Equivalent plans for paid leave

Employers can choose to meet their responsibilities under Minnesota Paid Leave by providing employees an equivalent plan that meets or exceeds the coverage offered by the state.

Employers approved for an equivalent plan will not pay premiums to the state, but have other obligations under Minnesota Paid Leave. Employers must still submit wage detail reports to the state each quarter and comply with requirements to notify employees about coverage.

Employers can begin to apply with the state for an equivalent plan exemption in the spring of 2025. Additional information will be available in the coming months.

Insurance carrier plans and self-insured plans

Equivalent plans can be purchased from an insurance carrier, or an employer can self-insure and provide coverage to their employees themselves. Self-insured plans must be backed up by a surety bond to guarantee leave payments can be covered.

Equivalent plans will be certified by the Minnesota Department of Commerce. See guidance from the Department of Commerce on equivalent plans here.

Family and medical leave

Minnesota Paid Leave provides both medical leave, for an employee's own healthcare needs, and family leave, to care for others.

An approved equivalent plan can cover both family and medical leave if coverage meets or exceeds the state plan, or only one leave type. Equivalent plans for family or medical leave must meet the following conditions:

All employees must be covered under the equivalent plan
Eligibility requirements cannot be more restrictive than the state plan
Weekly payments are at least equal to the state plan and are stated separately and distinctly from other benefits
Total weeks of available leave are at least equal to the state plan
Costs to employees cannot exceed what their costs would be under Minnesota Paid Leave
For medical leave, the equivalent plan must cover any serious health condition, or medical care related to pregnancy, that would be covered under the state plan
For family leave, the equivalent plan must cover any care for a family member with a serious health condition, bonding with a child, military-related exigency, or safety leave event that would be covered under the state plan
The equivalent plan cannot impose any additional conditions or restrictions on the use of leave beyond those in the state plan
The equivalent plan must allow any covered employee, who would be eligible for benefits under the state plan, to receive benefits under the equivalent plan
Employees must be covered by the equivalent plan while employed and for 26 weeks after separation, or until the individual is hired by a new employer
If a leave application is filed by a former employee, the equivalent plan must pay benefits for the full time of leave. Equivalent plans may not cut off eligibility for a former employee during an approved leave.

Employers who offer an equivalent plan for only one type of leave must pay premiums and participate in Minnesota Paid Leave to provide coverage for the other leave type.

Coverage and costs for employees

Minnesota Paid Leave provides both job protections and payments to qualifying applicants. Qualifying applicants can take up to 12 weeks of family or medical leave in one benefit year, or a combined total of up to 20 weeks if they qualify for both types of leave in one benefit year.

Approved equivalent plans must meet or exceed coverage under Minnesota Paid Leave with respect to:

Leave time available to current and recently separated employees
Payment rates to employees on leave
Job protections

As Minnesota Paid Leave is available to individuals who are not working but otherwise qualify for the program, equivalent plans must provide coverage to former employees for 26 weeks after separation (or until the individual begins a new job).

Premiums paid by employees for an equivalent plan cannot exceed what their costs would be under Minnesota Paid Leave.

Apply for an equivalent plan exemption

Beginning in the spring of 2025, employers can apply to have an equivalent plan recognized to meet the requirements of Minnesota Paid Leave. Applications will be accepted on an ongoing basis – there is no limited enrollment period for equivalent plans.

The Minnesota Department of Commerce will certify qualifying plans offered by licensed insurance carriers, so employers who purchase these plans will know they meet the requirements of Minnesota Paid Leave.

Stay informed about equivalent plans

Employers can begin to apply with the state for an equivalent plan exemption in the spring of 2025. Additional information will be available in the coming months, including a calculator to estimate employer and employee costs under Minnesota Paid Leave, and details on how to apply for an equivalent plan exemption.