Massachusetts Delays Start of Paid Family and Medical Leave Act Contributions by 3 Months

On June 11, 2019, an agreement was announced between Massachusetts Governor Charlie Baker, the Senate and the House of Representatives to delay the commencement of required employer contributions to the new Massachusetts Paid Family and Medical Leave (the “MPFML”) program until October 1, 2019. Governor Baker, Senate President Karen Spilka and House Speaker Robert DeLeo announced the three-month extension in a joint statement:

“To ensure businesses have adequate time to implement the state’s Paid Family and Medical Leave program, the House, Senate, and Administration have agreed to adopt a three month delay to the start of required contributions to the program. We will also adopt technical changes to clarify program design. We look forward to the successful implementation of this program this fall.”
 
The legislature will need to pass an emergency bill before the delay is official. It is still unclear whether the June 30 deadline for the distribution of the mandatory notices will also be extended by the proposed bill, or what additional changes are proposed. If the extension is approved, it is likely the contribution rate will increase from 0.63% to make up for the months of lost contributions.

Rich May will monitor future developments concerning the MPFML program and provide additional updates as information is made available. Employers seeking further information regarding their obligations under the MPFML law should refer to Rich May’s previous client alert on the subject.

Disclaimer: This summary is provided for educational and informational purposes only and is not legal advice. Any specific questions about these topics should be directed to attorneys J. Allen Holland or Frank N. Gaeta.

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