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
マサチューセッツ州PFML法は、対象となる個人に対し、以下の通り有給家族・医療休暇を付与する：
- 福利厚生年度において、重大な健康上の問題により就労不能となった場合、最大20週間の有給医療休暇を取得できます。
- 給付年度において、最大12週間の有給家族休暇を取得できます。これは、子供の出生、養子縁組、または里親委託に関連する場合、重篤な健康状態にある家族成員の介護を行う場合、または家族成員が軍隊において現役任務に就いている、もしくは現役任務への召集が差し迫っている旨の通知を受けたことに起因する適格な緊急事態が生じた場合が対象となります。
- 給付年度において、重大な健康状態にある被保険者である家族成員の介護のために、最大26週間の有給家族休暇を取得できます。
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.
