Massachusetts: Updates to PFML

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Quick Look

  • Amendments to the Massachusetts Paid Family and Medical Leave law (PFML) now allow both private plan and state plan employees to “top off” their wage replacement benefits with available accrued paid leave up to 100% of wage replacement.
  • Employer and employee contribution rates have been updated for 2024.
  • The maximum weekly benefit amount will be $1,149.90, effective January 1, 2024.

Discussion

Effective November 1, 2023, amendments to the Massachusetts Paid Family and Medical Leave law (PFML) now allow employees of both private plans and state plans to “top off” their wage replacement benefits with available accrued paid leave up to 100% of wage replacement. Previously, only private plan employers had the option to allow employees to “top off” their wage replacement benefits with accrued paid leave. State plan employers were restricted in their ability to allow employees to use accrued time off to supplement their leave benefits. Employees must now be provided with the choice to “top off” or save their paid leave. Additional guidance is expected from the Department of Paid Family and Medical leave to help employers with timely payment and calculations.

The 2024 contribution rates and weekly benefits have also been issued. Employers with 25 or more employees will have a 0.88% contribution rate of eligible wages. The contribution is divided between the employee and employer share. Employers with less than 25 employees will have a contribution rate of 0.46%. These small employers do not have to contribute an employer’s share. The maximum weekly benefit amount will also be $1,149.90, effective January 1, 2024.

Action Items

  1. Review the updated requirements here.
  2. Revise paid leave policies and payroll processes.
  3. Have appropriate personnel trained on the updated requirements.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2023 ManagEase