Minnesota paid leave law takes effect, altering payroll and scheduling for Target

Minnesota implemented a major expansion of leave and workplace rules on January 1, 2026, creating new obligations for employers and new benefits for employees across the state. The law provides up to 20 weeks of combined paid leave per benefit year: workers may take up to 12 weeks of personal medical leave and up to 12 weeks of family leave, with the two types capped together at a total of 20 weeks. Wage replacement under the program will range approximately from 55 percent to 90 percent of regular wages, subject to a statewide weekly cap.

Job protection provisions generally require restoration to the same or an equivalent position for eligible employees, though the law includes timing and eligibility requirements that determine who qualifies for restored employment. Employers are responsible for collecting and remitting program premiums; for 2026 payroll the employer share was illustrated at about 0.44 percent. The law also introduced new requirements around the timing of breaks and meal periods, and coincided with Minnesota’s minimum wage increase that became effective at the start of the year.

For Target’s Minneapolis corporate staff and regionally based Minnesota teams, the new law affects both benefits administration and day-to-day operations. Human resources and payroll teams will need to incorporate eligibility thresholds into benefits systems, implement payroll deductions or remittances, and issue legally required employee notices. Benefits teams will also need to advise workers on how leave can be taken, either continuously or intermittently, and on how intermittent leave interacts with scheduling and coverage.

Store and corporate schedulers should expect operational impacts as workers exercise intermittent leave or longer continuous absences. Managers may need to adjust shift coverage, temporary staffing, and cross-training plans to limit disruptions. Employees will want clear guidance on eligibility timing, documentation requirements, and how state benefit calculators translate to actual take-home pay under the wage replacement formula and cap.

State online resources and benefit calculators are available to help employees estimate payments and understand eligibility. Target’s Minnesota HR and payroll offices are responsible for aligning internal policies and communication to meet the new legal requirements and to minimize confusion for workers during leave requests and scheduling adjustments.