Massachusetts Division of Paid Household and Medical Depart Releases New Varieties and Updates Forward of Tiered Advantages Rollout

Effective January 1, 2021, the Massachusetts Department of Family and Sick Leave (“DFML”) has released important updates to the start of vacation benefits under the Massachusetts Paid Family and Sick Leave Act (“PFML”). As we reported earlier, DFML has provided many updates to clarify PFML since June 2019. You can find our analysis of the various proposals and revisions of DFML for PFML here, here, here and here.

As a reminder, starting December 15, 2020, workers can take paid family leave to bond with a newborn, newly adopted child, or new foster child. Starting January 1, 2021, employees can take paid family leave to care for a sick family member and / or manage family affairs for a family member only if that family member is on active military service abroad. Starting January 1, 2021, employees can also take medical leave to treat a personal illness or serious injury. Finally, starting July 1, 2021, all PFML benefits will be available, including family leave to care for a family member in severe health.

In anticipation of the availability of most benefits on January 1, 2021, the DFML has published helpful materials, which below serve as guidelines for employers and employees. DFML has also released a new workplace poster that must be displayed in the workplace. To make a seamless transition to the start of the PFML program in the New Year, the summary below provides details on the new updates and links to forms created by the DFML.

Updated frequently asked questions

On a new page with frequently asked questions (“FAQs”) the DFML has clarified questions about contributions and advantages. The following is noted in the FAQs:

• There is no seven-day waiting period for employees applying for sheltered vacation through their employer before applying to DFML for available benefit payments.
• Employees cannot “top up” PFML benefits by using the paid time off provided by their employer (but an employer with an exemption from a private plan that offers paid vacation benefits that are equal to or more generous than those provided under the PFML; may allow employees to add benefit exemption amount for private plans with accrued paid vacation).
• Private disability policies purchased separately by the employee, including through voluntary on-site services, do not reduce the employee’s PFML benefits.
• An employer who terminates a private plan is responsible for making retroactive contributions up to the effective date of the original leave of absence approval if they do not extend their plan for a second term. Once the extension is submitted and approved, an employer can terminate their private plan at the end of the second term with no retroactive contributions. An employer with an exemption originally approved before January 1, 2021 must participate in a renewal cycle to avoid liability for retrospective contributions.
• An employer who did not maintain a private plan or whose renewal of the private plan was withdrawn by the DFML may be held liable for retrospective contributions to the PFML program. If an employer does not have a private plan, the DFML may impose a penalty up to an amount equal to the total annual salary of the employer for employees for each year, multiplied by the then current annual contribution rate required under the PFML. The DFML can also impose additional penalties and interest on the employer.

Workplace poster

As previously reported, when the posters are available from DFML, employers are required to display PFML workplace posters in English and in any language that is the primary language of five or more people in the employer’s workforce. DFML has issued an updated workplace poster, which is available here.

Certification form

At some point in 2021, employers will be able to claim benefits on behalf of employees. First of all, the employees have to apply for benefits themselves.

To receive PFML Serious Health Care Benefits, an employee must submit both an application and a certification form. To fill out the form, the employee completes Sections 1 and 2, and a healthcare provider must complete Sections 3 to 6. Claims are delayed or denied without certification by a health care provider.

Information for employers and employees

Finally, the DFML provided information to employers to learn more about their PFML obligations. In October 2020, employers were required to register a PFML vacation administrator with DFML. The employer information page contains a link that allows employers to both register an administrator and create an employer account to manage workforce PFML leave. Employers who manage vacation for multiple companies must create accounts for each employer ID number.

Further information for employees can be found here.

What Massachusetts Employers Should Do Now

As Massachusetts employers anticipate the gradual introduction of the state’s PFML plan, they should:

• Make sure you have a PFML administrator registered with DFML and created an employer account to manage the workforce’s PFML vacation.
• Publish the updated DMFL poster in English and any other applicable languages
• Continue to monitor the DFML website for important updates.

This document is provided for informational purposes only and is not intended as legal advice and should not be construed as legal advice. Please consult your attorneys about factual situations under federal and applicable state or local laws that may place additional obligations on you and your company. © 2020 Epstein Becker & Green, PC