E-Alerts
Massachusetts High Court Affirms That Benefits Need Not Accrue During PFMLA Leave
In a recent decision interpreting the Massachusetts Paid Family and Medical Leave Act (the “PFMLA”), the Massachusetts Supreme Judicial Court (“SJC”) ruled that the PFMLA does not require an employer to allow employees to continue to accrue benefits, such as sick and vacation time, during a PFMLA leave.
Overview Of PFMLA
Since 2021, Massachusetts employers have been required under the PFMLA to provide up to 26 weeks of paid, job-protected leave annually to employees to care for themselves or their family members during qualifying events, including medical leave for serious health conditions, as well as family leave for bonding with a newborn, adopting a child, caring for a family member with a serious health condition, or assisting with matters related to a family member’s deployment for active-duty military service.
Eligible employees receive a portion of their regular wages for up to 26 weeks of leave, depending on the type of leave taken, with benefits paid from the state PFMLA trust fund, which is funded through contributions from both employers and employees. Alternatively, an employer may obtain an exemption from participation in the trust fund by adopting an approved private plan providing equally (or more) favorable PFMLA benefits to its employees.
The Bodge Case
The SJC’s decision, Bodge v. Commonwealth, involved a challenge by a group of Massachusetts State Police troopers to the State Police’s policy of not providing for continued accrual of employee benefits during PFMLA leaves.
The plaintiff troopers sought to take leave in connection with the birth of a child – a covered reason under the PFMLA. After they were informed of the State Police’s policy denying continued accrual of benefits (including seniority, length-of service credit, and vacation and sick time) during PFMLA leave, the plaintiffs sued, alleging that the policy violated the PFMLA.
The SJC disagreed, finding that the statutory language does not grant such accrual rights during PFMLA leave. Instead, the SJC held, the PFMLA simply “ensures that any such rights that the employee already has are not affected while the employee is on leave.”
In reaching this decision, the SJC noted that the PFMLA explicitly states that employees must be allowed to maintain their health insurance during leave, but that the statute includes no such language relating to accrued benefits, such as length-of-service credits and vacation and sick time. Thus, in the Court’s view, the PFMLA “thereby draw[s] a distinction between health insurance benefits and all other benefits.”
Key Takeaways
The SJC’s decision confirms that employers are not required to permit employees to continue to accrue benefits such as seniority or vacation and sick time while employees are out on PFMLA leave. By contrast, an employer must maintain health insurance coverage for an employee on PFMLA leave, including the employer’s regular monthly contributions to the employee’s health insurance premiums. Of course, an employee also must be reinstated to his or her previous position, or an equivalent role, after the employee’s PFMLA leave.
It is also important to note that while the PFMLA establishes minimum standards, employers can choose to implement more generous policies – for instance, voluntarily allowing vacation time to accrue during PFMLA leave. Whether an employer chooses to do so, or to keep to the letter of what the statute requires, it is vital that the employer administer its leave policies consistently and clearly communicate those policies to its employees.
* * *
If you have questions about the Bodge decision or need assistance reviewing and updating your organization’s Massachusetts PFMLA policies and practices, please feel free to contact one of our experienced employment lawyers.