MARSHALL — For area businesspeople, there are still a lot of questions about how Minnesota’s new Paid Family and Medical Leave program is supposed to work.

Although the start of the program is more than a year away, it was important to hear people’s concerns, said Greg Norfleet.

“Right now we’re still in the design portion of building the Paid Leave program, and it’s really important to be able to get the perspective of employers in today,” said Norfleet, the director of the Paid Leave program in Minnesota.

Earlier this week, Norfleet and other state partners working with the Paid Leave program met with area employers in Marshall. Part of the event gave an overview of the Paid Leave program, but Norfleet said lots of time was set aside for a question-and-answer session, and employer feedback.

“We’re still 16 months away from launch, and it’s a great time for us to get feedback from employers on what this program needs to look like in order to add an asset to your business rather than creating more administrative burden,” Norfleet said.

Norfleet said Monday’s visit to Marshall was part of a public engagement tour on Paid Family and Medical Leave. Representatives of the Paid Leave program were holding informational meetings in a total of 16 cities around Minnesota.

The engagement session drew a big response from Marshall area businesspeople, said Marshall Area Chamber of Commerce President Brad Gruhot. Organizers had to move the event from Marshall’s MERIT Center to the Southwest Minnesota State University conference center, where there was more room.

Minnesota’s Paid Family and Medical Leave program was passed in 2023, and updated in the 2024 legislative session. It is different from the earned sick and safe time program that went into effect this year.

“The law creates a Paid Family and Medical Leave insurance program, which will go live on Jan. 1, 2026,” Norfleet said. Under the Paid Leave program, an employee would be eligible for a maximum of 12 weeks of family leave, 12 weeks of medical leave, or a combination of the two not exceeding 20 weeks.

“Medical leave is exactly what it sounds like — it’s time off to care for your own serious health care condition,” Norfleet said. Employees would need to miss work for at least seven days to qualify for medical leave under the Paid Leave program, and have a health care provider certify the need for an absence, he said. “This is not for everyday absences.”

Family leave had a broader definition, including leave to welcome a new child, serving in military deployment, caring for a family member with a serious health condition, or supporting survivors of domestic violence.

After applying for paid leave and having their eligibility verified, employees would be paid partial wage replacements by the state.

“The Paid Leave program is going to be funded by premiums, just like in private insurance. But they’re going to be split between an employer and employee portion,” Norfleet said.

There are some types of workers, including independent contractors, self-employed people, and seasonal hospitality employees, who are not required to participate in the Paid Leave program.

The Paid Leave program would also provide job protections for employees out on leave. An exception would be for a temporary employee whose employment was contracted to end during the course of their absence.

“This program applies to both small and large businesses,” Norfleet said.

Norfleet said the Paid Leave program was partnering with other Minnesota agencies to set up the program. The Minnesota Department of Labor and Industry would be overseeing the job protection provisions of the law, and the Department of Commerce would help with a private plan option for employers. The Paid Leave division would also be partnering with the Division of Unemployment Insurance for a system for employer wage reports and premium payments.

A large part of Monday’s session was time for employers to ask questions about the Paid Leave program. Area businesspeople had questions about how paid leave would work with other types of seasonal employees besides hospitality workers. Agriculture and greenhouse businesses both hire seasonal employees, they said.

Audience members also expressed concerns on how the cost of paid leave premiums would affect wages and business costs. One audience member questioned the state assistance funding planned to help small employers when employees go on leave. Employers would be eligible for up to $3,000 for each absence — but that wouldn’t go far, especially if an employee took a full 12 weeks of paid leave, she said.

“It’s fair feedback,” Norfleet said. “The Legislature gave us about $5 million for these, and grants are limited to $3,000 by statute.”

While the Paid Leave program does not take effect until 2026, Norfleet said there were still several key dates ahead for the planning process.

“We’re undergoing a process called rulemaking, to gather feedback from employers on places where the statute needs clarification,” Norfleet told audience members.

Some things coming up soon included a public comment period for the rulemaking process that will open up this fall. Employers would also need to submit their first wage detail reports by Oct. 31.

“That is a report for informational purposes only. No payment is due at this time,” he said.

Next year, applications will open for employers that want to offer private benefits, he said. Employers would need to notify employees about Paid Leave benefits by Dec. 1, 2025.

More information on the Paid Leave program is available at paidleave.mn.gov, including frequently-asked questions and a newsletter.

“We are also building what we’re calling an employer toolkit,” Norfleet said.