Massachusetts Supreme Judicial Court: No Benefit Accrual Required During PFML

What happened?

On September 13, 2024, the Massachusetts Supreme Judicial Court (SJC) ruled that the Massachusetts Paid Family and Medical Leave Act (PFMLA) does not require employers to allow employees to continue accruing benefits such as seniority, vacation, and sick time while on PFMLA leave

Quick Summary:

• The Massachusetts SJC ruled that employers are not required to allow employees to accrue benefits like seniority, vacation, and sick time while on the state’s mandated paid family and medical leave.

• However, employees must retain any benefits accrued before their leave and be restored to their previous position with the same benefits upon return.

What are the details?

Background:

• Since 2019, eligible Massachusetts employees have been entitled to up to 26 weeks of paid leave under the Paid Family and Medical Leave Act (PFMLA) for bonding with a new child (birth, adoption, or foster care), caring for a family member with a serious health condition, or addressing a personal serious health condition.

• Upon returning from leave, employees are guaranteed their original or equivalent position with the same pay, benefits, and seniority, ensuring they can take leave without fear of job loss or significant disadvantages.

• The Bodge plaintiffs, a group of Massachusetts state troopers, sued the Commonwealth and other state entities, arguing that the policy of denying benefit accrual during PFMLA leave violated the Act. They claimed this policy affected their rights to accrue benefits and constituted retaliation under the Act. The defendants moved to dismiss the lawsuit.

The Ruling in Bodge v. Commonwealth:

• The Massachusetts Supreme Judicial Court (SJC) ruled that:
  • The Massachusetts Paid Family and Medical Leave Act (PFMLA) does not require employers to allow employees to accrue benefits such as vacation, sick leave, and length-of-service credit while on PFMLA leave.
  • Employees must be restored to their previous status upon return, including the same or an equivalent position with the same pay, benefits, and seniority.
  • Employees do not continue to earn these benefits during their leave.

• The ruling emphasized:
  • The PFMLA ensures job protection and continuation of health insurance benefits during leave.
  • It does not mandate the accrual of other employment benefits.
  • Employers should focus on restoring employees to their pre-leave benefit status upon return.
  • Consistency with other leave policies is important to avoid potential claims of discrimination.
  • Employers must maintain employees’ health insurance at the same level during PFMLA leave.
  • Employers should be cautious of any actions that could be perceived as retaliatory.
  • Employers are not prohibited from allowing benefit accrual during leave, but it is not a legal requirement.

Business Considerations

• Employers should review leave policies and ensure the leave policies are up-to-date and clearly define the rights and obligations of both the employer and employee during PFMLA leave. This helps in maintaining compliance and avoiding legal issues.
• Employers should communicate with employees about what benefits will and will not accrue during their PFMLA leave. Transparency may help prevent misunderstandings and potential legal challenges.
• Employers should monitor legal developments since the statute is still relatively new, ongoing legal interpretations could impact employer responsibilities.
• Employers should maintain health insurance and ensure that employees’ health insurance is maintained at the same level during PFMLA leave, including continuing coverage and contributions to their health insurance benefits.

Source References

• Bodge v. Commonwealth

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