Massachusetts PFML Updates for 2024

The Massachusetts Department of Family and Medical Leave (the “Department”) recently announced several updates in connection with the Massachusetts Paid Family and Medical Leave (“MA PFML”) for 2024, outlined in the table below.

MA PFML Contribution Rate

For employers with 25 or more covered individuals, this contribution can be split between covered individuals’ payroll or wage withholdings and an employer contribution.

For medical leave, up to 40% of the contribution can be withheld from a covered individual's wages (0.28% of eligible wages). Employers are responsible for contributing the remaining 60% (0.42% of eligible wages).

For family leave, up to 100% of the family leave contribution can be withheld from a covered individual's wages (0.18% of eligible wages).

The diagram below from the MA PFML webpage outlines the 2024 MA PFML contribution rates for employers with 25 or more covered individuals:

Employers with 24 or fewer covered individuals are not required, but may choose, to pay the employer share of the medical leave contribution.

For medical leave, up to 100% of the medical leave contribution can be withheld from a covered individual's wages (0.28% of eligible wages).

For family leave, up to 100% of the family leave contribution can be withheld from a covered individual's wages (0.18% of eligible wages).

The diagram below from the MA PFML webpage outlines the 2024 MA PFML contribution rates for employers with 24 or fewer covered individuals:

MA PFML Refresher

MA PFML, enacted in 2018 and fully implemented in 2021, provides paid family and medical leave benefits for covered individuals working in Massachusetts, including current full-time and part-time employees, certain former employees, as well as seasonal and contractor employees. Covered individuals are eligible for up to 12 weeks for family leave and 20 weeks for medical leave (with a combined maximum of 26 weeks in any year).

Qualifying MA PFML reasons include the following:

• caring for one’s own serious health condition (up to 20 weeks of paid medical leave);
• bonding with a new child during the first 12 months after birth, adoption, or placement (up to 12 weeks of paid family leave);
• caring for a family member^[1] with a serious health condition (up to 12 weeks of paid family leave);
• caring for a family member who was injured serving in the armed forces (up to 26 weeks of paid family leave); and
• managing affairs while a family member is on active duty (up to 12 weeks of paid family leave).

Since MA PFML is job-protected leave, employers are prohibited from retaliating against employees for their use of MA PFML. Employers are also required to continue providing and contributing to employees’ health coverage while on MA PFML.

Employers must post and distribute certain MA PFML information to their employees, including new hires, such as a workplace poster, an employee notice, and a rate sheet — sample templates of which can be accessed here.

Employers with 25 or more employees working in Massachusetts^[2] are required to contribute to the MA PFML program. Employee contributions are capped at the Social Security taxable maximum, which is currently set at $168,600 for 2024. MA PFML benefits received are based on a percentage of an employee’s typical wages, up to a maximum amount set by the Massachusetts Department of Family and Medical Leave ($1,149.90 per week for 2024).

Finally, employers may opt out of the MA PFML contribution requirements by applying for an exemption from the state as long as their own paid family and medical leave program under a private plan is at least as generous as the MA PFML program with the same rights and protections.

Clarification of Health Benefits Maintenance During MA PFML Leave

Click here for a previous Risk Strategies article detailing a clarification regarding the health benefits maintenance provision with MA PFML, requiring employers to maintain health benefits during their employees’ MA PFML period.

Next Steps for Employers:

1. Update MA PFML policies and payroll systems to reflect these changes in advance of January 1, 2024.
2. Employers with MA PFML private plans may wish to assess whether the private plan option still is the best option for MA PFML.

For those employers interested in learning more about private plan options, or have additional questions regarding the MA PFML program, the Risk Strategies Absence Management team is here to help.

[1] Family member generally means spouse, domestic partner, children (including stepchildren or children of a domestic partner), parents, parents of spouse/domestic partner, grandchildren, grandparents, and siblings.