Beginning January 2021, most workers in Massachusetts will be eligible to receive up to 12 weeks of paid family leave and up to 20 weeks of paid medical leave through the Massachusetts Paid Family Medical Leave (“MA PFML” or “the Program”). The Massachusetts Department of Family and Medical Leave (“DFML”) has recently clarified the qualification requirements for an employer to receive reimbursement for benefits paid as part of an employer’s private temporary disability, family or medical leave policy.

Employer Programs Eligible for Reimbursement

An employer that has a private benefit plan, but has not otherwise received an exemption to the MA PFML Program from the Massachusetts Department of Revenue, may be eligible to be reimbursed for those paid benefits (see M.G.L. c. 175M, Section 3(c)). For additional information about MA PFML Private Plan Exemptions, please visit our prior article.

To qualify for reimbursement, an employer’s private program must:

  1. Grant workers benefits for one of the MA PFML’s qualifying reasons; and
  2. Be provided separately from other types of leave that the employer offers.

According to the guidance released, reimbursement will not be available for payments made to an employee in the event the employee uses sick leave, annual leave, vacation, or PTO to cover their absence.

Employers with private benefit plans that do not otherwise obtain a private plan exemption (and that must make MA PFML contributions) should be aware of the opportunity to qualify for the reimbursement program. It is anticipated that the DFML will continue to release guidance on MA PFML, including information on how employers may apply for these reimbursements.


Reimbursements for Qualifying Paid Leave Plans

Information for Employers

The information and materials on this blog are provided for informational purposes only and are not intended to constitute legal or tax advice. Information provided in this blog may not reflect the most current legal developments and may vary by jurisdiction. The content on this blog is for general informational purposes only and does not apply to any particular facts or circumstances. The use of this blog does not in any way establish an attorney-client relationship, nor should any such relationship be implied, and the contents do not constitute legal or tax advice. If you require legal or tax advice, please consult with a licensed attorney or tax professional in your jurisdiction. The contributing authors expressly disclaim all liability to any persons or entities with respect to any action or inaction based on the contents of this blog.

Lizet Ramirez – Lizet is a Client Compliance Manager for Sequoia One, where she works with our clients to optimize and streamline benefits compliance. In her free time, Lizet enjoys live music, travel, hiking and spa days.