By Catherine Reuben, David Wilson, Kathleen Berney, Alicia Ward, Julia Russo October 23, 2023
We have important news to share regarding the Massachusetts Paid Family and Medical Leave (PFML):
1. Beginning in January 2024, the maximum weekly benefit that employees are eligible to receive will increase to $1,149. In addition, effective January 1, 2024, the total contribution rate for employers with 25 or more covered individuals will increase from 0.63% to 0.88% of eligible wages. For employers with fewer than 25 covered individuals, the total contribution rate will increase from 0.318% to 0.46% of eligible wages.
2. Effective November 1, 2023, employees receiving PFML benefits may supplement (or “top off” those benefits with employer-provided sick time, vacation time, PTO or other accrued paid leave.
Topping Off Now Permitted
Effective November 1, 2023, employees receiving benefits from the Massachusetts Department of Family and Medical Leave (DFML) may supplement (or “top off”) those benefits with any available accrued paid leave benefits (e.g., sick time, vacation, PTO, personal time, etc.) or other paid leave available under employer policies, including under collective bargaining agreements.
In the past, except for the first week of leave (which is unpaid), employees were not permitted to use their accrued paid leave benefits while simultaneously receiving benefits from the DFML. Only employers with private plans could permit such “topping off”. Due to a recent legislative change, employees can now use accrued paid time to supplement PFML benefits, provided that the total amount they receive each week does not exceed the employee’s average weekly wage. This change will apply to applications filed with the DFML on or after November 1, 2023, including applications filed retroactively for a leave that began before that date.
The DFML is clear that employers will be responsible for monitoring and ensuring that the combined weekly sum of employer-provided paid leave benefits and PFML benefits does not exceed the employee’s individual average weekly wage. For example, if an employee continues to use full days of accrued paid leave benefits after the first week of the leave of absence, and the employee later receives payments from the DFML for those same days, the employee will receive more paid benefits than their average weekly wage. If that happens, the employer, rather than the DFML, will be responsible for recouping the excess amount paid to the employee.
For additional information, see the FAQ published by the DFML for employers.
HRW will be discussing this development in more detail during our Roundtable on November 14, 2023. Click here to register. In the meantime, employers should review their policies and procedures and provide their workforce with information about this new “top off” option in addition to the new contribution rates. As a reminder, employers must provide current employees with information on the new contribution rate 30 days in advance (i.e., December 2, 2023) of the rate change.
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