Sponsor: Human Resources
Title
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Minnesota Paid Leave Implementation
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Recommendation
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1. Authorize the County Manager to finalize negotiations and to execute an agreement with Metropolitan Life Insurance Company, 200 Park Avenue, New York, NY 10166 for the administration of Paid Family Medical Leave insurance, coupled with Short- and Long-Term Disability insurances, with services commencing January 1, 2026, and extending for a term of at least two years.
2. Authorize the County Manager to execute the agreement and execute amendments to the agreement in accordance with the county’s procurement policies and procedures, in a form approved by the County Attorney’s Office.
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Background and Rationale
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In May 2023, the Minnesota Legislature passed a bill to create a Paid Family Medical Leave (PFML) program called Minnesota Paid Leave. Starting January 1, 2026, Minnesota Paid Leave will offer payments and job protections to people who need time away from work for their own health or to care for a family member. Paid Leave helps Minnesotans stay financially stable while caring for their own well-being or being there for the people they love.
Nearly all employers are required to participate in Minnesota Paid Leave, regardless of employer size, revenue or the number of employees. Employers are automatically enrolled into the state’s program. The plan is funded by a payroll tax with a 50% split between employee and employer. The premium tax rate for year 2026 is 0.88%, which translates to $3,024,123 annually based on Ramsey County’s current payroll. In subsequent years, the premium is anticipated to rise to the maximum rate of 1.1% or over $3.8 million.
Employers can apply to opt-out of the state plan by providing an equivalent benefit either through a fully-insured or self-insured plan. Human Resources, in partnership with the County Attorney’s Office and the Purchasing and Contracting Division, evaluated the cooperative solicitation performed by Sourcewell for PFML coverage. Of the qualifying carriers, Human Resources concluded that Metropolitan Life Insurance Company (MetLife) offers the most competitive option with the best employee experience.
MetLife offers a two-year rate guarantee for 0.79%, which translates to over $1.3 million in savings over the next two years. The low rate requires that participants bundle with another fully insured product. The county reviewed its benefit offerings and determined the best solution is to transfer short- and long-term disability insurance to MetLife.
PFML works in tandem with short- and long-term disability insurance. Through MetLife, employees will have a streamlined experience navigating the leave landscape with a sophisticated digital claims portal and one claim number for concurrent PFML and disability claims. In addition, the premiums for short- and long-term disability will decrease compared to 2025 rates with the county’s current carrier.
Human Resources recommends that the county secure a contract with MetLife for PFML, short-term disability, and long-term disability insurances. This is time sensitive, as the deadline to opt-out of the state plan is November 10, 2025, for coverage effective January 1, 2026. To meet the deadline, the recommendation is that the county board authorize the County Manager to execute the final negotiated agreement and execute amendments to the agreement with MetLife in accordance with the county’s procurement policies and procedures, in a form approved by the County Attorney’s Office.
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County Goals (Check those advanced by Action)
☒ Well-being ☒ Prosperity ☒ Opportunity ☒ Accountability
Racial Equity Impact
Expanding access to paid leave with employment protection for all employees fosters a more equitable work environment. Ramsey County recognizes that the state’s platform is new and may create unintended barriers to access, which motivated the search for a vendor with national experience in PFML. By implementing a PFML program that focuses on the end-user, Ramsey County can support employees with balancing the needs of personal wellness, caring for loved ones, and the county’s commitment to serving our residents.
Community Participation Level and Impact
While all residents who are qualifying workers are eligible for the state benefits of MN Paid Leave, this action is strictly operational and internal facing for Ramsey County employees. The residents of Ramsey County do not participate in the evaluation of or decisions regarding the county’s employment policies.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
Starting January 1, 2026, premium deductions for PFML will begin. Ramsey County anticipated a payroll tax of 0.44% (one-half of the state premium of 0.88%). With MetLife as the PFML carrier, Ramsey County’s contribution is the dollar equivalent of 0.395% of wages and the employee contribution is 0.395% of wages. These payroll deductions will be managed in the same method as all other benefit deductions.
Last Previous Action
Ramsey County Labor Relations and all collective bargaining units negotiated a 50/50 premium split during the most recent bargaining cycle:
1. On December 17, 2024, the Ramsey County Board of Commissioners approved the terms of the Collective Bargaining Agreements with International Union of Operating Engineers Local 49 (Resolution B2024-284); Teamsters 320 Correctional Officer IIIs (Resolution B2024-285); Eight American Federation of State, County and Municipal Employees (Resolution B2024-288).
2. On January 14, 2025, the Ramsey County Board of Commissioners approved the terms of the Collective Bargaining Agreements with Technical Employees Association (Resolution B2025-018); American Federation of State, County and Municipal Employees Local 8 Assistant County Attorneys (Resolution B2025-019).
3. On March 11, 2025, the Ramsey County Board of Commissioners approved the terms of the Collective Bargaining Agreement with Law Enforcement Labor Services Local 353 Emergency Communications Shift Supervisors (Resolution B2025-054).
4. On April 1, 2025, the Ramsey County Board of Commissioners approved the terms of the Collective Bargaining Agreements with Teamsters 320 Probation Officers (Resolution B2025-068); Teamsters 320 Correctional Officers I & II (Resolution B2025-069); Teamsters 320 Chief Correctional Officers (Resolution B2025-070).
5. On May 6, 2025, the Ramsey County Board of Commissioners approved the terms of the Collective Bargaining Agreements with Law Enforcement Labor Services Local 349 9-1-1 Telecommunicators and Public Safety Dispatchers (Resolution B2025-087); Ramsey County Supervisors Association (Resolution B2025-088); Law Enforcement Labor Services Local 184 - Deputy Sheriff Commanders (Resolution B2025-095); Ramsey County Deputy Sheriff’s Federation (Resolution B2025-096).
On October 7, 2025, the Ramsey County Board heard a presentation on MN Paid Leave and the recommendation to enter into agreement with MetLife.
Attachments
None.