It’s been about four months since the Minnesota Paid Leave Act took effect. We have received many questions from clients since January 1, 2026, some of which are more difficult to answer than others.

The Minnesota Department of Employment and Economic Development (DEED) has not published any statistics regarding the number of applications filed for paid leave, the average waiting period for approval or denial, and other similar questions. However, in a March 20 interview, DEED Deputy Commissioner Evan Rowe provided metrics for the paid leave program:

As of March 2026:

• 64,500 applications submitted.
• 49,834 decisions issued.
• 33,800 approvals.
• Two-thirds of applications resolved within 21 days.
• A team of about 80 adjudicators are reviewing applications.

With the significant number of applications being submitted, it’s clear that paid leave is impacting many Minnesota workplaces. Here are a few common questions our employment law attorneys have fielded from employers.

Common Questions About Minnesota Paid Leave

Question: What are the rules when an employee does not work 100% of the time in Minnesota for a Minnesota employer?

Answer: This depends on where the work is physically performed. If an employee works at least 50% of the time from Minnesota, that employee is covered by Minnesota Paid Leave. This includes employees who primarily work from home in Minnesota, even if they spend some time working in other states. If an employee works in one state other than Minnesota more than 50% of the time, the employee is not covered. However, if an employee does not work at least 50% of the time in any single state, but they live in Minnesota, then the employee is covered.

Question: We are restructuring a department, and one employee will be laid off. That employee is currently on paid family and medical leave. Can we lay them off during leave or do we have to wait until the leave is complete?

Answer: An employee can be terminated while on paid leave if their position has been eliminated, but the employer must prove that the employee would have been laid off due to restructuring or other reasons. If an employee is laid off during paid leave, the employer is not obligated  to continue the leave or maintain group health plan benefits if it can prove that the employee would have been laid off if not on leave (unless there is a collective bargaining agreement that provides otherwise).

Question: We currently offer short-term disability insurance, which is a supplemental benefit. How can we know what the employee will be paid as the Paid Leave benefit?

Answer: Supplemental benefits are certain benefits that compensate an employee during a paid leave. Examples include short-term disability benefits, paid time off, vacation, and salary continuation. Supplemental benefits can be used to “top off” the paid leave benefit up to the amount of the employee’s regular pay. The employer decides whether to allow supplemental benefits, and if they do, the employee can decide whether to use such benefits. However, an employee cannot be paid more than their regular salary during a paid leave.

In some cases, an employee who receives both a supplemental benefit and paid leave may end up being paid more than their regular salary. This is not permitted, and requires the employee to refund the excess to either the employer or the state. However, it is unclear how to determine whether the refund goes to the employer or the state, or how the refund is administered if owed to the employer.

In light of the ambiguity of these sections, employers may choose to delay paying the supplemental benefit until a determination has been made, either by the state of Minnesota or the employer’s self-insured plan administrator, about the employee’s Paid Leave benefit amount. This will likely result in a delay of supplemental benefit payments to the employee, but it is the safest route for employers.

Question: We offer a short-term disability plan for our employees. Should we continue to offer this plan in light of the Act?

Answer: This decision is entirely up to the employer, with the understanding that an employee with a salary continuation plan, such as short-term disability, may be unlikely to receive the full benefit. This is because these benefits can only be paid to “top off” the amount received as a Paid Leave benefit.

An exception to this would be a long-term insurance plan with benefits that extend beyond the time period during which the employee is on paid leave. For example, if an employee is being treated for cancer, and will be on leave for more than six months, the employer may want to offer long-term disability benefits to that employee. The employer should work with its insurance broker or disability insurance carrier to determine if there are options for changing the circumstances under which an employee receives these disability benefits.

If you have any additional questions about paid leave in Minnesota, please contact our Larkin Hoffman employment law attorneys.