Massachusetts Passed Family and Medical Leave (PFML) program was passed as part of Governor Charlie Baker’s “grand bargain” legislation in 2018.
Under PFML, workers have the freedom to take time off for serious health conditions or care for a family member with such an ailment, bond with a new child, or manage any needs arising from military deployment.
What is PFML?
Mass Paid Family Leave (PFML) is a state-based program created to support workers who require time off for health or family reasons. Similar to the federal Family and Medical Leave Act (FMLA), PFML grants workers up to 12 weeks of paid family or medical leave annually.
PFML also covers care of eligible relatives who have a serious health condition and up to 12 weeks of leave for those serving in the military or active duty. Employers are required by law to display a workplace poster highlighting these benefits and give employees written notice, as well as acknowledge receipt of that information.
PFML is a relatively straightforward process, but there are some important considerations to take into account. For instance, how will school employees and employees who work on a seasonal basis be treated?
PFML vs. Private Plans
Enacted in 2018, and set to go into effect in 2021, Massachusetts’ Paid Family and Medical Leave Act (PFML) provides up to 12 weeks of job-protected paid family leave to care for a new child, strengthen bonds with sick or injured family members, and manage affairs if someone is called into active military service.
Employers can comply with PFML by enrolling in either the state plan that is funded through payroll taxes, or creating a private plan (either self-funded or through third-party insurer) that must be approved by the state and offer employees equal or better benefits.
Employers have the option of applying for an exemption from deduction and contribution requirements of the law through a private plan that offers comparable or better benefits at no cost to employees than what would be charged under PFML, plus provides them with a right of appeal to the Department of Family and Medical Leave should any covered individual be denied benefits under said plan.
PFML vs. Short-Term Disability
When it comes to taking time off work, there are a variety of options such as short-term disability (STD) and the federal Family Medical Leave Act (FMLA). However, these benefits can be complex in nature.
Both STD and FMLA cover severe medical problems that prevent you from working, but there are some distinctions between them.
The primary distinction is who is covered. While FMLA automatically extends coverage to many workers, short-term disability isn’t a government mandated program.
Another distinguishing characteristic is the application process. With STD, employees must apply for disability before their condition causes them to miss work.
FMLA provides for a convenient no-waiting period.
Furthermore, FMLA can be a major benefit to an employee and employers have the power to determine whether it should be utilized or not.
Employers have the unique opportunity to offer more comprehensive benefit plans through PFML, but it may be confusing for employees. Be sure to communicate with your staff and take the necessary steps to help them understand these new choices.
PFML vs. Unemployment Insurance
On January 1, 2021, Massachusetts workers who are eligible for wage replacement benefits under PFML began receiving them. These benefits may include welcoming a new child into the world, caring for a family member with serious health conditions, responding to military-connected events or managing an upcoming call-up. These are separate from FMLA and other family and medical leave policies employers offer their employees.
Unlike unemployment insurance, which only provides job protection, PFML also provides wage replacement. This enables employees to continue receiving their full salary while on PFML – particularly beneficial if the new job they have is not comparable to the one they left behind.
State mandated insurance provider PFML, employers have the option to opt out of this program and offer their employees private plans that at least match what is provided by PFML. For more information about how to do so, visit the PFML website for details on how to offer your employees a private plan that matches or exceeds what the state plan offers.
