The Massachusetts Executive Office of Labor and Workforce Development (EOLWD) recently released draft regulations for the new Paid Family and Medical Leave
(PFML) program, laying out how it proposes to implement the law, which begins phasing in this July and will be fully effective in 2021. This new benefit program was established last year as part of the so-called Grand Bargain between advocacy groups and the business community. The newly established Department of Family and Medical Leave (the “Department”) will oversee the administration of PFML.
EOLWD is currently accepting comments on these draft regulations. This is an important opportunity for ABC and our member firms to be heard on any concerns or issues with the draft. PFML will impact almost every
Massachusetts business, therefore we encourage all members to review the regulations and share your concerns with ABC Director of Public Affairs, Rob McGovern at [email protected]
or (781) 273 – 0123 so we can use our collective voice to address any issues.
Click the "Read More" button for an overview of the regulations.
Overview of Draft Regulations
The Paid Family and Medical Leave (PFML) program provides employees with the legal right to take paid leave for family or medical reasons. Almost every business will be impacted by this law, which requires any business that employs one or more individuals to submit contributions on behalf of their employees.
To fund this paid leave, employers must remit 0.63% of each employee’s annual income (the “total contribution rate”) to the Department, apportioned between family and medical leave (for example, the medical leave contribution may account for 82.5% of the total contribution rate and the family leave contribution may account for the remaining 17.5% of the total contribution rate).
For family leave, employers are not required to pay any of the employee’s apportioned contribution rate. For medical leave, employers with 25 or more employees are required to pay at least 60% of the apportioned contribution rate, with the employee paying the remaining 40%. However, in such a competitive market for skilled workers, employers should consider the impact of providing only the minimum requirements under the law, while requiring their employees to shoulder the majority of the contributions from their paychecks.
Click here for a summary of the proposed regulation,
and additional resources available from EOLWD can be found below: