Massachusetts Paid Family and Medical Leave Contribution Rate and Benefit Changes; Notices to Employees Required

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As noted in a recent alert, important updates to the Massachusetts Paid Family and Medical Leave law (“MA PFML”) are going into effect on January 1, 2022.  Specifically, maximum weekly benefits under the MA PFML are increasing from $850 to $1,084.31 per week.  Employer contribution rates will be lowered; for employers with 25 or more covered individuals, the contribution rate will decrease to 0.68% of eligible employee wages, while for employers with fewer than 25 covered individuals, the contribution rate will be reduced to 0.344%.

Given the January 1, 2022 effective date, employers must communicate these changes to current employees as soon as possible.  Copies of such notifications can be found here.  In addition to providing current employees with such notices, employers are required to provide these notifications to all new employees within 30 days of their hire.  All notices may be provided in hard copy or electronic form.  The notices must include the opportunity for the employee to acknowledge or decline receipt; employers should retain such forms per their internal document retention policy.  Employers are also required to display posters setting forth MA PFML benefits at their workplace.  Here is an acceptable form of the 2022 PFML mandatory workplace poster.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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