Massachusetts Supreme Judicial Court Issues Important Decision on Paid Family and Medical Leave

By John S. Gannon - Skoler Abbott P.C.

September 20, 2024

Last week, the Massachusetts Supreme Judicial Court (the “SJC”) issued its first decision interpreting language in the state Paid Family and Medical Leave (“PFML”) law.  The SJC was called upon to answer an important question: whether certain employer-provided benefits, such as vacation and sick time, continue to accrue while an employee is out of work on PFML?   As we expected, the Court sided with the employer and ruled that a policy denying the accrual of vacation, sick time and similar benefits while an employee is out on PFML leave does not violate the law.

The plaintiffs in the case, a group of state police officers, challenged their employer’s policy of denying the accrual of certain benefits — including length-of-service credit, vacation and sick time — while they were taking PFML leave.  The plaintiffs claimed to be harmed by this policy because instead of seeking PFML they used other leave options (or took no leave at all).   They argued that the following language in the PFML statute demonstrated the right to accrue these benefits while on leave:  “The taking of family or medical leave shall not affect an employee’s right to accrue vacation time, sick leave, bonuses, advancement, seniority, length-of-service credit or other employment benefits, plans or programs.”

Fortunately for employers, the SJC disagreed with the plaintiffs.  The Court pointed out that the above-quoted language only ensures that employee rights to such benefits are not affected (i.e., reduced) while they are out.  For example, if at the time an employee goes out on PFML they are entitled to accrue 4.5 hours of vacation or sick time per pay period, they must accrue the same 4.5 hours of vacation or sick time per pay period when they return from leave.  The same formula applies for length-of-service credit.  In the decision, the SJC also took a moment to remind employers that the same “right to accrue” language does not apply to health insurance benefits, which (as readers know) must continue undisturbed while employees are on out on PFML.

In the end, it seems obvious (to me at least) that the SJC got this one right.  The language relied upon by the plaintiffs in this case says nothing about continuing to accrue time off while they were out on leave.  Instead, it clearly addresses their “right” to accrue time off and seniority rights when they get back.  Plus, company-provided benefits like vacation and sick time often accrue based on the number of hours worked per week or month.  If an employee is out on PFML leave, they are not working; so allowing them to accrue benefits linked to hours worked makes about as much sense as screen doors on a submarine.  Chalk this one up as a good, common-sense decision by our Supreme Judicial Court.

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