Starting in 2026, new Paid Family and Medical Leave rules have taken place in Minnesota. Under new rules, the majority of employees in Minnesota will be eligible to receive “Paid Leave” compensation due to serious injury or family events and issues. To qualify for Paid Leave, you must work at least half of the time in the state of Minnesota and earn a certain minimum amount in the past year. For 2026, you must have earned at least $3,900 to qualify. You also do not need to work full-time to qualify.
Most Minnesota workers are automatically covered by Paid Leave. However, if you are an independent contractor, self-employed, or a member of a Tribal Nation, you will need to opt in to be eligible.
For medical leave specifically, employees are entitled to up to 12 weeks of Paid Leave payments a year. However, receiving Paid Leave may impact what other benefits are received, including workers’ compensation benefits, which arise from workplace injuries.
In applying for Paid Leave, any amount received in workers’ compensation benefits must be disclosed. While you may be able to collect from both workers’ compensation and Paid Leave, the amount you receive from workers’ compensation is subtracted from Paid Leave. If workers’ compensation payments exceed Paid Leave, you would not be eligible to receive any Paid Leave payments. Currently, the maximum you can receive from Paid Leave is $1,423, or the average weekly wage (AWW) in the state of Minnesota. While it affects wages, receiving workers’ compensation does not affect Paid leave time.
It is a good idea to discuss with your employer whether they have short term or long term disability benefits available to you, as these benefits can impact your entitlement to Paid Leave. Some employers are self-insured for their Paid Leave benefits, which may affect how much you receive or whether you need to pay the benefits back when you are injured at work. Ask your employer for a copy of their short term disability, long term disability, and/or paid leave policies following an injury at work. If you receive short term or long term disability benefits, and subsequently win or settle your work comp claim, you may have to pay those benefits back. If your employer is self-insured for any of those benefits, you may not have to pay those benefits back if you settle your case. Having an attorney review these policies and advise you on how these benefits may impact your workers’ compensation claim can save you a lot of money and headaches.
If a wage loss workers’ compensation claim is denied, you can still apply for Paid Leave or unemployment. You cannot receive Paid Leave and unemployment benefits at the same time. If you are taken off work completely by a doctor, Paid Leave allows you to keep your job while you are unable to work. On unemployment, you must actively be seeking work, which may be difficult. You can still file for unemployment even if you are not receiving wage loss but you have work restrictions that prevent you from being able to work. Should you have a workers’ compensation case that settles, there is a strong likelihood you would not have to pay back these benefits, as the current policy of the Minnesota Department of Employment and Economic Development is to not intervene in workers’ compensation matters, meaning if your work comp claim is denied but later settles, you can potentially collect both Minnesota Paid Leave and workers’ compensation benefits. If you have questions about how Minnesota Paid Leave and workers’ compensation benefits coordinate, give The Law Office of Joshua Borken a call for answers.
