Seyfarth Synopsis: Employers must provide current employees with written notice of the 2025 contribution rates for the Massachusetts Paid Family and Medical Leave (PFML) program. Employees must receive notice of the 2025 contribution rates on or before December 2, 2024. The Department of Family and Medical Leave (DFML) has published updated Rate Sheets that includes the required information. The DFML has also issued an updated poster, as well as updated notices regarding PFML that employers must provide to new employees.
The Rate Sheets, Poster, and Notices can all be accessed here.
Updated Rate Sheets
On November 13, 2024, the DFML issued updated Rate Sheets that reflect the 2025 PFML contribution rates. As previously reported, the overall contribution rates remained the same at .88% of eligible wages for employers with 25 or more employees and .46% for employers with fewer than 25 employees. Additional information about the contribution rates can be found here. Employers must complete the rate sheets before distributing them, indicating the percentage of the contribution that the employer will make and the percentage of the contribution that will be deducted from the employee's pay.
The 2025 Rate Sheets must be provided to all Massachusetts employees. Notice should be made in the same manner used to inform employees of other policies and updates. Employers are not required to obtain a signed acknowledgment but should use a delivery method that allows them to demonstrate that the Rate Sheets were distributed.
Updated Poster
The DFML has issued an updated poster that must be posted by all Massachusetts employers in a conspicuous place in the workplace. The only substantive update to the 2025 poster is that it now reflects the 2025 maximum weekly benefit amount of $1,170.64 (up from the 2024 maximum of $1,149.90).
Updated Notices for New Employees
The DFML has also issued updated Notices that must be provided to new employees within 30 days of their hire. The law requires that employees acknowledge or decline to acknowledge that they received this notice by signing an acknowledgment form which their employer must retain.
The changes to the Notice include the updated maximum benefit amount and revisions to the section of the Notice addressing topping off of PFML benefit payments. The updated language reflects the amendment (effective November 2023) allowing employees to use accrued paid leave (vacation, sick leave, PTO, personal time, etc.) to top off their PFML benefit when receiving PFML benefits through the state program. Note: Employers may not require use of accrued paid leave either before or during PFML.
With respect to topping off, the updated Notice includes language stating that employees "will need to follow [their] employer's policies regarding earning and using time." Accordingly, it is important for employers to ensure that their paid time off policies provide clear guidance to employees regarding the use of such time. One of the issues employers will want to address is whether these time off benefits are available during extended absences, such as those covered by the PFML law. This can be particularly important for employers who have unlimited time off policies. If such employers do not specify that there is a limit to how much paid time off can be used during a leave of absence, they risk that employees may be able to top up their PFML benefit for the duration of their leave.
The Notice also states that an employer's PTO policy may not discriminate against employees for exercising a right to which they are entitled under the PFML program. This requires employers to structure their time off and leave policies in a way that does not disadvantage employees taking PFML.
Enforcement
The DFML has indicated that it will continue to conduct PFML audits that require employers to demonstrate that they have met the law's notice requirements. The penalties for failing to provide notice can be costly; the penalty for a first violation is $50 per employee, and for subsequent violations, $300 per employee.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
