Boston Compliance Reminder: MA Paid Family and Medical Leave (PFML)

Panko Compliance · June 13, 2026

## What it is Massachusetts Paid Family and Medical Leave (PFML) is a state-administered benefit funded by mandatory contributions from employers and employees. It provides up to 12 weeks of paid family leave + up to 20 weeks of paid medical leave (capped at 26 total weeks per benefit year). Benefits started July 2021; the rate has adjusted annually since. ## What compliance looks like 1. Register with DFML. Every MA employer must register with the Department of Family and Medical Leave and report wages quarterly through MassTaxConnect. 2. Contribute. For 2026, total contribution is 0.88% of wages up to the Social Security wage base. Split between employer + employee per the statutory formula. Employers with 25+ MA workers pay the employer share (~40% of total contribution); smaller employers can pass the full amount to employees. 3. Withhold from employee paychecks. Compute + remit quarterly with state tax filings. 4. Notice. Provide written notice of PFML rights at hire AND post the official MA PFML poster in the workplace. 5. Don't retaliate. Employees on PFML have job protection — must be reinstated to the same or equivalent position. 6. Coordinate with private plans. Some employers exempt out by providing equivalent private plan benefits, but the exemption requires DFML pre-approval, not unilateral employer decision. 7. Records. Keep contribution + leave records for 3 years. ## Penalties for non-compliance Failure to register or report: $1,000 per occurrence + back contributions + interest. Failure to remit contributions: penalty up to 24% of unpaid contributions + interest. Retaliation against an employee using PFML: presumption of retaliation, back pay + reinstatement + 3× damages + attorney fees. Failure to post notice: per-occurrence penalties under DFML rules. DFML audits + enforces. Cases are common, but the rules are clear enough that compliance is achievable with a competent payroll provider (Gusto, Justworks, ADP all handle PFML by default). --- Full guide with sources: https://alerts.getpanko.app/compliance/boston/paid-family-medical-leave

Source: Panko Compliance · View original →