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In a late night statement issued from Beacon Hill on June 11, 2019, Massachusetts Governor Charlie Baker, along with state house and senate leadership, announced that they agreed to implement a three-month delay to the state Paid Family and Medical Leave program. In the joint statement, the leaders explained:
To ensure that 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 the 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.
Although the legislature will need to pass an emergency bill before the delay is official, this announcement is welcome news for employers that are facing a July 1, 2019 contribution start date. If the bill is passed, employers will not have to make the required contributions until October 1. 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.
We will continue to monitor and provide updates to our clients on Paid Family and Medical Leave developments.
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