On June 28, 2019 Massachusetts passed the Massachusetts Paid Family and Medical Leave (“PFML”) law which goes into effect in 2021.
Below is a timeline and list of employer responsibilities to prepare for the upcoming law.
Notice Requirements: MAY 30, 2019
All employers must provide written notice to employees of their rights under the PFML by May 30, 2019. The notice may be in hardcopy or electronic. Employers must collect sign acknowledgment receipts from employees.
After July 1, 2019, employer must provide all new employees with the notice within 30 days of start date.
Employers are also required to display the PMFL workplace poster in a highly visible location that explains the benefits. The approved poster is available at: https://www.mass.gov/files/documents/2019/03/21/20190321_DFML%20Notice_FINAL.pdf
Payroll Tax Deductions: JULY 1, 2019
Individuals on PFML will receive a wage replacement from a newly established Family and Employment Security Trust Fund. Contributions to PFML begin on July 1, 2019. The Family and Employment Security Trust Fund will be funded by a payroll tax on employers at an initial contribution rate of .63 percent of the employee’s wages as follows:
Medical leave: .52% payroll deduction. Employer may deduct up to forty percent (40%) of the contribution from the employee’s wages. Employer with less than 25 employees are exempt from paying the employer portion of the medical leave contribution.
Family Leave: .11% payroll deduction. Employer may deduct up to one hundred percent (100%) of the contribution from the employee’s wages.
Leave Policies: Before January 1, 2021
Employees should amend their handbook polices to reflect the new leave benefits provided under the PFML.
- Up to 12 weeks of paid family leave per benefit year
- Up to 20 weeks of paid medical leave for the worker’s own serious health condition
- Up to 26 weeks of paid family leave per benefit year to care for a family member who is a covered service member.