Introduction
Recent amendments to the Massachusetts Paid Family and Medical Leave law (PFML) have brought significant changes to how employees can supplement their benefits and alterations to contribution rates and weekly benefits. These amendments, effective November 1, introduce a crucial shift in the use of accrued paid leave and impact both employers and employees.
Using Accrued Paid Leave
One noteworthy change allows all eligible employees, regardless of whether they receive PFML benefits from a private plan or the state program, to supplement their weekly PFML benefit amount with accrued paid leave. This means that employees now have the flexibility to use their accrued paid leave during PFML-qualified leave periods, offering them the opportunity to receive up to 100 percent of wage replacement.
Previously, the use of accrued paid leave during PFML leave periods was restricted for those receiving benefits from the state’s program. The amendments recognize the importance of empowering employees to fully replace their income during critical periods of leave. The Department of Paid Family and Medical Leave (DPFML) is expected to provide guidance to employers on calculating the difference between PFML weekly benefits and accrued paid leave, ensuring timely payments.
2024 Contribution Rates and Weekly Benefits
Effective January 1, 2024, the DPFML has announced changes to contribution rates and weekly benefits, impacting both large and small employers.
Contribution Rates for Employers with 25 or More Employees
For employers with 25 or more employees, the contribution rate will increase from 0.68 percent to 0.88 percent of eligible wages. This increase is divided between employee payroll or wage withholdings and an employer contribution. Notably, up to 100 percent of the family leave contribution can be withheld from the employee’s wages, while employers are responsible for contributing the remaining 60 percent of the medical leave contribution.
Contribution Rates for Employers with Fewer than 25 Employees
Employers with fewer than 25 employees will see a lower contribution rate of 0.46 percent of eligible wages, effective January 1, 2024. This reduced rate is due to small employers being exempt from paying the employer share of the medical leave contribution. While small employers are responsible for collecting and remitting contributions from employee wages, they are not obligated to contribute themselves.
Weekly Benefits Increase
Simultaneously, the maximum weekly benefit under PFML will experience an increase from $1,129.82 to $1,149.90, effective January 1, 2024. This adjustment aims to provide enhanced financial support for employees on PFML.
In conclusion, the recent amendments to the Massachusetts PFML law bring about crucial changes that enhance the flexibility and benefits available to employees during periods of family and medical leave. Employers must be proactive in understanding and implementing these changes to ensure compliance with the updated regulations.
Disclaimer: This article provides general guidance and information. HR managers should consult with legal experts to ensure compliance with federal, state, and local laws when implementing these strategies.