What you should be doing now to comply with MA PFML

MA Paid Family Medical Leave is adding the ability of employees to use their time off to Top-Off leave payments!

Changes to MA Paid Family Medical Leave have been communicated by the DFML.  As of November 1, 2023, employees may use their accrued time off (sick, vacation/PTO, personal time) to supplement their weekly PFML payments.  Please note that employers may not require employees to use accrued time, but instead must allow employees to choose whether to do so.  The total of PFML and time off cannot exceed 100% of the employee’s regular weekly wage.

Prior to this change, employees were only able to apply accrued time off to the 7-day waiting period.  This is a positive change for employees and employers. Employees can earn as much as possible during PFML by using accrued time off that they may not have had the opportunity to use after being out on PFML.  Employers benefit by not having employees return from PFML leave to then use an abundance of accrued and unused time off.  It is important to communicate this shift in the rules so employees can plan appropriately.  As a result, employers will need to be more involved in the PFML process, helping employees integrate their accrued time off and PFML leave payments.  Additionally, this change syncs up to what most private plans have allowed since the inception of PFML – the use of accrued time off during PFML, making the PFML rules uniform across the board.  Employers that offer a separate Top-Off plan will need to decide if they want to continue this benefit, modify or do away with the Top-Off plan utilizing their employees available PTO.

Secondly, DFML has increased the contribution percentages for 2024.  Companies with 25+ employees will deduct a total of 0.88% (up from 0.63% in 2023).  Companies with under 25 employees will deduct a total of 0.46% (up from 0.318% in 2023).  Be sure to update your payroll withholdings accordingly.  If you have a private plan, please verify your withholding percentages with the carrier and make the associated changes. Please note that private plans cannot charge more than the rates set by DFML but may charge less based on the carrier’s evaluation of the plan/utilization.

And finally, the weekly benefit maximum in 2024 will be $1,149.90 (up from $1,129.82 in 2023).  Private plans also need to mirror this change.

With these updates to PFML, it’s important to remember to update your employee handbook / PFML policy to reflect the changes to the use of accrued time off and communicate these changes to employees.  Additionally, you’ll want to be sure to send out the 2024 Employee PFML Notice to current staff and add that same form to your new hire packet for all those hired after January 1, 2024 or notify the staff with an end of year email that includes the new PFML rates.

All those with a private plan must apply for an exemption from DFML the quarter prior to the renewal date each year.  Click Here for instructions on the renewal process.  It’s also always a good practice to ensure the contact information for the DFML/private plan contact person is verified/updated each year to ensure applications and correspondence reach the organization in a timely manner.  In our experience, employees may go directly to DFML to apply for leave and forget to notify their employer.  The employer contact would receive a notification of the employee’s intent to take leave, allowing the employer to follow up with the employee accordingly.  Click Here for instructions on updating the contact person for DMFL.

We encourage everyone to complete a little housekeeping as we roll into year-end as well.  This end-of-year check list will help you end the year in a great place and allow you to smoothly transition into the New Year!

END OF YEAR CHECK LIST

Verify Employee Information

• Make sure employee physical addresses are up to date for W2s.

Handbook

• Complete annual review of the Employee Handbook
  • Review policies & ensure they reflect current practices and processes.
  • Update any state or federal law.
• Conduct virtual / in-person handbook review of important policies.
• Send handbook to all staff / collect signed acknowledgments.

Compliance

• Conduct annual Sexual Harassment Training.
• Update employment and labor law posters.

Time off

• Calculate/verify rollover time/increase accruals as necessary if tenure-based.

Benefits

• Collect updated beneficiary information for group/supplemental life insurance.
• Communicate increase in retirement contribution limits & include instructions for updating employee deduction; email a copy of the SPD to employees.

Files

• Move files /I-9 documents of separated employees to appropriate location.

Payroll

• Create and communicate 2024 payroll schedule.

Holidays

• Create and communicate the 2024 holiday schedule.

To find out more about how we can help you with MA PMFL and other HR services, please reach out to Insource Services at insource@insourceservices.com or 781-235-1490.