Minnesota paid leave on track for Jan. 1; early applications open and 0.88% payroll tax set

📌 Key Facts

Minnesota’s paid family and medical leave (PFML) system is on track to launch Jan. 1 and is already accepting early applications for parental bonding leave.
The payroll tax to fund PFML is set at 0.88%; employers may pass about half (~0.44%) to employees or cover the full amount themselves.
The program is expected to serve about 130,000 users in year one, with estimated costs of $1.6 billion and administration by roughly 400 state employees.
DEED will use layered fraud and integrity controls, including LoginMN account verification requiring a government ID and a live selfie to deter identity theft and AI-driven impersonation, integration of electronic health records and provider certification for claims, and leveraging unemployment insurance data to flag and lock suspected compromised accounts.
A dedicated data-analytics team will monitor system-wide trends, the state will conduct random audits, and a program integrity unit will track linked claims and review complex family or multiple‑caregiver/intermittent leave situations.
Program architect Greg Norfleet says Minnesota benefits from being the 13th state to launch and set a higher initial tax rate to support long-term solvency.
By contrast, Washington state’s paid leave program has experienced staffing and payment delays and is projecting deficits (about $346 million by 2029 and nearly $1 billion by 2030) as tax-rate caps trend toward 1.2% by 2027.

Posts on X highlight widespread skepticism about the program's fraud controls, citing Minnesota's history of massive scandals like Feeding Our Future, where hundreds of millions were lost, arguing that similar vulnerabilities could lead to abuse despite the announced safeguards.
Many X users express concerns that the 0.88% payroll tax will disproportionately burden small businesses and low-wage workers, potentially leading to reduced hiring or wage stagnation, a perspective not deeply explored in mainstream reports.
Social media discussions often point to political criticisms of the Walz administration, with users claiming the program is another example of fiscal mismanagement following budget overruns in previous state initiatives, framing it as a risk to taxpayers.
X posts raise alarms about insufficient oversight for caregiver claims, suggesting that without robust verification beyond self-reporting and audits, the program could enable fraudulent leaves, drawing from testimonies in legislative hearings.
Users on X discuss potential demographic impacts, noting that immigrant communities involved in past fraud cases might face heightened scrutiny, while the program could benefit diverse working families but risks exacerbating inequalities if fraud erodes public trust.

Based on 3 sources

Twin Cities by Alex Derosier November 23, 2025

New information:

DEED says Minnesota’s PFML system is on track and is already accepting early applications for parental bonding leave.
Minnesota’s payroll tax is set at 0.88% (employers may charge employees up to about half, ~0.44%, or cover all).
Program architect Greg Norfleet says Minnesota benefits from being the 13th state to launch and started with a higher rate to support long‑term solvency.
Comparative context: Washington state’s paid leave has faced staffing/payment delays and projected deficits ($346M by 2029; nearly $1B by 2030) under tax‑rate caps trending to 1.2% by 2027.

Twin Cities by Alex Derosier November 20, 2025

New information:

DEED detailed layered fraud controls: LoginMN account verification requiring a government ID and a live selfie to deter identity theft and AI-driven impersonation.
Minnesota will be the first state to integrate electronic health records into its paid leave verification process; all claims must be certified by a health care provider or appropriate professional.
DEED will leverage unemployment insurance data (with a strong fraud-prevention track record per a 2022 Legislative Auditor report) to flag and lock suspected compromised accounts.
A data‑analytics team will monitor system-wide trends; the state will conduct random audits of claims.
Program scale update: about 130,000 expected users in year one at an estimated cost of $1.6 billion, administered by roughly 400 state employees.
Republican legislators pressed on potential abuse via multiple caregivers and intermittent leave; statute sets no hard cap, but DEED said complex family situations will be reviewed and claim linkages tracked by a program integrity unit.
Quotes: DEED Deputy Commissioner Evan Rowe on 'overlapping controls' and MNIT Deputy Commissioner Jon Eichten on selfies to prevent AI identity scams.

Minnesota Reformer by Michelle Griffith November 18, 2025