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New Massachusetts Paid Family and Medical Leave Program

The new Massachusetts Department of Family and Medical Leave has issued a draft of the regulations surrounding the new Paid Family and Medical Leave Program which we have detailed below.

As of July 1st, 2019, Massachusetts businesses will need to begin allocating money to the new state-run Paid Family and Medical Leave Program. Although the allocation begins in July, workers cannot start taking time off until 2021. Businesses with 25 or more employees in Massachusetts must contribute to the program unless they are given an exemption. An example of the contribution for a similar size firm would be $6.30 for every $1,000 a worker makes, through the first $128,400 of a worker’s annual earnings.

The agency proposed that of that $6.30, businesses can withhold up to $3.18 out of the employee’s wages with the remaining $3.12 coming from the business itself. Employers can elect to pay a higher percentage of the split but not less than the $3.12 minimum allocation.

Businesses with fewer than 25 employees in Massachusetts are not required to contribute but the employees of the company are still required to do so.

The money will be deposited into a fund administered by the new department that workers can tap into for up to 12 weeks of pay in order to care for a new child or family member with a serious health condition. They also have the option to use the fund for up to 20 weeks of time off to deal with a serious health issue of their own.

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