October 2021

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Massachusetts officially delays and amends paid family leave law

07/03/19

Author: ADP Admin/Tuesday, July 2, 2019/Categories: Compliance Corner , State Compliance Update, Massachusetts

Overview:  Massachusetts officially delayed the start of contributions under the Massachusetts Paid Family and Medical Leave Act (PFMLA) until October 1, 2019, and amended the law.  With the delay, the Massachusetts Department of Family and Medical Leave announced a number of changes.


Details:

The Massachusetts Department of Family and Medical Leave announced a number of changes involving the contribution rate, notice requirement, plan exemptions, and the publication of the final regulations. The contribution rate will increase to 0.75% of employee gross earnings, while the deadlines to notify employees of the law and apply for a “private plan” exemption have been delayed until September 30, 2019, and December 20, 2019, respectively.

Contribution Increase

The Department announced that the contribution rate, previously 0.63% of employee gross earnings up to the social security maximum, will increase to 0.75% of employee gross earnings. This increase is meant to offset the three-month delay in collections from July 1, 2019 to October 1, 2019.

Notice to Employees

In recognition of the delay in contributions, the Department also has delayed the notice deadline. A previous update mandated that employers notify employees of the planned withholdings and their rights under the law by June 30, 2019. Due to the delay, the Department has extended the deadline to notify employees to September 30, 2019.

The Department has updated its notice so employers that already have distributed notices should be prepared to distribute new notices prior to September 30.

Private Plan Exemptions

The Department also has extended the deadline to apply for a private plan exemption that will excuse an employer who maintains a qualifying private plan from making the initial contributions. The new deadline to apply for a private plan exemption for the first quarter of contributions is December 20, 2019. However, if an employer’s exemption does not receive approval before December 20, 2019, it will be responsible for remitting the full contribution amount from October 1, 2019, forward.

Action Required:  Click here for the new workplace posters and written notification templates, which are now available and include changes based on the announced 3 month program delay.  Employers should be prepared to post the new poster and distribute new notices. 


Please contact your dedicated service professional with any questions. 

* Produced in Partnership with Jackson Lewis, P.C. 

This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal advice.

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