Minnesota State Director Jon Boesche, along with Doug Loon, president and CEO of the Minnesota Chamber of Commerce, penned an opinion piece that ran in the Duluth News Tribune about the Paid Family & Medical Leave (PFML) mandate. The mandate will go into effect on January 1, 2026.

You can read the FULL op-ed here: https://www.duluthnewstribune.com/opinion/columns/statewide-view-minnesota-small-businesses-bracing-for-paid-leave-mandate

“Minnesota employers are staring down one of the largest new mandates in state history. Beginning Jan. 1, Paid Family and Medical Leave will take effect, requiring every employer and employee to participate in — and to pay for — a state-run benefits system.

The business community has long supported employers running their benefits systems. They know the value of supporting their workers in a competitive market; they offer flexibility, paid time off, and benefits that fit the needs of their specific industry and employees. But the state’s coming one-size-fits-all program replaces that flexibility with layers of bureaucracy that could increase costs and the administrative burden on all businesses — hitting small businesses especially hard.

Employers are doing their best to prepare. But it’s no small task.

The Nov. 15 deadline to apply for a private plan has now come and gone. For months, employers weighed one of the biggest decisions under this new law: whether to stay in the state-run program or apply for a private plan that meets the state’s strict requirements. Every employer that did not meet this deadline will now be automatically enrolled in the state program until April, when there will be a brief window to apply for approval of a private plan again. Time is running short for employers to determine what works best for their business and their employees.

Whether you have a private plan or work through the state, you’ll have to set up two new accounts through the state Department of Employment and Economic Development. That’s where employers will submit wage reports, pay the new payroll tax, and later review employees’ leave requests. For a small business with 10 or 20 employees, it’s one more complicated system to learn, maintain, and pay for.

Then there’s the impact of the mandate on workers. Employees need to understand that this program will replace much of the leave they already enjoy. They may have to work with a state agency to take leave instead of working with the human-resources department at their company. They will not receive full pay if they take leave. Because this program increases payroll taxes, and a portion of that comes from their paychecks, they will receive less pay. These conversations are not easy, and impacts on the workplace are very real.

Of course, this comes on the heels of yet another statewide mandate: Minnesota’s Earned Sick and Safe Time law, which took effect in 2024. Businesses are still adapting to that law’s cost and complex administrative burdens. Adding Paid Family and Medical Leave on top of that means two separate state programs dictating how time off must be tracked, approved, and paid.

Businesses value their employees and understand the need for flexibility during life’s challenges. But they’re also worried about costs, compliance, and the impact on their ability to keep doors open and workers employed. Small businesses, which make up a vast majority of Minnesota employers, will feel it the most. They don’t have compliance departments to manage the complexity of these new mandates. They have owners who do payroll on Sundays.

That’s why the Minnesota Chamber of Commerce and Minnesota’s National Federation of Independent Business are working together to ensure the business voice is heard. As the state rushes to stand up this complex program, we’re urging regulators and lawmakers to provide the clarity, flexibility, and resources employers need to comply.

But we can’t do it alone. We encourage every employer, large or small, to stay informed, ask questions, and share feedback on what’s working and what’s not. Together, we can push for a program that supports employees without crushing the businesses that employ them.”