IMPORTANT UPDATE TO REQUIREMENTS UNDER THE MASSACHUSETTS PAID FAMILY AND MEDICAL LEAVE ACT AND SALARY LEVEL FOR HOURLY VS. SALARY ANALYSIS
No Accrual Of Benefits Required While On PFML
Recently, the Massachusetts Supreme Judicial Court ruled that the Massachusetts Paid Family and Medical Leave Act does not require that employees be allowed to continue to accrue benefits such as vacation, sick leave, and length-of-service credit while on PFML.
What should you do in response to this change? It’s time to review your leave policies. Let’s make sure that your leave policies are up-to-date and clearly define the rights of the employee as well as the obligations of your business during this leave. Employers may choose to continue to provide such benefit accrual (may be easier administratively), but they are no longer required to do so.
Communicate with Employees
As always, clear communication with your employees Is key for effective employee relations. When you become aware that an employee has applied for PFML, take the initiative to inform him/her/them what benefits will and will not accrue during their absence. This timely transparency can help avoid misunderstandings and even potential legal actions. ALSO, employees should be informed (at the inception of the leave) that they are responsible for maintaining their share of the monthly health insurance premium, if applicable.
Salary versus Hourly
A November 15th federal court decision has struck down the salary level increase scheduled for January 1, 2025. In addition, the July 1st increase that most employers have already implemented has also been struck down. Subsequently, going forward, employers are back to the 2019 salary test applied to exempt / salaried employees, which is $684.00 per week. Key factors to the hourly versus salary analysis is the nature of the duties performed in the executive, administrative and professional exemption categories.
Feel free to contact us should you have any questions. We are available to assist in updating your policies to reflect the changes outlined above. In addition, we can help you determine if your employees should be categorized as non-exempt or exempt or assist you with any other employment needs you may have.
Attorney Helene Horn Figman combines specialized legal knowledge in employment law with the skills and perspectives uniquely suited to Human Resources Consulting www.figmanlaw.com
Information about her anti-harassment and anti-discrimination education programs can be found at www.workplaceawarenesstraining.com
This article has been prepared by the Law Offices of Helene Horn Figman, P.C. for general informational purposes only. It does not constitute legal advice and is presented without any representation of warranty whatsoever.
LAW OFFICES OF HELENE HORN FIGMAN P.C.
Human Resources Consulting and Employment Law Compliance
45 Bristol Drive Suite 207
South Easton, MA 02375
hfigman@figmanlaw.com
www.figmanlaw.com
(508) 238-2700
This law office does not provide tax counsel, accounting advice or employee benefit guidance.