Massachusetts Releases Paid Family and Medical Leave Employer Guide, Workplace Poster, and Template Notices

The Massachusetts Department of Family and Medical Leave has released a new guide for

employers on the Massachusetts Paid Family and Medical Leave Act (PFMLA).   

The Department also issued the mandatory PFMLA mandatory workplace poster, and template notices employers may use to fulfill the notice requirement to employees and 1099-MISC independent contractors. 

Deductions, Contributions, Reporting

Beginning July 1, 2019, employers must make deductions from wages (or from payments for services paid to covered individuals) to fund the Trust Fund that will pay out benefits beginning in 2021. The guide instructs employers to report their workforce information and submit contributions through the Department of Revenue’s MassTaxConnect system beginning in October 2019. Employers not registered with the MassTaxConnect system can do so at https://www.mass.gov/how-to/register-your-business-with-masstaxconnect.

The guide also contains information on employers’ reporting obligations under the PFMLA. The Department expects to release more information before July 1, 2019, with the specifics of the report. Employers should plan to include at least the names, social security numbers, and wages of all of their Massachusetts workforce. Employers also will have to provide their federal employer identification number. Employers will be required to provide this information for W2 and 1099-MISC contractors, regardless of whether the worker qualifies for individual coverage under the PFMLA.

Private Plan Exemption Process

The guide clarifies that beginning April 29, 2019, employers may apply for an exemption from the PFMLA if they have a “private plan” by going through the employer’s MassTaxConnect account. Employers can choose to apply for a private plan exemption from either the medical leave or the family leave contributions, or both. The private plan offered must provide benefits greater than or equal to those provided by the PFMLA to be granted an exemption. If the plan is approved, the employer must upload a copy of the plan. If the plan is denied, the employer may seek review. Employees continue to be entitled to the job protection, anti-discrimination, and anti-retaliation provisions under the PFMLA, even if a private plan exemption is granted. To qualify for an exemption, the private plan must meet the Department’s minimum requirements.

Workplace Poster

The PFMLA requires employers to notify employees of the law and its requirements. The Department’s mandatory workplace poster for employers provides information on the weekly benefits available, defines covered individuals and their rights to job protection, and describes the anti-retaliation and anti-discrimination provisions of the law and the option for private plans. Employers must display the poster in a conspicuous place at each of their Massachusetts premises. This poster should be displayed immediately.

Notices

The Department has also released template notices employers may use to fulfill the notice requirement to employees and 1099-MISC independent contractors.  Employers must provide a notice to their current workforce by May 31, 2019.

The notice must cover the benefits, contribution rates, and other protections available under the PFMLA. The notice also includes an acknowledgment, which must be signed by employees and contract workers and retained by the employer.

The DFML’s notice templates contain fields that the employer must complete. These fields include the employer’s name and address, the contribution rates and intended deductions, and whether the employer will utilize the private plan exemption.

Employers who currently offer or are planning to offer a private benefit that meets the minimum standards of the PFMLA may apply for an exemption from the PFMLA beginning April 29, 2019.

Employers choosing to create their own notices, rather than use the templates provided by the state, must ensure the notices include the following sections:

• An explanation of the availability of family and medical leave benefits
• The employee’s contribution amount and obligations
• The employer’s contribution amount and obligations
• The employer’s name and address and the identification number assigned by the DFML
• Instructions on how to file for a claim for family and medical benefits
• The address, email address, and telephone number of the DFML

The notice provided to 1099-MISC contractors differs slightly from the one provided to employees, such as requiring an explanation of how the worker can obtain coverage as a self-employed individual and the contribution obligations they would assume if they choose to obtain such coverage.

Employers may provide the notice to employees and contractors electronically and receive the acknowledgments of receipt electronically as well. Employees’ acknowledgments of receipt should be placed in the employees’ files. If an employee fails to return the acknowledgment, the employer still fulfills its notice obligation if it can establish it provided the notice and an opportunity to acknowledge or decline to acknowledge receipt of the notice to each member of its current workforce.

Employers must provide notice to new employees within 30 days of employment and to contractors when entering into a contract for services.

Interactive Tools

The Department also offers employers two interactive tools for analyzing coverage questions and contribution amounts. The first allows employers to determine if they are responsible for paying the employer share of PFMLA contributions by comparing the number of 1099-MISC contract workers to the number of W2 employees. The second is a calculator that provides employers with a breakdown of required contributions based on the size of their workforce and payroll.

Action Required:  Employers should immediately post the required poster, and provide notice to their current workforce by May 31, 2019.

Employers should also ensure that they are prepared to meet all reporting, contribution and deduction requirements for the July 1, 2019 effective date. 

As always, 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.