In January 2025, the Minnesota Paid Leave Division issued guidance regarding how employers can use self-insured plans or plans from an insurance carrier to comply with the Minnesota Paid Leave Law. The division refers to insurance plans providing coverage for Minnesota’s Paid Leave law as “equivalent plans.” Equivalent plans must allow for the same, or more comprehensive, coverage than is expressly required by existing paid leave law and employers can choose to use an equivalent plan to cover one leave category (family or medical) and can participate in the state’s paid leave program to cover the other leave category (family or medical). Also, employers approved for an equivalent plan must still submit wage detail reports to the state each quarter and comply with requirements to notify employees about paid leave coverage. The Minnesota Department of Commerce will begin accepting applications from employers to use equivalent plans in the spring of 2025.
Equivalent plans for family or medical leave must meet 12 conditions, including that costs to employees cannot be more than what their premiums would be under the state plan, and that job protections must be at least equal to those provided by the state plan. All employers with at least one employee working in Minnesota will have the option to use equivalent plans.