Massachusetts: Department of Family and Medical Leave Issues Important PFML Updates

By Amelia J. Holstrom - Skoler Abbott P.C.

November 21, 2024

The Massachusetts Department of Family and Medical Leave (Department) has issued its annual report and other important updates that require employer action.  Here is what employers need to know.

FY 2024 Report Sheds Light on Employee Use

The Department administers the Paid Family and Medical Leave (PFML) law.  Under that law, employees are eligible to take up to 26 work weeks of PFML each benefit year for various reasons, including but not limited to leave for their own serious health conditions or the serious health condition of their family members and leave to bond with children after birth, adoption, or placement.  Each year, the Department issues an annual report regarding use of PFML (excluding private plans).

The Department recently issued its Fiscal Year 2024 (July 1, 2023-June 30, 2024) PFML Report, which contains statistics related to employees utilizing PFML through the Department (rather than a private plan). When compared to the FY 2023 Report, the 2024 Report sheds light on some significant differences in FY 2024 and some things that stayed the same.  Here are the highlights:

In FY 2024, the Department approved 179,564 applications for PFML.  This is a 25.26% increase in approved applications over FY 2023.  The majority of those – 51.43% – were for an employee’s own serious health condition (excluding leave for pregnancy and post-birth recovery), which is slightly higher than the previous year when medical leave for an employee’s own serious health condition constituted just under 50% of approved applications.  Leave associated with recovery from childbirth and/or pregnancy represented 12.83% of approved applications, which was similar to FY 2023. Family leave to bond with a child following birth, adoption or foster care placement accounted for 23.98% of approved applications and leave for a family member’s serious health condition represented 11.73% of approved applications.  A small amount of approved applications were for military exigency leave and leave to care for a service member. Notably, the Department decreased the amount of time it takes to make an initial determination on an application by 4 days.

The report indicates that the Department denied 15.25% of applications for various reasons, including that the individual had not satisfied the financial eligibility test, worked for an employer with a private plan, failed to submit appropriate documentation, did not apply for bonding leave within one year of the birth, and did not notify their employer of their need for leave within the timelines set forth in the statute and regulations.  These statistics and reasons for denial are similar to those in the FY 2023 Report.

The report also includes demographics for approved claimants.  Notably, just like in FY 2023, the age group with the most approved claims was 31-to-40-year-olds.  Additionally, the report indicates that only 117,152 unique, covered individuals took PFML, but the Department approved almost 180,000 applications, meaning that several individuals took more than one type of leave in FY 2024.

Finally, and perhaps most significantly, the Department paid out more than $1 billion in PFML benefits in FY 2024.  That was a $217 million increase over FY 2023, in which the Department paid out under $833 million in benefits.

The Contribution Rate is Staying the Same

Despite the significant increase in the amount of benefits paid by the Department in FY 2024 over FY 2023, the annual contribution rates are not changing.  In 2025, the PFML contribution rate for businesses with 25 or more employees will remain 0.88% of wages. Of the 0.88%, 0.18% applies to the family leave portion of the law and may be paid for solely by the employee. The remaining 0.70% is applicable to the medical leave portion of the law, of which 0.28% may be paid for by the employee, with the remaining 0.42% to be paid for by the employer.

Similarly, the PFML contribution rate for businesses with less than 25 employees will remain at 0.46% of wages, with 0.18% attributable to family leave and 0.28% attributable to medical leave.  Employers under 25 employees may require the employee to pay the full 0.46% contribution.

Individual contributions are still capped by the Federal Social Security taxable maximum.  In other words, PFML contributions are not paid by the employee or employer on any income over that maximum.  For 2025, that maximum is $176,100.

Employers are required to provide notice to employees regarding the contribution rates at time of hire and at least 30 days in advance of any contribution rate change.

The Maximum Weekly Benefit is Increasing

PFML provides partial wage replacement for employees up to a maximum weekly payment based on a calculation involving the employee’s average weekly wage and the state’s Average Weekly Wage, which is calculated and published yearly. Initially, the maximum weekly benefit amount was $850 per week.  It has increased significantly since then.  In 2024, it was $1,149.90. In 2025, we will see a small increase in the maximum weekly benefit amount to $1,170.64.  Due to this minor change, employers will be required to give current employees a new notice no later than December 2, 2024.  The notices can be found on the Department’s website.

A New Poster is Required

Employers must post a PFML poster prepared by the Department in a conspicuous location in the workplace.  The poster must be available in English and each language which is the primary language of 5 or more individuals in the employer’s workforce.  In other words, employers may need to post the poster in multiple languages.  DFML provides translations in 13 languages.  The employer is responsible for providing translation with regard to any language not provided by DFML.  

The Department has updated the poster to reflect the change in the maximum weekly benefit amount effective January 1, 2025.  Accordingly, employers need to post that poster on January 1, 2025 in their workplace.  The poster, in English, can be found here. Translations into other languages, provided by the DFML, can be found here.

Bottom Line

More employees are utilizing PFML every year, as the FY 2024 Report makes clear.  The statute can also be a challenging one to implement and understand for employers, and it carries steep penalties with potential triple damages, attorney’s fees, and costs.  As we move forward, employers should consult with employment counsel regarding any questions or situations they need guidance on with regard to this leave.

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