The Massachusetts Department of Family and Medical Leave has announced changes to the employer contribution rates and benefit amounts under the Paid Family and Medical Leave Act (PFMLA) effective January 1, 2024.

Each October 1st, the Department of Family and Medical Leave is required to update employer contribution rates and benefit amounts for the upcoming year. The change in benefit amounts is based on the average weekly wage in the Commonwealth and the change in contribution rates is to be made to ensure the Fund’s solvency for paying out benefits.

Following are the announced changes to the PFMLA:

1. The benefit contribution rate for employers has been increased to .88% of eligible wages. Currently, the benefit contribution rate is .63% of eligible wages (which are wages up to the social security contribution limit).

The specific benefit contribution rates are as follows:

  1. For employers with 25 or more covered individuals, for the family leave contribution, the employer can withhold .18% of eligible wages. As for the medical leave contribution, the employer can withhold .28% of eligible wages and is responsible for paying .42% of eligible wages directly.
  2. For employers with 24 or fewer covered individuals, for the family leave contribution, the employer can withhold .18% of eligible wages. As for the medical leave contribution, the employer can withhold .28% of eligible wages. For these smaller employers, the employer has no obligation to pay the employer share for medical leave.

These new contribution rates apply equally to employers that have private plans, so all employers must review and update their plans and contribution rates for January 1, 2024.

2. The maximum weekly benefit amount will be $1,144.90 per week.

The Department increased the maximum weekly benefit amount available to individuals to $1,144.90. This benefit is keyed off the Commonwealth’s average weekly wage and is an increase from the current amount, which is $1,129.82 a week.

For additional guidance, please contact a Jackson Lewis attorney.

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Photo of Brian E. Lewis Brian E. Lewis

Brian E. Lewis is a principal in the Boston, Massachusetts, office of Jackson Lewis P.C. He exclusively represents management in all facets of workplace law.

Brian routinely advises clients regarding day-to-day employment issues, such as employee discipline and discharge, disability management issues, proper…

Brian E. Lewis is a principal in the Boston, Massachusetts, office of Jackson Lewis P.C. He exclusively represents management in all facets of workplace law.

Brian routinely advises clients regarding day-to-day employment issues, such as employee discipline and discharge, disability management issues, proper payment of wages, reductions in force, and restrictive covenants. Brian also has experience in representing clients on traditional labor law issues and has appeared before the National Labor Relations Board. He also regularly conducts training programs for employers on a variety of employment-related topics, and is a regular speaker at industry seminars on labor and employment law issues.

Brian has extensive experience representing employers in all types of employment litigation matters, such as claims alleging employment discrimination, wrongful discharge, sexual harassment, and failure to pay wages. Brian also has litigated numerous wage and hour law cases. Specifically, Brian has advised and defended companies in class actions alleging violations of state wage law and collective actions alleging violations of the federal Fair Labor Standards Act. Brian also advises companies on state and federal prevailing wage law and defends companies in audits conducted by the Massachusetts Attorney General’s Office and other agencies.

Brian regularly litigates in both state and federal court, as well as before various governmental agencies, including the Massachusetts Commission Against Discrimination, the Massachusetts Attorney General’s Office, the United States Equal Employment Opportunity Commission, the United States Department of Labor, and the Occupational Safety and Health Administration.