Employees taking Paid Family and Medical Leave (PFML) in Massachusetts now have the option to “top off” the benefits from the state program with accrued sick or vacation pay (paid time off or PTO). As of November 1, 2023, employees may use PTO to cover the difference between PFML benefits and their full pay.    

While this is a welcome change for employees, it raises many questions from employers.  In early December, the Massachusetts Department of Family and Medical Leave (DFML) added a section to its website’s FAQs to address some of the issues.  The new employer FAQs may be found here, and the FAQs for employees are here. 

The state describes topping off as follows: 

Topping off allows employees on PFML to supplement their weekly PFML benefit with their accrued PTO, up to the employee’s Individual Average Weekly Wage (IAWW). Example: An employee’s IAWW = $2,000 and the employee has an approved PFML application that pays $1,100 per week. The employee may top off that amount with PTO up to $900, if available.  

The IAWW is defined as follows: 

An employee’s “Individual Average Weekly Wage” (IAWW) is calculated by the Department of Family and Medical Leave (DFML) from the amount an employee earned in the last four completed calendar quarters before the start of the employee’s benefit year. The IAWW is the average amount the employee earned per week in the two quarters when the employee earned the most money (or the one quarter with the most money if the employee only worked in two or fewer quarters). The IAWW is an average and not based on just the employee’s current weekly wage. 

Employers must give employees the option of topping off with PTO.  But there are exceptions to this requirement if an employer’s policy would not otherwise allow a type of paid time off to be used for that purpose.  For example, one of the FAQs asks whether an employee can use sick leave to top off family bonding leave benefits.  The answer indicates that the employer’s policy on the use of sick time will govern, and that it is unlikely that the sick time can be used to top off. 

Another question answered in the FAQs is whether an employee may use holiday pay to top off if the holiday occurs during the leave.  The DFML’s response again indicates that the employer’s policy will govern, as the use of paid leave provided under an employer’s policy is “subject to the accrual and use rules of an employer’s PTO policies.”  Holiday policies do not always address holiday pay during leaves of absence, so employers may want to revise their policies to indicate whether holiday pay may be used in this way. 

There are many questions yet unanswered by the FAQs about topping off, but it is clear from the responses that an employer’s policies will impact what paid time off is available for this purpose. 

AIM members with questions about PFML topping off or any other human resources matter may contact the AIM HR Helpline at 800-470-6277.