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Minnesota’s Paid Leave Approvals Top 75,000 as Payouts Outpace Premiums

State officials are conducting an actuarial review to set 2027 premium rates to shore up a funding gap.

Overview

  • Six months after launch the Department of Employment and Economic Development processed 126,373 applications and approved nearly 75,000 for paid family and medical leave.
  • Approved claimants have received about $598 million in benefits while the program has collected roughly $344 million in payroll premiums and used a one-time startup fund for the difference.
  • Bonding leave made up about 38,000 approved cases and the typical weekly payment was $1,083 with a program cap of $1,423 per week.
  • More than 40 percent of applications were denied, most often for missing health-provider certification or other paperwork, and some complex medical claims have faced multiweek delays that caused financial strain for applicants.
  • DEED said it will announce 2027 premium rates after an independent actuarial analysis and it can raise the payroll premium from the current 0.88 percent up to the 1.1 percent statutory cap with changes taking effect on January 1, 2027.