Les employeurs du Massachusetts pourraient devoir mettre à jour leurs politiques PFML en 2024

In November 2023, the Massachusetts Department of Family and Medical Leave (DFML) announced changes to its Paid Family and Medical Leave (PFML) program. With these changes, Massachusetts employers may need to revise their policies and practices regarding supplementing or “topping off” PFML benefits with employer-provided, accrued paid leave. Additionally, employers should expect their PFML contribution rates to increase in 2024.

PFML Overview

La loi PFML du Massachusetts accorde aux personnes couvertes un congé familial et médical rémunéré comme suit :

• Jusqu'à 20 semaines de congé médical rémunéré par année d'avantages sociaux s'ils souffrent d'un problème de santé grave qui les empêche de travailler.
• Jusqu'à 12 semaines de congé familial rémunéré au cours d'une année de prestations pour la naissance, l'adoption ou le placement en famille d'accueil d'un enfant, pour s'occuper d'un membre de la famille atteint d'une maladie grave, ou en raison d'une situation d'urgence admissible découlant du fait qu'un membre de la famille est en service actif ou a été informé d'une convocation imminente au service actif dans les forces armées.
• Jusqu'à 26 semaines de congé familial rémunéré par année d'avantages sociaux pour s'occuper d'un membre de la famille qui est un militaire couvert et qui souffre d'un problème de santé grave.

Employees can take up to 26 total weeks of paid family and medical leave in a single benefit year. A covered individual’s average weekly earnings will determine their benefit amount, and weekly benefits are capped by the DFML. In 2024, the maximum weekly benefit is $1,149.90.

Previous Rule on “Topping Off” PFML Benefits

Before the November 2023 change, employees generally could not supplement or “top off” their PFML benefits with employer-provided, accrued benefits, like paid time off (PTO). This rule was met with confusion and frustration among employers and employees as it meant that an employee could not use PTO (such as vacation or sick time) to make up the difference between their regular pay and the weekly PFML cap. There were some exceptions for employer-provided benefits through exempt private plans.

New Rule on “Topping Off” PFML Benefits

Now, employees can supplement or “top off” their PFML benefits with any employer-provided, accrued PTO. Specifically, an employee can supplement the weekly capped PFML benefits with their PTO, up to a total amount equal to the employee’s individual average weekly wage. Calculated by the DFML, the average weekly wage is the average amount the employee earned per week in the two quarters in which the employee earned the most (or the one quarter, if the employee only worked in two or fewer quarters).

Employers should not report any topping-off of benefits to the DFML. However, employers must tell employees that they have the option to use their accrued PTO to supplement their PFML benefits in accordance with the above-described procedure. Ultimately, employers cannot approve or deny an employee’s decision to top off PFML benefits. The decision whether to engage in “topping off” is solely in the employee’s discretion, according to the DFML.

PFML Benefit and Contribution Rates Increasing in 2024

Effective January 1, 2024, Massachusetts PFML benefit and contribution rates increased. First, the maximum weekly employee benefit amount is increasing from $1,129.82 to $1,149.90. Next, for employers with more than 24 employees, the contribution rate will increase from 0.63% to 0.88% of eligible wages. For employers with 24 or fewer employees, the contribution rate will increase from 0.318% to 0.46% of eligible wages. 

Employer Takeaways

Given this PTO “topping off” change, employers should revisit their written PFML and PTO policies to ensure clarity regarding supplementing PFML benefits with PTO or other employer-provided benefits (such as short term disability benefits). Employers should also be sure that human resources employees are informed of this update. Employers that use third parties to administer their PFML policies should consult with these service providers to account for this update.

The DFML FAQ for topping off issues can be found here.