Independent Contractors and Paid Family Medical Leave in Massachusetts
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The Massachusetts Paid Family Medical Leave Act ("PFMLA") went into full effect in 2021. This is a game changer for employees, who can now access partial payment for extended family or medical leave.
It also potentially changes the game for self employed individuals or independent contractors. You can opt into the program by making the contribution payments into the fund. You can begin accessing benefits once you have made the required contributions for 2 of the previous 4 quarters. The required contribution is currently 0.68% of your self-employed income. As with W-2 employees, you also have to have earned $5,700 or more in the previous four quarters to be eligible. |
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Available Paid Family Medical Leave Benefits
The following leaves are available under PFML:
A "serious health condition" can be physical or mental, and will need to be documented by your provider in your application for benefits.
Also, if you are currently self-employed but had a job within the last 26 weeks, you may still be able to apply for benefits based on the contributions you made to the program while employed.
The benefit will include 80% of your prior pay up to half of the statewide average weekly wage, then 50% of that portion of your weekly pay that is above that amount. The total weekly benefit under any circumstance is $1,084.31 per week, as adjusted in 2022.
- Your own serious health condition: up to 20 weeks in a benefit year.
- Caring for a family member with a serious health condition: up to 12 weeks in a benefit year.
- Birth or adoption, or bonding with a child within 12 months of birth or adoption: up to 12 weeks in a benefit year.
- Caring for a family member who is a covered service member with a serious health condition: up to 26 weeks in a benefit year.
A "serious health condition" can be physical or mental, and will need to be documented by your provider in your application for benefits.
Also, if you are currently self-employed but had a job within the last 26 weeks, you may still be able to apply for benefits based on the contributions you made to the program while employed.
The benefit will include 80% of your prior pay up to half of the statewide average weekly wage, then 50% of that portion of your weekly pay that is above that amount. The total weekly benefit under any circumstance is $1,084.31 per week, as adjusted in 2022.
How to Opt Into Paid Family Leave
The state has provided detailed online instructions for opting in to PFML for self-employed individuals. You will need your social security number and information from a prior tax return. Once you have set up your account, you can begin making the contributions to the fund. You are eligible to apply for benefits in an appropriate circumstances if you have contributed for 2 of the prior 4 quarters, and earned at least $5,700 in revenue in the prior 4 quarters.
Paid Family Leave and Misclassification
If you provide services for a company but are classified as an independent contractor rather than an employee, you should consider the effect of that classification on your entitlement to benefits. It may be that family and medical leave benefits will ultimately be considered as part of your damages if you bring a misclassification claim and win- right now the law is too recent to really know how courts will treat that.
In the meantime, you may find yourself needing these benefits and being unable to access them. For that reason, you might consider opting in to the program as a self-employed individual, as described above. Though in many cases it really should be your employer's responsibility to ensure your enrollment in the program, you and your family may be best protected by ensuring that you are eligible for benefits if needed.
In the meantime, you may find yourself needing these benefits and being unable to access them. For that reason, you might consider opting in to the program as a self-employed individual, as described above. Though in many cases it really should be your employer's responsibility to ensure your enrollment in the program, you and your family may be best protected by ensuring that you are eligible for benefits if needed.
How Our Employment Lawyers Can Help
We have helped many people assess their classification as independent contractors, and take appropriate action. You can use the button below to schedule a call back from a member of our team, or give us a call at 781-784-2322.
