October 21, 2020

Volume X, Number 295

October 20, 2020

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October 19, 2020

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Massachusetts Employers Receive New Guidance Regarding Reimbursement for Qualifying Paid Leave Plans Under the State’s PFML Law

The Massachusetts Department of Family and Medical Leave (“DFML”) continues to provide ongoing substantive and procedural guidance regarding the implementation of the state’s Paid Family and Medical Leave Program (“PFML”). As previously reported, prior guidance has addressed how to determine if an employer meets the 25-covered individual threshold for reporting purposes, whether to count visa holders as part of the workforce for PFML purposes. Last week, the DFML provided clarification as to the requirements for an employer to qualify for reimbursement for benefits that it has paid as part of its private paid temporary disability, family, or medical leave policy.

Policies and Programs Eligible for Reimbursement

Under Section 3 of the PFML law, a Massachusetts employer that has a private benefits plan, but has not otherwise received an exemption to the PFML contribution requirements may be eligible for reimbursement for its paid temporary disability, family, or medical leave benefits. An employer’s private policy or program will qualify for reimbursement if the policy or program meets two criteria.

First, the leave program or policy must be granted to workers for one of the PFML’s qualifying reasons. Qualifying reasons include taking leave to care for a family member with a serious health condition; to bond with a newborn child; to bond with a child after adoption or foster care placement; to manage family affairs when a family member is on active duty in the armed forces; or to manage a personal serious health condition.

Second, the program or policy must be separate from other types of leave that the employer offers, such as sick leave, annual leave, vacation, personal leave, or paid time off (“PTO”). Massachusetts employers that have not otherwise received an exemption to the PFML contributions and wish to apply for reimbursement for paid benefits provided to covered individuals will not be reimbursed for payments to a covered individual who has chosen to use sick leave, vacation, personal leave, or PTO to cover part of their absence to supplement their income. However, employers may seek such reimbursements for disability salary continuation policies or parental leave policies when the employee is receiving PFML benefits. Employers may, additionally, receive reimbursement for voluntary programs where employees donate leave time to fund a bank for the benefit of a co-worker experiencing a PFML qualifying reason.

Stay Alert for Further Guidance

The DFML is expected to provide further information about how to apply for reimbursements in the coming months leading up to the start of benefits in January 2021. Massachusetts employers should regularly check the DFML website for updates.

©2020 Epstein Becker & Green, P.C. All rights reserved.National Law Review, Volume X, Number 37


About this Author

Nancy Gunzenhauser, Labor Employment Attorney, Epstein Becker Law Firm

NANCY L. GUNZENHAUSER is an Associate in the Labor and Employment practice, in the New York office of Epstein Becker Green.

Ms. Gunzenhauser:

  • Counsels clients on compliance with EEO laws, the Americans with Disabilities Act, the Family and Medical Leave Act, worker classification issues, and other federal, state, and local statutes governing the workplace
  • Advises employers in all facets of the employment relationship, from pre-employment considerations and hiring to terminations and post...
Anastasia A. Regne, labor and employment law clerk, Epstein Becker
Law Clerk

ANASTASIA A. REGNE* is a Law Clerk – Admission Pending – in the Employment, Labor & Workforce Management practice, in the New York office of Epstein Becker Green. She will be focusing her practice on employment litigation, labor-management relations, and employment training, practices, and procedures.

Ms. Regne received her Juris Doctor, cum laude, from the Benjamin N. Cardozo School of Law, where she was the President of the Cardozo Labor & Employment Law Society, an editor of the Moot Court Honor Society, and an Alexander Fellow for the Honorable Laura Taylor Swain of the U.S. District Court for the Southern District of New York. During law school, Ms. Regne worked for a boutique matrimonial firm in New York, served as a student mediator in the Cardozo Law School Divorce Mediation Clinic, and was a legal intern at the Center for Battered Women’s Legal Services.

Before attending law school, Ms. Regne worked as a volunteer law clerk for the National Labor Relations Board (NLRB) Region 29 Office in Brooklyn. While at the NLRB, she investigated unfair labor practice charges brought against unions and employers.

*Application pending in New York.

Eric I. Emanuelson, Jr. Law Clerk New York
Law Clerk

ERIC I. EMANUELSON, JR.,* is a Law Clerk – Admission Pending – in the Employment, Labor & Workforce Management practice, in the New York office of Epstein Becker Green. He will be focusing his practice on disability laws, employment litigation, and employment training, practices, and procedures.

Prior to joining Epstein Becker Green, Mr. Emanuelson worked as a Legal Intern at the General Counsel’s Office of the largest labor union representing federal government employees. He also served as a Legislative Aide to Connecticut State Senator Edward Meyer.