Compliance Stuff

On April 27, a jury handed down what is reported to be the first verdict in Massachusetts validating a retaliation claim under the Massachusetts Paid Family and Medical Leave Act (PFMLA). In Boyle v. Wayfair, LLC , the jury found that Wayfair retaliated against plaintiff Mary Boyle for taking PFMLA leave, despite Boyle’s poor — and well-documented — performance reviews that predated her leave. The verdict resulted in a $4.7 million award, including $4 million in punitive damages, $600,000 for emotional distress, and more than $75,000 in back pay, emphasizing the significant risk employers face when terminating employees within six months of their return from PFMLA leave.  The Six-Month Presumption and Its Evidentiary Burden  Typical claims of unlawful retaliation place the initial burden of proof on the employee, but not for adverse actions occurring within the six months following an employee’s return from PFMLA leave. In this window, the Massachusetts legislature codified a...

Takeaways In  Laughlin,  a Massachusetts Superior Court clarified that the Massachusetts PFMLA does not impose individual liability to corporate officers or agents because the law’s definition of “employer” does not extend liability to individuals. The court also rejected an aiding-and-abetting theory under the PFMLA. Employers should consider  Laughlin  when evaluating claims dismissal strategies when plaintiffs name individuals as defendants in claims and limit interactions with employees on approved PFMLA leave. Related links Laughlin v. BinStar, Inc. (Delaware), et al. Article A Massachusetts Superior Court judge has dismissed Massachusetts Paid Family and Medical Leave Act (PFMLA) claims against two individual defendants, holding that the PFMLA does not extend individual liability to a corporate employer’s officers or agents, including individual investors or board members.  Laughlin v. BinStar, Inc. (Delaware), et al. ,  No. 25-1625-BLS1 (Feb. 26, 202...

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...