EMPLOYEE BENEFITS
EMPLOYEE BENEFITS - GENERAL Many employers offer health, life, disability, and retirement benefits even though these are generally not mandated (apart from specific requirements like workers’ compensation, ESST, and, starting 2026, Paid Family and Medical Leave). When benefits are offered, plans must comply with applicable federal (ERISA, COBRA, tax) and state insurance and continuation laws. Employers should ensure benefit plan design and administration are reviewed by qualified benefits counsel or consultants. MINNESOTA PAID LEAVE Minnesota’s Paid Leave program began paying benefits January 1, 2026 and administered by the Minnesota Department of Employment and Economic Development (DEED). Key points : • Coverage: Most employees who work in Minnesota and meet earnings thresholds will be eligible for state‑paid wage‑replacement benefits when they cannot work due to their own serious health condition, to care for a family member, for bonding with a new child, for qualifying military‑related reasons, or for certain safety‑related needs (similar to ESST “safe time”). • Duration: Employees may receive up to 12 weeks of medical leave and 12 weeks of family leave per benefit year, capped at a combined total (for many workers, up to 20 weeks / 800 hours). • Funding: Starting January 1, 2026 , employers will remit premiums based on taxable wages. The initial combined rate has been set at approximately 0.7 percent of taxable wage s, with employers generally allowed to share up to half of that cost with employees through payroll deductions. Rates, caps, and cost‑sharing details are subject to adjustment. • Reporting: Before benefits begin, employers must submit wage detail and hours information on a quarterly basis so the state can determine eligibility and benefit amounts. Paid Leave interacts with, but is distinct from, federal FMLA and Minnesota ESST. Employers should monitor official guidance from the Paid Leave program and the ESST program and update policies and payroll systems accordingly. ERISA‑GOVERNED BENEFIT PLANS The Employee Retirement Income Security Act (ERISA) governs most private‑sector: • Retirement plans (defined benefit pensions, 401(k), 403(b), profit‑sharing, etc.). • Welfare benefit plans (group health, disability, life, some severance and other benefits). ERISA sets standards on: • Plan documents and summary plan descriptions .
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