Minnesota’s new paid leave law, effective today, opens taxpayer-funded benefits to illegal immigrants based on earnings alone, without citizenship checks, fueling conservative outrage over government handouts to non-citizens.

Law Takes Effect January 1, 2026

The Minnesota Paid Leave law activates today, requiring all employers to set up accounts with the Department of Employment and Economic Development before January 1. Premiums fund up to 12 weeks of medical leave or 12 weeks of family leave, combining for a maximum of 20 weeks per benefit year. Employees qualify after earning roughly $3,700 to $3,900 in the prior year within Minnesota, with job protection kicking in after 90 days of employment. This broad coverage exceeds federal FMLA limits, which apply only to larger firms and offer unpaid leave.

Minnesota’s paid leave law was written by idiots.

As a one-man LLC,

I could claim a back injury, collect 90% of my income up to $1,433 per week.

Then I can apply for a $3,000 state grant and say I’m using the money to learn about the new law. pic.twitter.com/fUsVelLOYZ

— CiceroMN (@cicero_mn) December 11, 2025

Broad Eligibility Sparks Immigration Concerns

Sources confirm no explicit citizenship requirement for benefits, tying access solely to Minnesota earnings and 50% work or residency there. Critics argue this effectively extends paid leave to illegal immigrants who work under the table or with false documents, diverting funds from American families. In 2025, President Trump protected over $40 billion in federal benefits from non-citizens via executive order, highlighting Minnesota’s policy as out of step with national efforts to prioritize citizens. This setup undermines fiscal responsibility amid past overspending.

Employers must provide employee notifications by December 1, 2025, and small businesses faced aid application deadlines on November 15. The state plan offers wage replacement up to the state average, with private plans as an alternative allowing up to 26 weeks post-employment. Anti-retaliation protections ensure workers can take leave without job loss fears.

Employers Face New Burdens

All Minnesota employers, including small firms, pay into the 0.88% payroll tax, split evenly at 0.44% each, raising operational costs in an economy recovering from Biden-era inflation. The Minnesota Chamber of Commerce labels it a “forced mandate,” stressing administrative complexities like wage reporting and policy updates. Small employers qualify for reduced rates and aid, but universal coverage hits family-owned businesses hardest, echoing frustrations with government overreach.

🚨 JUST IN: Tim Walz is proud to announce Minnesota has just launched a 20-week paid leave program that will apply to SOMALIS and MIGRANTS.

Recipe for freaking disaster.

DEFUND MINNESOTA. Voters need to clean house. pic.twitter.com/WOljEatzJ4

— Eric Daugherty (@EricLDaugh) January 2, 2026

Legal experts from Lathrop GPM warn the law significantly alters the employment landscape, demanding immediate policy adjustments. University of Minnesota HR guidance details earnings thresholds and healthcare certifications for claims, including intermittent leave for bonding not available under FMLA. HJ Law Firm outlines state-funded time off for family care, while DEED focuses on payments and protections.

Contrasts with National Reforms

Minnesota’s expansion builds on federal FMLA from 1993 but mandates payment and covers broader family like siblings and grandparents, plus safety leave for domestic violence. Long-term, it may boost retention but increases labor costs across sectors, interacting with existing PTO plans. Pro-employer voices highlight complexity and expenses, while supporters emphasize caregiving support for military families and communities. Amid Trump’s 2025 accomplishments securing borders and cutting wasteful spending, this state-level mandate feels like a throwback to globalist, open-border policies frustrating conservatives.

Paid leave includes partial wage replacement and job protection, affecting workers in pregnancy, serious illnesses, and family needs. Economic impacts include higher payroll expenses mitigated somewhat for small firms, but overall, it fuels debates on mandates versus individual liberty and limited government.

Sources:

Minnesota Paid-Leave Law Set to Take Effect January 1, 2026

Minnesota Paid Leave – University of Minnesota HR

Minnesota Paid Leave Official Site

Are You Ready? Paid Family and Medical Leave (PFML) in Minnesota – MN Chamber

Overview of Minnesota’s Paid Family and Medical Leave Act (Part 1: Understanding Employer Obligations)