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Posted on August 7, 2023
Question
We have an employee who will soon go out on medical leave, and she has saved her vacation time to cover any time that is not covered by Paid Family and Medical Leave (PFML) benefits. Our company is in the state program. Is there any way she can use her vacation time to supplement the PFML benefits?
Answer
The Massachusetts Department of Family Medical Leave (DFML) has consistently denied the use of paid time off (PTO) to supplement Paid Family Medical Leave (PFML) benefits. But there is a provision in the new state budget awaiting Governor Healey’s signature that will allow employees to use their PTO to supplement PFML benefits. The Governor may amend or veto the budget, but the change in the PFML law seems to be on track for passage according to the AIM Government Affairs team.
The PFML law, M.G.L. ch. 175M, §3, currently allows employees to “top off” their benefits only to the amount of their average weekly wage. The DFML permits supplementing with wage replacement from “(i) a temporary disability policy or program of an employer; or (ii) a paid family, or medical leave policy of an employer,” if the combined amount does not exceed the employee’s average weekly wage.
The provision in the new state budget will add a third category of payment that can be used to supplement PFML benefits: (iii) any accrued sick or vacation pay or other paid leave provided under an employer policy, including, but not limited to, any leave provided under a collective bargaining agreement.
This will be a welcome change for employers and employees. The use of vacation during leaves may ultimately reduce the amount of time that employees are away from work, and employees may receive full wage replacement for all or part of a PFML leave.
Members with questions about the PFML or any other human-resources matter may call the AIM HR Helpline at 800-470-6277.