The first year of anything is hard, and you can expect changes will become necessary along the way. The Massachusetts Paid Family and Medical Leave (PFML) Law is no exception. In the time since the measure went into effect on January 1, 2021, the Department of Family and Medical Leave (DFML) has done some reflecting on how everything worked and made noteworthy changes for 2022.

Almost $168M in Benefits During First 6 Months

The DFML published data for fiscal year (FY) 2021, which included the program’s initial rollout from January 1 through June 30. In that period, the department approved 43,440 applications and paid out benefits totaling $167,915,781, approximately 60% for medical leave and 40% for parental leave.

Interestingly, the DFML notes it denied 9,989 applications, representing about 23% of all requests received. Of those, 4,785 denials were issued because the applicants failed to submit or had insufficient documentation to support taking the leave. The department also denied 2,113 applications because the applicants’ employers participated in private plans or were exempt from the program altogether.

Data about the applicants provides a picture of who was seeking the leave:

• There were twice as many female applicants as males;
• Almost half of the applications came from people ages 30 to 39;
• The applicants’ average weekly wage was $1,434.52; and
• The average duration of the leaves taken was 53 days.

Contribution Rates Declining

For 2021, the contribution rate for employers with 25 or more covered individuals was 0.78% of eligible wages. For those with fewer than 25 covered employees, the rate was 0.378%. The DFML recently announced the rates will be dropping for calendar year 2022. The new rates are:

• 0.68% for companies with more than 25 covered employees; and
• 0.344% for those with fewer than 25.

Updated posters and notices for the rate decreases are available from the DFML.

Maximum Allowed Weekly Benefit Rising

The benefit amount individuals are eligible to receive is based on their own average weekly wage and that of workers throughout Massachusetts. The calculation depends on the following:

• The part of an employee’s average weekly wage that is less than or equal to 50% of the average weekly wage for Commonwealth workers will be covered at an 80% rate.
• If part of the employee’s average weekly wage is greater than 50% of the average weekly wage for Commonwealth workers, it will be covered at a 50% rate, up to the maximum allowed benefit amount.

For 2021, the average weekly wage in Massachusetts has been $1,487.78, and the maximum weekly benefit allowed was $850. Effective January 1, 2022, the average weekly wage will increase to $1,694.24, and the maximum weekly benefit allowed will rise to $1,084.31.

Private Plan Exemptions

If an employer held a private plan exemption and has decided not to renew, it must provide notice to all covered individuals and the DFML at least 30 days before the exemption expires.

If the exemption was effective before January 1, 2021, the employer may go through one renewal cycle to avoid paying retroactive contributions. If the employer cancels the private plan during the renewal cycle, it will be forced to pay retroactive contributions back to the effective date of the initial exemption. If the renewal cycle is complete, however, and the employer cancels the private plan, then no retroactive contributions will be owed.

Serious Health Condition Form Updated

The DFML has updated the “Certification of Your Serious Health Condition” form, specifically regarding pregnancy and childbirth-related conditions.

Bottom Line for Employers

To be in compliance with the recent changes, including modifications to the average weekly wage and contribution amounts, you must get out the updated notices and hang new PFML posters. In light of the FY 2021 data provided by the DFML, employees will continue to use the leave going forward. Be sure to stay on top of the required notices and posters.

Maureen E. James is an associate at the firm of Skoler, Abbott & Presser, P.C., in Springfield, Massachusetts. Maureen’s practice focuses on defending employers from claims of discrimination, harassment, wrongful terminations and allegations of violations of FMLA. You can reach her at 413-737-4753 or mjames@skoler-abbott.com.