Paid Family and Medical Leave Law Q&A

1. What is the Paid Family Medical Leave (PFML) law?
The Department of Family and Medical Leave oversees the Commonwealth’s Paid Family and Medical Leave (PFML) program. This program provides temporary income replacement to eligible workers who are welcoming a new child into their family, are struck by a serious illness or injury, need to take care of an ill or ailing relative and for certain military considerations.

2. What are the key dates for the implementation of the new law?
Beginning in January of 2021, most workers in Massachusetts will be eligible to get up to 12 weeks of paid family leave and up to 20 weeks of paid medical leave. The program will be funded by premiums paid by employees, employers and the self-employed. Contributions to the program will begin on July 1, 2019.

UPDATE: On May 1, the state announced extended deadlines for the employer notice requirements and the Q1 exemption for private plans. For Quarter 1 only, the deadline to file for a private plan exemption that will be in effect for Q1 contributions has been moved from June 30 to September 20, 2019. The deadline for employers to meet all notice requirements has been extended from May 31 to June 30, 2019. For more information, please click here.

3. When will the PFML regulations be published?
To view the draft regulations, click here. The statutory deadline for the publication of PFML regulations was March 31, 2019.

4. Who is covered by the Paid Family Medical Leave (PFML) law?
a. If you're an employee who works for a business or a state or federal governmental agency in Massachusetts, you are automatically covered.

b. If you’re an independent contractor who contracts with a business that issues 1099s for more than 50% of its workforce, you are also covered and the PFML law refers to you as a "covered individual." Check with any businesses that you work for as a 1099 worker to determine if you are a “covered individual” on this basis.

c. If you're self-employed, you can opt in to obtain coverage.

d. If you work for a city, a town or other local governmental employer, you are covered only if your employer chooses to opt in.

e. Additionally, there is an earnings eligibility requirement for any individual who wants to take paid leave under the law. You must have approximately 15 weeks or more of earnings and have earned at least $4,700 in the 12-month period before you apply for leave.

5. What are the benefits this new law offers to employees?
The weekly benefit amount is calculated as a percentage of your earnings and so will vary for each individual. Paid family leave arising from a covered service member’s call to active duty is capped at 26 weeks per benefit year with the maximum benefit of $850 per week. Paid medical leave is capped at 20 weeks per benefit year with paid family leave being capped at 12 weeks per benefit year. The maximum amount of combined family and medical leave that an individual may take is capped at 26 weeks per benefit year.

6. What is the required contribution for a company to pay on behalf of 1099 contractors (if the 1099 contractors are more than half of the people getting paid)? 
To view information on contribution rates for employers and employees, click here.

7. How are sole proprietors going to have their personal contributions made (in scenarios where they have and don't have employees)?
You must opt into the PFML program for an initial period of at least three years and must make contributions for at least two full quarters before applying for benefits. Self-employed individuals who opt in are responsible for paying the full contribution amount.

8. What is the maximum combined amount of paid family and medical leave? Paid medical leave is capped at 20 weeks per benefit year and paid family leave is capped at 12 weeks per benefit year. The maximum amount of combined family and medical leave that an individual may take is capped at 26 weeks per benefit year.

9. I'm already offering family and medical leave benefits...am I exempt from the state contribution?
You will be able to apply for annual exemptions from making contributions for both medical leave and family leave if you offer a private plan option that is at least as generous as what is required under the PFML law. If your business receives this exemption, your employees will not be covered by the state PFML plan.

10. How much can my employer deduct from my pay to cover the PFML contribution share?
To view information on contribution rates for employers and employees, click here.