the added payroll premium for employers.
Supporters, including state agencies and advocacy groups such as the Minnesota Council of Nonprofits, describe the program as a social insurance system aimed at improving economic security and reducing disparities in access to paid leave. They note that most workers will receive between 55% and 90% of their usual wages while on leave, up to a weekly maximum set at the state average wage, and argue that the statewide risk pool and shared premium are intended to keep costs predictable for employers and employees.
When asked recently about concerns that the new program could invite fraud, Walz responded that assuming Minnesotans would exploit the system was “disrespectful” to residents, according to video and reporting cited by The Daily Wire.
As the January 2026 launch date approaches, Minnesota employers are preparing for new payroll reporting, premium payments, and notice requirements, while workers and advocates are watching closely to see how the program’s broad coverage and protections play out in practice.
