Massachusetts Employees May Supplement Paid Family Leave with PTO

Employees receiving Paid Family and Medical Leave (PFML) benefits in Massachusetts are entitled to supplement their PFML benefits with available accrued paid leave. The change is effective for PFML applications filed on or after Nov. 1, 2023. The state also announced that the contribution rate for 2024 will increase.

The Details

Option to Supplement PFML with PTO

Employers must provide employees on PFML with the option of supplementing their weekly PFML benefit with their accrued PTO, up to the employee’s Individual Average Weekly Wage (IAWW). The requirement to offer the option also applies to private PFML plans.

An employee’s IAWW is calculated by the Massachusetts Department of Family and Medical Leave (DFML) from the amount an employee earned in the last four completed calendar quarters before the start of the employee’s benefit year. The IAWW is the average amount the employee earned per week in the two quarters when the employee earned the most money (or the one quarter with the most money, if the employee only worked in two or fewer quarters).

Employers should subtract the amount of the PFML benefits from the employee’s IAWW. The difference is the maximum amount that can be paid out using the employee’s accrued paid time off.

Example: An employee’s IAWW = $2,000 and they have an approved PFML application that pays $1,100 per week. The employee may top off that amount with paid time off up to $900, if available.

Employers with a registered Leave Administrator can determine an employee’s weekly PFML benefit rate and their IAWW by accessing the employee’s PFML Approval Notice.

Contribution Rates Increasing for 2024

In 2024, employers with 25 or more covered individuals must send to the DFML a contribution of 0.88 percent of eligible wages, up from 0.63 percent in 2023. This contribution can be split between covered individuals’ payroll or wage withholdings and an employer contribution.

In 2024, employers with fewer than 25 covered individuals must send an effective contribution rate of 0.46 percent of eligible wages, up from 0.318 percent in 2023. This contribution rate is less because small employers aren’t required to pay the employer share of the medical leave contribution.

Next Steps

• Ensure employees are given the option to supplement PFML benefits with accrued paid time off for PFML applications filed on or after Nov. 1, 2023.
• Comply with new contribution rates for 2024.

Please contact your dedicated service professional with any questions.