Critical Updates to the Massachusetts Paid Family and Medical Leave Law

​Recent amendments to the Massachusetts Paid Family and Medical Leave law (PFML) now allow employees to supplement their weekly PFML benefit amount with their accrued paid leave (vacation, sick time, paid time off, etc.). PFML contribution rates and weekly benefits are also set to change.

Using Accrued Paid Leave

Beginning on Nov. 1, all eligible employees can top off their PFML wage replacement benefits with their available accrued paid leave to receive up to 100 percent of wage replacement during their PFML-qualified leave.

Previously, employers that offered PFML through a private plan had the option to allow their employees to top off private plan benefits with accrued paid leave.

Employees who received PFML benefits from the state's program, however, were unable to use accrued paid leave during any leave period in which they received state PFML benefits. Rather, use of accrued paid leave was permitted only during the seven-day waiting period when no PFML benefits were available, or in one block of time at the beginning or end of the PFML leave.

The Massachusetts legislature, following the lead from other states' leave laws, recognized that during these critical periods, employees should be able to use PFML and their accrued leave balances to fully replace the income they otherwise would have received if not on leave. Employees will now have the discretion to use their accrued paid leave to top off, or save their paid time off for a later time, and employers must provide employees with this option.

The Department of Paid Family and Medical Leave (DPFML) is expected to issue guidance for employers tasked with calculating the difference between the PFML weekly benefit and the accrued paid leave, and timely issuing payment.

2024 Contribution Rates and Weekly Benefits

The DPFML released new contribution rates and weekly benefits, effective Jan. 1, 2024.

For employers with 25 or more employees, the contribution rate will increase from 0.68 percent to 0.88 percent of eligible wages. This contribution is divided between the employee's payroll or wage withholdings and an employer contribution. Up to 100 percent of the family leave contribution can be withheld from the employee's individual's wages (0.18 percent of eligible wages).

In addition, up to 40 percent of the medical leave contribution can be withheld from an employee's wages (0.28 percent of eligible wages). Employers are responsible for contributing the remaining 60 percent (0.42 percent of eligible wages).

Employers with fewer than 25 employees must remit an effective contribution rate of 0.46 percent of eligible wages. This contribution rate is less because small employers are not required to pay the employer share of the medical leave contribution. Small employers are still responsible for collecting and remitting the contributions from the employee's wages, but are under no obligation to contribute themselves.  

Also, effective Jan. 1, 2024, the maximum weekly benefit will be $1,149.90, an increase from $1,129.82.

Alice Kokodis is an attorney with Littler in Boston. © 2023. All rights reserved. Reprinted with permission.