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Guidance for an employer with an approved exemption that dissolves or undergoes an acquisition or merger

Employers with approved exemptions need to follow certain steps if they are dissolved, or undergo an acquisition or merger.

Table of Contents

General overview

An employer or covered business entity that dissolves or undergoes an acquisition or merger after the approval of an exemption and before the renewal period should notify the Department of Family and Medical Leave within 60 calendar days of the dissolution, acquisition, or merger. The business should provide documentation to allow the Department to determine:  

  • The effective date of the termination of the private plan, 

  • The name and Federal Employer Identification Number (FEIN) of any acquiring or affiliate organization that will be assuming the employees and covered contract workers affected by the dissolution, acquisition or merger 

The effective date of termination of the business’ private plan through dissolution, acquisition or merger  will be on the first day of the first quarter immediately following the date of acceptance by the Department.  

An employer or covered business entity that dissolves or undergoes an acquisition or merger after the approval of an exemption and before the renewal period may be subject to retroactive contributions or for costs associated with the Department having to pay benefits for your employees.  

Employers or covered business entities should continue to provide paid leave benefits to covered individuals for the entire leave duration for leave filed under a private plan prior to the effective date of dissolution, acquisition, or merger.  

How to inform the Department

To inform the Department, you must send an e-message via your MassTaxConnect account with a letter on company letter head. The letter should include:  

  • The company name and Federal Employer Identification Number that is going through the dissolution, acquisition or merger;  

  • The effective date of the dissolution, acquisition, or merger; and 

  • The name and Federal Employer Identification Number of any acquiring or affiliate organization that will be assuming the employees and covered contract workers affected by the dissolution, acquisition or merger; 

Additional documents that the Department may require include:  

  • Copies of documentation supporting the occurrence of the dissolution, acquisition, or merger including bill of sale or purchase and sale agreements, 

  • Registration documentation from the Secretary of State Corporations division that the dissolution, acquisition or merger has been recorded 

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