By: HUB's Absence Management Team

Legislative Update January 4, 2024: This piece has been updated to reflect an amendment to the rules regarding employers’ discretion in allowing the use of PTO during MA PFML

As part of the recently passed budget for fiscal year 2024, the state of Massachusetts has made changes to their Paid Family & Medical Leave (MA PFML) law involving the use of accrued paid time off, such as PTO, vacation, or sick time, while an employee is on MA PFML.

Overview: Massachusetts Paid Family and Medical Leave

Employees in Massachusetts are eligible to take paid leave to care for their own health condition or a family member with a serious health condition, to bond with a new child, for managing affairs while a family member is on active military duty, or to care for a family member who was injured serving in the armed forces. Currently, employees on MA PFML are not allowed to use their accrued PTO, vacation or sick time, or any other accrued time off benefits to supplement their MA PFML pay. Effective November 1, 2023, employees will be allowed to supplement their MA PFML benefits with accrued leave time.

Supplementing Massachusetts Paid Family & Medical Leave Benefits

Previously, employees receiving their MA PFML benefits through the state plan could only supplement or “top off” their MA PFML benefits through certain employer provided programs such as an employer provided paid family leave, parental leave, or temporary disability benefit. Any accrued paid time off such as combined PTO, vacation, or sick time could only be used as a block of time during the seven-day unpaid waiting period or, if elected by the employee, as a block of time at the beginning or end of the MA PFML period in lieu of MA PFML pay benefits.

Employers who provided MA PFML benefits through an approved private plan could choose whether they would allow employees to supplement their MA PFML benefits with accrued time.

Beginning on November 1, 2023, these limitations will no longer be in place. Employees may use their accrued leave time to supplement their MA PFML benefits, and employers with private plans must give employees the option of using their accrued time during MA PFML. This does not, however, give the employer the right to require employees to use their accrued time during MA PFML. Under no circumstances should an employee collect more than 100% of their normal pay while using a combination of these benefits.

Next Steps

Employers should review their policies for PTO, vacation, sick time, and other accrued time off benefits and update them to reflect these changes. Those with a private plan who previously did not allow employees to use their accrued time during MA PFML must update their private plan to permit such use. All employers should update their leave processes to include a calculation of the amount of accrued leave needed to “top off” an employee’s MA PFML benefits. Massachusetts provides a calculator for estimating an employee’s MA PFML benefit amount, which can aid in this process.

NOTICE OF DISCLAIMER

Neither Hub International Limited nor any of its affiliated companies is a law or accounting firm, and therefore they cannot provide legal or tax advice. The information herein is provided for general information only and is not intended to constitute legal or tax advice as to an organization’s specific circumstances. You should consult an attorney, accountant, or other legal or tax professional regarding the application of the general information provided here to your organization’s specific situation in light of your organization’s particular needs.