Minnesota Family and MedicalBenefit Insurance Program
Minnesota Family and Medical Benefit Insurance Program, Equivalent Plan Self-Insurance Surety Bond
Minnesota now requires employers offering a private or self-insured equivalent paid family and medical leave plan to post a surety bond. The Minnesota Family and Medical Benefit Insurance Program Equivalent Plan Self-Insurance Surety Bond guarantees that employers will fulfill all paid leave benefit obligations required by law. SuretyBondsOnline.com and Hard2PlaceBonds.com are your specialists for this unique bond, dedicated to simplifying the process and ensuring full compliance for Minnesota employers.
What Is the Surety Bond for Paid Family Leave in Minnesota?
This bond is required for employers who wish to self-insure their paid family and medical leave benefits, instead of participating in the state plan. Its main purpose:
- Guarantees eligible employees receive paid leave benefits by law, even if their employer encounters financial difficulties or defaults.
- Ensures the employer’s self-insured plan provides the same (or better) benefits and job protections as Minnesota’s public plan.
- Protects the state from financial loss; the Minnesota Department of Employment and Economic Development (DEED) is the obligee.
How Long Is Paid Family Leave Bonding in Minnesota?
- Employees can receive up to 12 weeks of paid medical leave, 12 weeks of paid family leave, or up to 20 weeks total if they qualify for both within a year.
- "Bonding" refers to leave for bonding with a new child (by birth, adoption, or foster placement); other types include care for family, medical reasons, military or safety leave, all covered under the same law.
What Is the Difference Between PFL Bonding and PFL Care?
- PFL Bonding: Leave for bonding with a new child (birth, adoption, foster).
- PFL Care: Leave for caring for a family member with a serious health condition.
- Both are covered under the Minnesota paid leave law and are protected by the employer’s surety bond.
Is a Surety Bond an Insurance Product?
A surety bond is different from typical insurance. It is a three-party agreement involving:
- Principal: The employer (who must post the bond)
- Obligee: The State of Minnesota (DEED)
- Surety: The bonding company guarantees repayment if the employer defaults
If the employer fails to meet its legal obligations to pay employee benefits, the surety pays the State, and the employer must reimburse the surety.
What Is the Minnesota Paid Leave Surety Bond For?
- Guarantees employer payment: The bond ensures employees receive their statutory benefits if the employer defaults.
- Financial backstop: Protects state funds and minimizes risk to employees.
- Compliance: Required to secure approval for a private, self-insured plan with DEED.
- Obligee: The bond runs to the Minnesota Department of Employment and Economic Development.
Bond Amount and Calculation
- The required bond amount is equal to the employer’s annual premium that would have been paid to the state plan.
- Use the Minnesota Paid Leave calculator to determine your exact obligation.
| Key Bond Facts | Details |
|---|---|
| Bond Name | Minnesota Family and Medical Benefit Insurance Program, Equivalent Plan SelfInsurance Surety Bond |
| Obligee | Minnesota Department of Employment and Economic Development (DEED) |
| Bond Amount | Equal to what you’d pay in annual state premiums (use official calculator) |
| Term | 1 year, renewable |
| Required for | Employers with private/self-insured paid family leave plans |
| Application Needs | Application, company financials, personal financials of owners and spouses |
| Bond Protects | Employees and the state, guarantees benefit payments |
Who Needs This Bond?
- Any Minnesota employer opting out of the state paid leave plan in favor of a private insurance or self-insured equivalent must obtain this bond.
- It is not required for employers solely participating in the state public plan.
How to Apply Through SuretyBondsOnline.com
SuretyBondsOnline.com and Hard2PlaceBonds.com are authoritative, experienced leaders in Minnesota paid leave surety bonds. Here’s why Minnesota employers trust us:
- Focus on difficult-to-place and specialty financial guarantee bonds
- Fast, expert guidance—get quotes and support from experienced professionals
- Dedicated to the Minnesota Family and Medical Benefit Insurance Program’s requirements
- Seamless process from application to bond delivery
Ready to get your Minnesota Paid Family and Medical Leave Surety Bond? Contact SuretyBondsOnline.com or Hard2PlaceBonds.com—avoid delays, ensure compliance, and safeguard your team.
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