Compliance Stuff

Maine’s  paid family and medical leave (PFML) program  will begin paying benefits on May 1, 2026. Employers with at least one employee in Maine began making contributions to the PFML fund in January 2025 through employee payroll deductions and employer contributions. On January 20, 2026, the  Maine Paid Family and Medical Leave Benefits Authority  announced that the fund was sufficiently solvent to make benefits available to “most Mainers,” effective May 1, 2026. Quick Hits The Maine Department of Labor recently confirmed that benefit distributions will begin on May 1, 2026, for the  PFML program . Both employers and employees contribute to the paid family and medical leave fund. Covered workers will be entitled to take twelve weeks of paid time off for family leave, medical leave, leave to deal with the transition of a family member’s military deployment, or leave to stay safe after abuse or violence. Although the time off must occur on or after May 1, 2026, to...

Outgoing Republican Governor Glenn Youngkin vetoed some 400 bills passed by the Virginia legislature over the past four years, far more than any of his predecessors. Several of the vetoed bills would have directly impacted employers operating in the commonwealth, including bills aimed at raising the minimum wage and increasing protections for warehouse workers. With incoming Democratic Governor Abigail Spanberger at the helm and a Democratic-held legislature, several bills that Gov. Youngkin previously vetoed are now back in play and could become law in the coming years. Here are a few laws that Virginia employers should keep an eye on in 2026 and beyond. House Bill 1928 – Minimum Wage Increase to $15 per hour by 2027 This bill would have gradually raised Virginia’s hourly minimum wage from roughly $12.41 to $13.50 in 2026 and $15.00 in 2027. Gov. Youngkin vetoed it in 2024 and 2025, on the grounds that such a mandate would burden businesses . Raising the minimum wage remains a pop...

As Massachusetts employers look ahead to 2026, the Department of Family and Medical Leave (DFML) has released its annual updates to the Paid Family and Medical Leave (PFML) program . While the maximum weekly benefit will increase, the contribution rate remains steady. Here’s a breakdown of the key changes that take effect on January 1, plus three action items for employers. Maximum Weekly Benefit Increase Starting January 1, the maximum weekly PFML benefit employees may receive will be $1,230.39 per week, reflecting the state’s annual adjustment to keep pace with the statewide average weekly wage. This represents a modest increase from the $1,170.64 cap in 2025. For employees, this means greater wage replacement during covered leave periods. For employers with private PFML plans, this means ensuring plan benefits remain “equal to or greater than” the state program to maintain approval. Steady Contribution Rate Also effective January 1, the contribution rate on eligible employee wages w...

Congress’ recently passed budget and tax bill — the One Big Beautiful Bill Act — makes permanent a tax credit for employers who offer paid family and medical leave (PFML).   Congress first passed the temporary credit in 2017 as part of the Tax Cuts and Jobs Act. The credit, which was extended temporarily several times, allowed employers to claim a general business credit for offering PFML to eligible employees. The credit is worth 12.5% of the employee’s wages for a leave period and goes up by 0.25% for each percentage point of wages paid over 50%, up to 25%. The One Big Beautiful Bill Act, however,  expands the credit  in a couple of ways.   In addition to claiming a credit for wages paid, employers can now also get a tax credit for a portion of insurance premiums paid for an employee on PFML. It also now offers a credit for employers in states with mandated PFML laws. Previously, employers in those states were not eligible for the credit. Now, employers who provide...

 In one of the first decisions interpreting the Massachusetts Paid Family and Medical Leave Act (PFMLA), the Supreme Judicial Court (SJC) held that the PFMLA does not require an employer to allow employees to accrue benefits, such as vacation time and sick time, during PFMLA leave . Bodge, et al. v. Commonwealth, et al., SJC-13567, slip op. (Sept. 13, 2024). In this case, a group of state troopers sued the State Police, claiming the State Police’s policy of not providing for accrual of employee benefits, including vacation time and sick time, while the employees were on PFMLA leave violated the PFMLA . The SJC held that the State Police’s policy of not providing for accrual during the leave did not violate the PFMLA. The SJC noted the PFMLA states, “ An employee who has taken family or medical leave shall be restored to the employee’s previous position or to an equivalent position, with the same status, pay, employment benefits, length-of-service credit and seniority as of the date...

  On September 13, 2024, the Massachusetts Supreme Judicial Court (the “SJC”) ruled that the Massachusetts Paid Family and Medical Leave Act (the “Act”) does not guarantee the accrual of benefits such as sick leave, vacation leave and length-of-service credit during a period of paid family or medical leave (“PFML”). Instead, the Act mandates only that employees return from leave to the same or equivalent position that they held at the commencement of leave. Summary of the Case In  Bodge & others vs. Commonwealth & others ¸ plaintiffs represented a class of state troopers who sought to take PFML in connection with the birth of a child. The plaintiffs alleged that denying their right to accrue employee benefits while on leave violated the Act . The SJC disagreed, finding that the statutory language says otherwise – it does not confer accrual rights on employees but rather requires that employees be put back to the same or equivalent position that they held when their le...