Benefit requirements for private paid leave plan exemptions

To be eligible for an exemption, employers must offer an approved private plan with paid leave benefits that are equal to or more generous than those provided under the Paid Family and Medical Leave (PFML) program. Exemptions are only available to employers, not individuals.

General overview

If you're an employer who provides a paid leave benefit to your workforce, you may be eligible to receive an exemption from collecting, remitting, and paying contributions under the state's Paid Family and Medical Leave (PFML) law. Employers can apply for an exemption through the Department of Revenue's MassTaxConnect.  

Certain employers are automatically excluded and do not need to apply for an exemption.  

There are two types of private plaid leave plans: 

• Purchased private paid leave plans 
• Self-insured private paid leave plans 

Your approved private plan must offer paid leave benefits greater than or equal to the benefits provided by the paid leave law to be granted an exemption. This means your approved plan must meet all the minimum requirements listed below and must not cost your workers more than they would be required to contribute to the state plan under the paid leave law.  Even if your exemption is approved, you must continue to comply with an employer's duty under M.G.L. c. 175M, sec. 4 to display workplace posters about the PFML law and provide your workforce with written notice of PFML benefits, contribution rates, and other provisions.  

If your benefits don’t meet the criteria described below or you choose not to apply for an exemption, there may be an opportunity to receive reimbursement for certain types of paid leave plans.  

Minimum family leave benefit requirements

To qualify for an exemption from family leave contributions, your private plan must provide the following:  

• All covered individuals (full-time, part-time, permanent, or seasonal) are eligible for family leave benefits  
• A weekly paid benefit amount that is greater than or equal to the benefit provided by the Paid Family and Medical Leave program 
• A minimum of 26 weeks of paid leave during the benefit year to provide care to a family member, as defined by paid leave law, with a serious health condition suffered while on active duty in the armed forces  
• A minimum of 12 weeks of paid leave during the benefit year if their spouse, child, or parent is a current member of the Armed Forces (including the National Guard and reserves) and is on covered active duty or notified of an impending call or order to covered active duty  
• A minimum of 12 weeks of paid leave during the benefit year to provide care to a family member, as defined by paid leave law, with a serious health condition  
• A minimum of 12 weeks of paid leave during the benefit year to bond with a child during the first 12 months after a child’s birth, or the first 12 months after adoption or foster placement of a child under the age of 18  
• Job protection while the covered individual is on qualified leave  
• Continued employer contributions to employment-related health insurance benefits, if any, at the level and under the conditions coverage would have been provided if the covered individual had continued working continuously for the duration of qualified leave  
• Leave may be taken intermittently or on a reduced leave schedule, with the weekly benefit amount being prorated  
• Your plan specifically states that all presumptions shall be made in favor of the availability of leave and the payment of leave benefits  

Minimum medical leave benefit requirements

To qualify for an exemption from medical leave contributions, your private plan must provide the following:  

• All covered individuals (full-time, part-time, permanent, or seasonal) are eligible for medical leave benefits  
• A minimum of 20 weeks of paid medical leave in a benefit year if a covered individual is unable to work due to a serious health condition  
• A weekly paid benefit amount that is greater than or equal to the benefit provided by the Paid Family and Medical Leave program 
• Job protection while the covered individual is on qualified leave  
• Continued employer contributions to employment-related health insurance benefits, if any, at the level and under the conditions coverage would have been provided if the covered individual had continued working continuously for the duration of qualified leave  
• Leave may be taken intermittently or on a reduced leave schedule if medically necessary, with the weekly benefit amount being prorated  
• Your plan specifically states that all presumptions shall be made in favor of the availability of leave and the payment of leave benefits

Providing top off benefits

Effective November 1, 2023, if you have a private plan exemption for family and/or medical leave, your self-funded private plan or insurance provider must provide the option for your employees to top off their benefit amount using employer provided PTO.  

Learn more about top off benefits