Does My Family Still Have to Pay Our Nanny During Minnesota Paid Leave?
- Rachel Tepley
- Mar 18
- 5 min read
Disclaimer: The information in this post is provided by Nurturing Nannies for general educational purposes only and does not constitute legal, tax, payroll, or employment advice. Laws and regulations may change or be interpreted differently depending on your situation. Please consult a qualified legal, tax, or payroll advisor before making decisions based on this content.
Minnesota Paid Leave went into effect on January 1, 2026, and it is one of the most common things families ask us about right now.
The number one question we hear is this: if our Nanny takes paid leave, does that money come out of our pocket?
The short answer is no. And understanding why can give a lot of families real peace of mind.
What Minnesota Paid Leave Actually Is
Minnesota Paid Leave is a state-run program that provides job protection and partial wage replacement to employees who need time away from work for qualifying reasons including their own serious health condition, bonding with a new child, caring for a family member, or addressing a safety situation like domestic violence.
The program is funded through premiums on employee wages, split between the employer and employees. Think of it similarly to how unemployment insurance works.
So Who Pays Your Nanny When They Take Leave?
The state does.
When an employee takes leave covered by the program, the State of Minnesota pays the employee directly. That payment does not come from you as the family. Your Nanny applies through the state portal, the state reviews and approves the claim, and the state issues the payments.
Most individuals will receive between 55% and 90% of their regular wages while on leave, depending on income level. The maximum weekly benefit when the program launched was $1,423 per week.
So while your Nanny is on leave, you are not cutting them a paycheck. The state is handling that.
What Are Your Responsibilities as the Employer?
Even though the state pays your Nanny during leave, you do have responsibilities as the household employer. Here is what that looks like in plain language:
Premiums: For 2026, the premium rate is 0.88% of an employee's wages. Employers can collect up to 0.44% from employees, or they can choose to cover more. As a household with fewer than 30 employees, you qualify for a reduced rate of 0.66%.
First Payments: The first quarterly premium payments are due April 30, 2026, covering wages paid from January 1 through March 31, 2026.
Job Protection: If an employee has worked for more than 90 days, they must be returned to their original job or an equivalent position at the end of leave. You cannot let your Nanny go simply because they took approved leave.
You Cannot Deny a Qualified Application: Your role is not to approve or deny leave. Your Nanny applies directly through the state. You cannot interfere with or retaliate against them for using it.
Can Your Nanny Top Up Her Pay?
Yes, optionally. Employees have the option to supplement their Paid Leave benefits with any available paid time off, vacation, earned sick and safe time, or in certain qualifying cases, short-term disability to achieve their full wage.
However, employers cannot require employees to use their accrued paid time off, vacation, or earned sick and safe time before or during their paid leave. That is the employee's choice to make, not yours.
What About Finding Coverage While Your Nanny Is Out?
This is where working with an employment-based agency like Nurturing Nannies makes a real difference.
If your Nanny takes Minnesota Paid Leave, we will work to locate a backup Nannie for your family at no additional placement fee, so your household stays covered. You would be responsible for the backup Nannie's hourly rate, but you will not be left scrambling on your own.
Families who hired their Nanny independently are fully responsible for finding and vetting their own backup coverage during leave. That is one of the most stressful parts of private hiring that most families do not think about until they are in the middle of it.
What If You Are Employing Your Nanny Independently?
If you found your own Nanny and are managing the employment side yourself, here is what you need to have in place:
Payroll Setup: A payroll provider like Poppins Payroll can handle premium deductions, remittance, and quarterly reporting for you. Use promo code NURTURING for two months free, then $49 per month after that.
An Employer Account: You need to be registered with Minnesota's unemployment insurance system, which is the same system used for Paid Leave reporting.
Employee Notice: You are required to provide written notice to your Nanny about their rights under the Paid Leave program.
For a full breakdown of your obligations as a household employer, visit the Poppins Payroll Minnesota resource guide
What If I Am the One Taking Leave and I Do Not Need My Nanny While I Am Home?
This is one of the most common situations families find themselves in and it is also one of the most misunderstood.
If you are a parent taking Minnesota Paid Leave, perhaps for the birth of a new baby, and you no longer need your nanny to work during that time, here is what you need to know.
You Likely Cannot Simply Stop Using Your Nanny and Assume the Position No Longer Exists.
If your nanny has been with you for more than 90 days, then they have job protection under Minnesota Paid Leave law. That means you are required to reinstate them to their original position or an equivalent one when your leave ends. Eliminating the role while you are on leave and then claiming you no longer need them when you return could be considered retaliation, which carries real legal consequences.
Whether You Have to Pay Your Nannie While You Are on Leave and Not Using Them Depends on The Contract.
If your nanny's work agreement includes a guaranteed hours clause, you are very likely still obligated to pay those guaranteed hours even if they are not working. If there is no guaranteed hours clause, the situation is more nuanced and depends on the specific language in your agreement. Psst... the industry standard is to pay your nannie guaranteed hours, please don't look at this as a way out of that. Your nannie depends on their paycheck being consistent, they have bills to pay that don't change because your schedule does.
What Families in This Situation Typically Do:
- Give the nanny paid time off during the leave period if it is within the terms of the work agreement
- Temporarily reduce hours by mutual agreement, documented in writing
- Have an honest conversation with the nanny about the situation and come to a written arrangement that works for both parties
- Ask their friends if anyone is interested in sharing their nanny during this time, if and only with the nannies permission and willingness to do so
This is genuinely one of those situations where we strongly recommend speaking with a household employment attorney or a payroll provider like Poppins Payroll before making any decisions. Getting it wrong can be costly.
If your nanny is employed through Nurturing Nannies, this is something we help navigate for you.
The Bottom Line
Minnesota Paid Leave does not mean your family writes a bigger check. The state pays your Nanny directly during approved leave. Your job as the employer is to pay into the program through premiums, keep their job protected, and have a backup care plan ready.
If you have questions about how this applies to your specific situation, we always recommend speaking with a qualified payroll or employment advisor. And if you want to learn more about how Nurturing Nannies handles all of this on your behalf, we would love to connect.
You'll notice we spell it Nannie. It's personal and so is everything we do.
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