In November 2023, the Massachusetts Department of Family and Medical Leave (DFML) announced changes to the Paid Family and Medical Leave (PFML) program. These changes may require Massachusetts employers to modify their policies and practices regarding supplementing or “top-up” her PFML benefits with accrued paid leave provided by the employer. Additionally, her employer should expect her PFML contribution rate to increase in 2024.
PFML overview
The Massachusetts PFML law provides paid family and medical leave to eligible individuals as follows:
- If you are unable to work due to a serious health condition, you may receive up to 20 weeks of paid medical leave during the benefit year.
- In connection with the birth, adoption, or foster care placement of a child, for up to 12 weeks within a benefit year to care for a family member with a serious health condition, or for qualifying exigencies arising from that fact. You can take paid family leave. A family member is on active duty in the military or has been notified of an impending call to active duty in the military.
- You can take up to 26 weeks of paid family leave in a benefit year to care for a covered military family member with a serious health condition.
Employees may receive up to a total of 26 weeks of paid family and medical leave in a benefit year. The eligible individual’s average weekly income determines the benefit amount, and the weekly benefit amount is limited by her DFML. The maximum weekly benefit in 2024 is $1,149.90.
Previous rules regarding “top-ups” of PFML benefits
Prior to the November 2023 changes, employees generally could not supplement or “top-up” their PFML benefits with accrued employer-provided benefits, such as paid time off (PTO). This rule means that an employee cannot use paid time off (such as vacation or sick leave) to make up the difference between her regular salary and her weekly PFML limit, so there is no dispute between the employer and the employee. Confusion and frustration arose. There were some exceptions to benefits provided by employers through exempt private plans.
New rules regarding “top-ups” of PFML benefits
Employees can now use accrued paid time off provided by their employer to top up or “top up” their PFML benefits. Specifically, an employee may supplement her PFML benefits, subject to weekly limits, with PTO up to a total amount equal to the employee’s individual average weekly salary. The average weekly wage calculated by DFML is calculated by the employee in her two quarters in which she earned the most (or in her one quarter if the employee has worked less than two quarters). This is the average amount earned.
Employers should not report benefit top-ups to DFML. However, the employer should inform the employee that she has the option of using accrued paid leave to supplement her PFML benefits by following the steps above. Ultimately, an employer cannot approve or deny an employee’s decision to top up PFML benefits. DFML says the decision to perform “topping” is solely at the employee’s discretion.
PFML benefits and contribution rates increase in 2024
Effective January 1, 2024, Massachusetts’ PFML benefits and contribution rates have increased. First, the maximum weekly employee benefit amount will increase from $1,129.82 to $1,149.90. Second, for employers with more than 24 employees, the contribution rate increases from 0.63% to 0.88% of eligible wages. For employers with fewer than 24 employees, the contribution rate increases from 0.318% of eligible wages to 0.46%.
Employer points
Given this PTO “top-up” change, employers should seek documentation to provide clarity about supplementing PFML benefits with PTO or other employer-provided benefits (such as short-term disability benefits). PFML and PTO policies should be reconsidered. Employers should also ensure that human resources personnel are kept up to date with this information. Employers who use third parties to manage their PFML policies should consult their providers of these services to explain this update.
See the DFML FAQ to resolve your issue. here.
