Massachusetts Allows Paid Leave Top-Up to 100% Wage Replacement

What Changed

Massachusetts has updated its Paid Family and Medical Leave (PFML) program to allow employees to use their employer-provided accrued paid leave (such as vacation, PTO, or sick time) to supplement PFML benefits up to 100% of their regular wage replacement. Previously, employees could not top up their PFML benefits with other paid leave, often resulting in a gap between their benefit amount and their full wages.

This change means employees taking PFML leave can now coordinate employer-provided benefits with state benefits to avoid a reduction in take-home pay during their leave period.

Who Is Affected

All Massachusetts employers and employees participating in the state PFML program are affected. To be eligible for PFML benefits, employees must have earned at least $6,000 in the prior 12 months (this threshold increases to $6,300 for 2024). The top-up provision applies to employees who have accrued paid leave available through their employer.

Where It Applies

Massachusetts statewide. This applies to all employees covered under the Massachusetts PFML program.

When It Takes Effect

November 1, 2023. Employees taking PFML leave on or after this date may begin supplementing their benefits with accrued paid leave.

Why It Matters

The PFML wage replacement formula does not provide 100% of wages for most employees, which has been a significant concern for workers who cannot afford a pay cut during family or medical leave. This update removes a practical barrier to using the program by allowing coordination of benefits. For employers, this means adjusting payroll and leave administration processes to handle the supplementation correctly — the combined amount of PFML benefits and employer-paid leave cannot exceed the employee's average weekly wage.

The Humareso Take

This is a welcome quality-of-life improvement for Massachusetts employees. The practical impact is significant — many employees were reluctant to take PFML leave because of the income gap. Now they can bridge that gap with their own accrued time. For employers, the key is making sure your payroll team understands the coordination mechanics and that your leave policies reflect this change. It is a good idea to update your PFML notices and handbook language to explain the top-up option clearly.

Recommended Action Steps

1. Update your PFML policy and employee handbook to reflect the option for employees to supplement PFML benefits with accrued paid leave up to 100% wage replacement.

2. Coordinate with your payroll team to ensure proper calculation and administration of supplemental payments during PFML leave.

3. Notify employees of this new option, particularly those currently on or planning to take PFML leave.

4. Review your leave tracking systems to ensure they can accurately record concurrent use of PFML benefits and employer-paid leave.

5. Contact your Humareso representative to review your Massachusetts leave policies and ensure proper benefit coordination procedures are in place.