After announcing an agreement to delay the start of contributions under the Massachusetts Paid Family and Medical Leave (“MPFML”) program ? as detailed in our June 13, 2019 client alert ? Massachusetts has enacted an amendment to the law. Under the amendment, as previously announced, MPFML contributions will begin on October 1, 2019, rather than July 1, 2019.
On June 18, 2019, the Massachusetts Department of Family and Medical Leave posted final regulations. In addition to reflecting the delay to the start of employer contributions, the regulations:
Push back the deadline for employers to provide written notice about the MPFML program to September 30, 2019. (Employers who have already provided such notice must provide an updated notice explaining the changes brought about by the delay).
Extend the window for employer exemption applications, with such applications now due by December 20, 2019.
Raise the required employer contribution rate from 0.63% to 0.75% in order to mitigate the loss of funding caused by the delay. (The amendment to the MPFML statute does not change the provision establishing an initial contribution rate of 0.63%, raising the question of whether the Department has the legal authority to do so.)
Rich May will continue monitor future developments concerning the MPFML program and provide additional updates as information is made available. Employers seeking additional information regarding their obligations under the MPFML law should refer to Rich May’s original client alert on the subject, dated May 30, 2019.
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.