Employee Benefits – the in-house advisor

Considerations for October 1, 2019 Massachusetts Paid Family and Medical Leave Tax

September 17, 2019
By: Evelyn Haralampu

Beginning on October 1, most employers in Massachusetts will be required to withhold tax to fund Massachusetts Paid Family and Medical Leave benefits. There is an exception to this requirement, however, for companies that receive a tax exemption from the state for a private plan providing the same or better benefits. Many employers have already chosen to apply for a tax exemption, after comparing the cost of the tax to the likely cost of implementing a private plan. Some companies are requesting exemptions from part or all of this tax because for them, it is cheaper to pay for the benefits directly or through short and long-term disability plans already in place. Others have chosen to obtain tax exemptions for 2019 and 2020 only, with the intention that they will join the state plan in 2021 and begin withholding taxes then. (Because benefits under the program are not payable until 2021, an employer with a two-year tax exemption reaps an immediate savings while shifting the risk of paying benefits to the state, beginning in 2021.) Still others want a tax exemption because their own program for paid leave is better than what the state generally offers, and they do … Keep reading

Vacationing While on FMLA Leave Is Not Grounds For Termination

August 20, 2019
By: Gregory Paonessa

Imagine, an employee in your organization advises that they need to take leave pursuant to the Family and Medical Leave Act to recover from an upcoming surgical procedure. Your organization approves the leave and then you find out that while on leave and supposedly recovering from surgery, the employee goes on a family vacation to a far off beach resort. You are irate at what you perceive to be a blatant bait and switch and want to consider terminating the employee. Hopefully, you run all this by your General Counsel first because, depending on the circumstances, such termination could be deemed retaliatory and subject the company to a claim for substantial damages. Indeed, this is exactly what happened in DaPrato v. Massachusetts Water Resource Authority.

In that case, Richard A. DaPrato, who worked for the MWRA, was on FMLA leave recovering from foot surgery when he filed an application (signed by his surgeon) to extend his leave from March 20 to March 26. Shortly thereafter, DaPrato went on a family vacation to a Mexican beach resort. Approximately two weeks after returning from Mexico, the MWRA learned DaPrato had gone on vacation, reasoned that DaPrato had lied about his medical … Keep reading

Massachusetts Employers: Prepare for Supplemental Unemployment Tax Assessments

February 28, 2018
By: Renee Inomata

Massachusetts employers will soon see the impact of House Bill 3822, signed last year by Governor Charlie Baker. In an effort to offset the significant shift from commercial to publicly subsidized health care coverage, in 2018 and 2019, there will be an increase in the existing Employer Medical Assistance Contribution, as well as a new supplemental fee for employers whose non-disabled employees either receive coverage through the Massachusetts Division of Medical Assistance (MassHealth) or have their coverage subsidized by the Massachusetts Health Insurance Connector Authority (ConnectorCare).

Beginning in the first quarter of 2018, all employers will likely see an increase in their existing EMAC, assessed through the Department of Unemployment Assistance. The increase is intended to be temporary and applicable to wages paid in calendar year 2018.

Additionally, employers with more than five employees who are non-disabled and receive health care coverage through MassHealth or receive subsidized care through ConnectorCare for a period of at least 56 continuous days, will be assessed a supplemental fee of up to 5% of a covered employee’s unemployment insurance taxable wages (up to a cap of $750 per covered employee). The assessment will be based on wages on record with the DUA for … Keep reading

4 Things You Need to Know About the Earned Sick Time Law

July 30, 2015
By: Renee Inomata

Earlier this year, in Mandatory Paid Sick Leave — What In-House Counsel and Employers Need to Know, I previewed some of the requirements of the Massachusetts Earned Sick Time Law. Final regulations were issued by the Attorney General’s office on June 22, 2015. Almost one month after the deadline for compliance, how are you doing in complying with the new law? If you’re like many employers, you may still be figuring it all out. Here are four key points all employers should be aware of.… Keep reading

Hey Guys, You Get “Maternity” Leave, Too!

February 20, 2015
By: Renee Inomata

For years, the Massachusetts Maternity Leave Act (“MMLA”), M.G.L. c. 149, §105D, only applied to female employees by its literal terms. The Massachusetts Commission Against Discrimination (“MCAD”), the agency tasked with enforcing the MMLA, has taken the position that if the MMLA was applied literally, it would be unconstitutional, as it would give female employees greater employment rights than men. Although initially intended to protect women who were giving birth to children, since the MMLA also protects women who adopt children, it is not about the physical “disability” associated with giving birth to a child. Thus, the argument goes, men should also be covered by its protections. The conflict between the literal terms of the MMLA and the MCAD’s guidelines for interpreting the MMLA created difficulty for employers who were not subject to the Family and Medical Leave Act (which entitles eligible employees, regardless of gender, to up to 12 weeks of unpaid leave for the birth or adoption of a child).

On his last day in office, Governor Deval Patrick settled the matter once and for all, by signing into law a bill that expressly expands the protections of the MMLA to all employees, regardless of gender.… Keep reading

Mandatory Paid Sick Leave — What In-House Counsel and Employers Need to Know

January 23, 2015
By: Renee Inomata

As indicated in a recent blog post in the Harvard Business Review, entitled “Who Has Paid Sick Leave, Who Doesn’t, and What’s Changing,” paid sick leave traditionally was a benefit that only some employers provided, and in some cases only to certain employees. In recent years, however, increasing numbers of cities and states have begun mandating that employers provide this traditionally voluntary benefit. In fact, if President Obama makes good on his promise from his State of the Union address, there will be a national standard for mandatory paid sick leave. With the fast-changing landscape of rules and regulations related to paid sick leave, in-house counsel and employers need to keep alert. In Massachusetts, for instance, voters approved a ballot measure which goes into effect on July 15, 2015.… Keep reading

Employers Still Required to Provide Unpaid and Work-Free Maternity Leaves

July 24, 2012
By: Renee Inomata

Yahoo!, Twitter, Facebook and every possible media outlet have been aflutter with praise and criticism since newly appointed Yahoo! CEO Marissa Mayer announced to Fortune magazine that she is pregnant and taking a “few weeks” of maternity leave and will be “working throughout it”. Though this may be heartening for Yahoo! investors, the typical employer is reminded that its employees are not Mayer and are not likely to follow in her footsteps. Rather, employers must remember that there are federal and state laws that require employers to provide protected leave for many of their employees. Here are five important reminders:

Reminder #1: “Leaves” require a return to work.

The term “leave” is a bit misleading, as the key is “protected” leave, which is the right to take a leave of absence and return to his or her job. Protected leave also means that during the leave, no work is to be done or requested of the employee.

Reminder #2: Leaves may be doubled or tripled for multiple births.

In Massachusetts, a full-time, female employee who has worked at least three (3) consecutive months as a full-time employee or has completed the “initial probationary period set by … Keep reading

New Fee Disclosure Requirements Affecting Participant-Invested Retirement Plans

July 3, 2012
By: Renee Inomata

As of August 30, 2012, administrators of retirement plans that allow participants to select investment of their accounts will be required to disclose specific information about the fees associated with such investments. One of my talented partners in the Labor, Employment and Employee Benefits Group at Burns & Levinson, Evelyn Haralampu, provides some simple guidance about these new disclosure requirements. Click here to read her update.… Keep reading