The first year of anything is hard and it should be expected that changes become necessary along the way. Massachusetts’ Paid Family Medical Leave is no exception. Since our last blog on this topic in July, which discussed the extension of benefits under the program, the Department of Family and Medical Leave (DFML) has done some reflection on how the program has worked to date and made some noteworthy changes for the upcoming calendar year.
FY2021 Annual Report
The DFML published data for Fiscal Year 2021, which includes the initial rollout of the program from January 1 through June 30. In that period, the DFML approved 43,440 applications and paid out benefits totaling $167,915,781.01, approximately 60% for medical leave and 40% for parental leave.
Interestingly, the DFML notes that they denied 9,989 applications, which represent 22.99% of all applications received. Of those, 4,785 denials were issued because the applicants failed to submit, or had insufficient, documentation to support leave. The DFML also denied 2,113 applications because the applicants’ employers participated in private plans or were exempt from the program altogether.
Data regarding applicants provided a picture as to who was seeking leave. There were twice as many female applicants as males, and almost half of the applications were from people aged 30–39. The applicants’ average weekly wage was $1,434.52 and the average duration of the leaves taken was 53 days.
Contribution Rates
For 2021, the contribution rate for employers with 25 or more covered individuals was 0.78% of eligible wages and for those with less than 25 covered employees, a rate of 0.378%. The Department recently announced that for the calendar year 2022, those contribution rates would be dropping.
For those with less than 25 covered employees, the rate will drop to 0.344%, and for those with more than 25 covered employees, the rate will also decrease to 0.68%. Updated posters and notices for the rate decreases will be available from the DFML on November 1.
Benefit Amounts
The amount of benefits an individual is eligible to receive is based on their own average weekly wage and the average weekly wage of workers throughout Massachusetts. The calculation depends on the following:
- The part of your average weekly wage that is less than or equal to 50% of the average weekly wage for Commonwealth workers will be covered at a rate of 80%
- If part of your average weekly wage is greater than 50% of the average weekly wage for Commonwealth workers, it will be covered at a rate of 50%, up to the maximum allowed benefit amount
For 2021, the average weekly wage in Massachusetts is $1,487.78 and the maximum allowed weekly benefit is $850. Effective January 1, 2022, the average weekly wage will increase to $1,694.24 and the maximum allowed weekly benefit will rise to $1,084.31. Updated posters and notices for the benefit increases will be available from the DFML on November 1.
Private Plan Exemptions
If an employer held a private plan exemption and has decided not to renew, the employer must provide notice to all covered individuals and the DFML at least 30 days before the exemption expires.
If the exemption was effective before January 1, 2021, the employer may go through one renewal cycle to avoid paying retroactive contributions. If the employer cancels the private plan during the renewal cycle, they will be forced to pay retroactive contributions back to the effective date of the initial exemption. However, if the renewal cycle is complete and the employer cancels the private plan, then no retroactive contributions will be owed.
Updated Form
The DFML has updated the form for Certification of Your Serious Health Condition, specifically regarding pregnancy and childbirth-related conditions.
If you have questions about how to best manage requests for leave at your place of business or regarding more specific details of PFML, please feel free to reach out to our attorneys for advice and assistance.