Labor, Employment and Employee Benefits Law Group
ATTORNEYS:
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Massachusetts Delays Family and Medical Leave Act Payroll Contribution Three Months
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Late Tuesday evening, news broke from Beacon Hill that the payroll tax funding the Paid Family and Medical Leave Act - scheduled to take effect on July 1st - is being delayed three months to October 1, 2019. According to a joint statement issued by Governor Baker, House Speaker DeLeo, and Senate President Spilka, the delay is intended "[t]o ensure businesses have adequate time to implement the state's Paid Family and Medical Leave program...." It is expected that the legislature will pass, and the Governor will sign, an emergency bill over the next few days to officially delay the implementation of the payroll tax.
The joint statement also foreshadowed the legislature's intent to "adopt technical changes to clarify program design." At this time, it is not clear what "technical changes" the legislature is considering.
It appears, however, that to maintain the amount of pre-funding and not reduce total contributions paid to the new family and medical leave trust fund, the contribution rate will be increased from .63 percent to .75 percent of wages when withholding of contribution amounts begin on October 1, 2019.
We will continue to monitor all developments regarding the Paid Family and Medical Leave Act. Please contact any member of the Labor, Employment and Employee Benefits Group if you have any questions.
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Worcester Office
Mercantile Center
100 Front Street
Worcester, MA 01608
t 508.791.8500
f 508.791.8502
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Westborough Office
1800 West Park Drive
Suite 400
Westborough, MA 01581
t 508.898.1501
f 508.898.1502
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Boston Office
175 Federal Street
Suite 1220
Boston, MA 02110
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Mirick O'Connell is a full-service law firm with offices in Worcester, Westborough and Boston, Massachusetts. The Firm's principal practice groups include Business;
Construction Law; Creditors' Rights, Bankruptcy and Reorganization; Elder Law; Family Law and Divorce; Health Law; Intellectual Property; Labor, Employment and Employee Benefits; Land Use and Environmental Law; Litigation; Personal Injury; Public and Municipal Law; and Trusts and Estates.
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This client alert is intended to inform you of developments in the law and to provide information of general interest. It is not intended to constitute legal advice regarding a client's specific legal issues and should not be relied upon as such. This client alert may be considered advertising under the rules of the Massachusetts Supreme Judicial Court.
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This client alert is for informational purposes only. It is not intended to be a solicitation or offer to provide products or service to any individual or entity, including to a "data subject" as that term is defined by the European Union General Data Protection Regulations.
©2019 Mirick, O'Connell, DeMallie & Lougee, LLP. All Rights Reserved.
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