Paid Leave Legislative Activity

Minnesota’s Department of Employment and Economic Development (DEED) confirmed today that the new paid leave program will launch with a 0.88% payroll tax, which is 25% higher than what was originally proposed (.7%) two years ago when the Legislature passed the law. DEED will do rate adjustments each year after receiving an annual actuarial analysis to investigate the solvency of the program. Employees will pay up to half of the payroll tax — 0.44% of their taxable wages in the first year — but an employer can choose to assume some of the employee cost.

More information on Minnesota’s premium rate and contributions are located at Premium rate and contributions / Minnesota Paid Leave.

The Maryland Department of Labor has proposed delaying the implementation of the Family and Medical Leave Insurance, or FAMLI, program to provide additional time for employers and workers before it launches. 

Under the recommended new plan, payroll deductions would begin Jan. 1, 2027, with benefits available starting Jan. 1, 2028. This decision comes in response to recent federal changes which may affect Maryland's workforce. The delay aims to ensure a robust and accessible program that supports Maryland's economy and workers.

This proposed change will require legislative action by the General Assembly in the coming weeks. 

In anticipation of the delay, Maryland Labor will be pausing any announced regulatory timelines for FAMLI, including the process for applying to use a private plan (originally scheduled to be rolled out in May 2025) and submitting wage and hour reports.

Minnesota has enacted a Paid Family and Medical Leave (PFML) bill, which will provide employees up to 20 weeks of PFML per year. The program is launching for Minnesotans in 2026. It provides paid time off when a serious health condition prevents an eligible employee from working, when they need time to care for a family member or a new child, for certain military-related events or for certain personal safety issues