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New Minnesota paid family leave law could allow some new parents to "double dip" in 2026, due to timing quirk

One of the biggest changes to Minnesota state benefits in decades is coming in just two months, and it could offer some new parents the unique opportunity to "double dip," thanks to a quirk in the timing. 

Currently, 24% of Minnesotans have access to paid family and medical leave. On Jan. 1, a new Minnesota law mandates that employers provide paid family leave to nearly every employee. This would include full-time, part-time and seasonal workers. 

Breaking that down, there will be 12 weeks of paid medical leave, 12 weeks of family leave to care for a family member who is ill, bonding with a new baby, or responding to a personal safety issue such as stalking or domestic violence. You can use both programs in one year, but the maximum overall leave you can get is 20 weeks per year. 

You will not get your full pay on the state-paid leave. According to a DEED calculator, a person earning $72,000 a year would get about 80% of their pay. 

One quirk of the program, according to the Minnesota Chamber of Commerce, is that parents of babies born in 2025 will be able to effectively "double-dip" and access both leave policies. Due to a quirk of the timing of the implementation of the new law, it would take the form of consecutive leaves, from both the company and from the state. In other words, if someone who had a baby earlier this year took leave under their company's insurer's policy, they would be able to access an additional leave through the state starting in 2026, provided it's taken prior to that child turning 1 year old.

The program is paid for with a 0.88% payroll tax that will be split between the employer and the employee. The program will be run much like the state unemployment office and will be administered by the state Department of Employment and Economic Development (DEED). WCCO reached out to DEED, which said no one on its staff would be available for an interview.

Meanwhile, the Minnesota Chamber of Commerce is holding seminars and working with hundreds of Minnesota employers to get them ready. 

"There are certainly varying degrees of readiness. Part of our charge right now is to increase education and awareness," said Lauryn Schothorst, with the Minnesota Chamber of Commerce. 

According to the state, more than 132,000 applications for leave are expected to be filed in 2026.

If businesses do not follow this law, they can be fined $10,000 per violation, and the employee can get double damages in terms of pay they would have gotten on leave. 

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