Massachusetts Halts Paid Family and Medical Leave

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Last summer, Governor Baker signed “An Act Relative to Minimum Wage, Paid Family Medical Leave, and the Sales Tax Holiday” (H.4640), which in part created a new Paid Family and Medical Leave program in the Commonwealth.  We provided further program details in a previous post.

The program was slated to be funded by a payroll tax on employers starting July 1, 2019.  Under the Act, the Department of Family and Medical Leave would collect a 0.63% payroll tax on employers to fund the estimated $800 million Paid Family and Medical Leave program.

However, the Governor and state legislators have recently confirmed a three-month delay in the implementation of the program.  The extension delays employer contributions until October 1, 2019 and gives employers more time to understand the rules and inform its employees.

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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