Jordan Tirone
DeSanctis Insurance Agency, Inc.
PFML: A Reality of 2021 and Beyond
An issue that has had employers searching for answers and solutions has now officially gone live. 2021 has marked the official kickoff of the Massachusetts Paid Family and Medical Leave Act (PFML) and its details and business implications seem to be a bit of a “black box.” For this month’s “Insurance Based” article I tapped the shoulder of Chad DiBonaventura who is a Managing Director at Baystate Benefit Services out of Braintree Massachusetts to breakdown the topic. Chad has been a trusted advisor in the benefits space for over 15 years and has performed extensive research on PFML and its significance to employee benefits. This article will navigate around the practical concepts of PFML and how employers may be able to seek alternative solutions within compliance.
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ith all of the uncertainty that has taken place in 2020, employers in Massachusetts now must begin to implement the Paid Family and Medical Leave Act (PFML), which will prove to be one of the state’s most important legislative changes in regards to an employee’s ability to take leave. Eight other states along with D.C. have now enacted paid family and medical leave laws, which is an increase from four states in 2016. Nationally, this is a growing phenomenon with additional states sure to follow Massachusetts. On January 1, 2021, the Massachusetts Paid Family and Medical Leave Act (PFML) began providing leave benefits to employees meeting the eligibility requirements. Employers should have already begun to take steps to ensure that they are complying with the leave law. Specific items that should be addressed include implementing leave policies, updating employee handbooks, and for those employers utilizing a private plan, ensure that the exemption process has been completed.
Who is Eligible for the Massachusetts PFML? The PFML platform provides paid leave benefits to the following: • All eligible W-2 employees in Massachusetts • Some 1099-MISC workers FEBRUARY, 2021
In order for employees to be eligible to receive paid benefits, they must have earned $5,100 during the last four completed calendar quarters from Massachusetts employers and the earnings may be aggregated from different employers. Additional requirements could apply due to the complex formula being used by the State.
What are the Benefits Being Offered by the PFML? Beginning on January 1, 2021, employees may be entitled to up to: • 12 weeks of paid family leave in a benefit year for the birth, adoption, or foster care placement of a child, or because of a qualifying exigency arising out of the fact that a family member is on active duty or has been notified of an impending call to active duty in the Armed Forces; • 20 weeks of paid medical leave in a benefit year if they have a serious health condition that incapacitates them from work; • 26 weeks of paid family leave in a benefit year to care for a family member who is a covered service member undergoing medical treatment or otherwise addressing consequences continued on page 60
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