PFMLA Notification and Contribution Deadlines Extended by 3 Months

By Catherine Reuben, David Wilson, Mike Derderian, Peter Moser   June 14, 2019

On June 14, 2019, the Massachusetts Department of Family and Medical Leave (“DFML”) posted a new update confirming that the Massachusetts legislature and Governor Charlie Baker have enacted legislation to delay by three months (1) the date on which employers must notify their workforce of their rights and obligations under the Paid Family Medical Leave Act (“PFMLA”), and (2) the start date for employer and employee contributions to the PFML program. The workforce notification deadline is now September 30, 2019, and the contribution start date is now October 1, 2019.

In addition, to offset the shorter period for collections that will result from the three-month delay, the contribution rate will be increased from .63% to .75%. Employers that offer paid leave benefits that are at least as generous as those required under the PFMLA will also have until December 20, 2019 to apply for an exemption to the contribution obligation.

The new posting, titled Notice to Massachusetts Employers about PFML delay, is accessible at https://www.mass.gov/news/notice-to-massachusetts-employers-about-pfml-delay.

Uncertainty surrounding key aspects of the law, such as whether deductions will be taken pre- or post-tax and whether future benefits received will be taxable, had prompted advocacy groups representing businesses and employees alike to request the three-month delay. The Baker Administration is awaiting guidance from the IRS on this issue, which has not yet been resolved.

FOR MORE INFORMATION

We expect more updates to come. For additional info about the PFMLA or for compliance help, please contact any member of the HRW PFMLA team:
• Cathy Reuben: creuben@hrwlawyers.com / 617-348-4316
• Dave Wilson: dwilson@hrwlawyers.com / 617-348-4314
• Pete Moser: pmoser@hrwlawyers.com / 617-348-4323
• Mike Birch: mbirch@hrwlawyers.com / 617-348-4359
• Charlotte Petilla: cpetilla@hrwlawyers.com / 617-348-4353
• Ari Kristan: akristan@hrwlawyers.com / 617-348-4365
• Mark Macchi: mmacchi@hrwlawyers.com / 617-348-4331
• Liz Monnin-Browder: emonnin-browder@hrwlawyers.com / 617-348-4349

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