CHANGES TO MASSACHUSETTS STATE LAWS
On January 1, Massachusetts minimum wage will increase to $13.50 per hour and the minimum wage for tipped employees will increase to $5.55 per hour.
The rate of premium pay (applicable to many retail employees, known more commonly as Blue Laws) for working on Sunday, Memorial Day, Juneteenth, Independence Day, and Labor Day, will be reduced to 1.2x an employee’s regular rate of pay. Premium pay for working on New Year’s Day, Columbus Day, and Veterans Day, however, remains at 1.5x the employee’s regular rate.
Employees in Massachusetts can begin to take Paid Family and Medical Leave (PFML) starting January 1.
LET’S REVIEW PAID FAMILY AND MEDICAL LEAVE
PFML includes partial wage replacement, job protection, and continuation of employment benefits. PFML is funded by a state tax, which began in October, 2019, and is administered by the Department of Family and Medical Leave. Employers are responsible for remitting the premiums but are not responsible for paying out PFML benefits directly to employees. This is often taken care of by your payroll provider.
PFML applies to most employers and employees in Massachusetts; generally, only workers who are exempt from state unemployment insurance are exempt from PFML.
Employee Eligibility
Massachusetts will determine an employee’s eligibility when they apply. It isn’t your responsibility to determine if someone is eligible. That said, when speaking with your employees about their job-protection benefits, it may be helpful to know who is or is not likely to qualify.
To be eligible for PFML, an employee must have:
Earned $5,100 during the last 4 completed quarters (from any combination of Massachusetts employers, not just you), and at least 30 times more than the amount they would be eligible to get each week from PFML; and:
Paid the full 0.75% contribution rate for both family and medical leave for at least 2 of their last 4 completed quarters before claiming benefits.
Amount and Reasons for Leave
Eligible employees may take up to 12 weeks of family leave, up to 20 weeks of medical leave, or up to 26 weeks of some combination of family and medical leave.
Paid family leave may be taken to:
Bond with a newborn child
Bond with a child after adoption or foster care placement
Manage family affairs when a family member is on active duty in the armed forces
Care for a family member who has a serious health condition (starting July 1, 2021)
Paid medical leave may be taken for an employee's own serious health condition.
Benefits
PFML can be utilized with other state and federal family and medical leaves, such as the federal Family and Medical Leave Act. PFML provides job protection and requires that you continue the employee’s health insurance benefits, if any, on the same terms as though they had continued to work during their leave.
The benefit amount will be equal to 80% of an employee’s weekly wage that is 50% or less of the state average weekly wage, plus 50% of their weekly wages above 50% of the state average weekly wage. In 2021 benefits are capped at $850 per week. Employers are not responsible for determining how much an employee is entitled to when taking PFML—the state will determine how much an employee will receive based on their past earnings and the current state average weekly wage.
Notice to Employees
If you haven’t already notified current employees about PFML, you should do so immediately! New employees must be notified within 30 days. The notice must be written in the employee's primary language. Employers are also required to obtain a written acknowledgment from each employee that they received the notice.
The Department of Family and Medical Leave offers a template notice and acknowledgment. Alternatively, employers may create their own form.
Required Poster
Employers must display a poster about PFML in English. If five or more of your employees primarily speak a shared language other than English, you must also post a version in that language if it is available here.