Massachusetts Paid Family and Medical Leave (MAPFML) Update

Massachusetts Paid Family and Medical Leave (MAPFML) Update

On September 29, 2023, the Massachusetts Department of Family and Medical Leave released important updates for 2024 regarding the cost of contributions for employer groups enrolled in the public program and the weekly benefit maximum applicable to public and private plans.

Contribution Rates for 2024:

Effective January 1, 2024, the total contribution rate for the public plan, for employers with 25 or more employees, will be 0.88% of eligible wages. This represents an increase of 39.7% over the current rate of 0.63%. The increase in the required contribution is being driven by a significant increase in the number of claimants, and the total dollars paid out in claims, when compared to the prior year.

Contribution Structure (25 or more employees):

• Total Contribution: 0.88%
  • Medical Contribution: 0.70%
    • Employer Share:0.42%
    • Employee Share: 0.28%
  • Family Contribution: 0.18%
    • Employer Share: 0%
    • Employee Share: 0.18%

Contribution Structure (25 or fewer employees):

• Total Contribution: 0.46%
  • Medical Contribution: 0.28%
    • Employer Share:0%
    • Employee Share: 0.28%
  • Family Contribution: 0.18%
    • Employer Share: 0%
    • Employee Share: 0.18%

Maximum Weekly Benefit for 2024
In addition, the weekly maximum benefit amount will increase from the current maximum of $1,129.32 per week to a maximum benefit of $1,149.90 per week. Please note that this modest increase of reflects a similar increase in the State Average Weekly Wage (SAWW). This amount increased to $1,796.72, up from $1,765.34 in the prior period, and is used annually to calculate the weekly benefit for qualified leaves under MA PFML law.

Pending Amendment for Public Plan Benefits
During the budget process for Fiscal Year 2024, Governor Maura Healey approved an amendment to the current paid leave law that would allow employees who qualify for benefits to “top off” their weekly benefit with accrued sick and/or vacation pay. This amendment also applies to accrued pay for any leave provided under a collective bargaining agreement. Employees on leave may request accrued pay in an amount so as not to exceed 100% of their pre-leave earnings when combining MA PFML benefit payments and accrued leave pay. Employers that comply with the mandate through a private program, either self-insured or through insurance, have had this option available in their plans since inception. Regulations are expected to be released in November of this year and the application of the new rule will be retroactive to all plans as of July 1, 2023.

Private Plan Impact
Please note that for employers with private plan exemptions, if your plan is insured, your insurer will be releasing a new contribution rate for CY2024 in the next several weeks. This rate may be different than the State’s public plan option. Employers with private plans are allowed to require employees to contribute to the cost of coverage, provided that costs for employees are no greater than their costs would be if they were participating in the State’s public plan. Private plans will comply with the updated weekly benefit maximum, effective on January 1, 2024, and will be required to comply with the “top off” rule if they are not already allowing for use of accrued pay.

Please note, for groups that have exemptions for the current year, you will need to renew your exemption via your MassTaxConnect account to continue to maintain a private plan in the new calendar year. You may begin this process during the quarter prior to the expiration of your current exemption. For example, if your exemption is expiring on December 31, 2023, the exemption renewal process began on October 1, 2023.

To see updates other states have made to their paid family leave programs for 2024, please see our articles, Minnesota Passes Paid Family and Medical Leave and Delays and Changes to Maryland Paid Leave Law. If you have any questions, please contact a member of the OneDigital team.