Can I pay my employees while they are using Paid Family and Medical Leave to make them whole?

You may pay your employees, for example in the form of designated PTO, to make them whole. Those payments are called “supplemental benefits” and they will not affect their Paid Family and Medical Leave benefit payment. Your employee’s benefit payment will be reduced if they use paid time off or receive wages not designated as supplemental benefits by you while they are also using Paid Family and Medical Leave. Please see the “Supplemental Benefits” section below for details.

It is your choice to offer supplemental benefits and you are not required to do so. If you choose to offer these benefits, it is also an employee’s choice to accept them.

Key information about supplemental benefits:

• An employer can offer supplemental benefits in a variety of ways, including drawing down a bank of paid time off (PTO) to use as a supplemental benefit in order to “top off” their employee’s benefit payment. However, there are no limits on supplemental benefits, so you may also provide your employees a supplemental benefit that takes them beyond their usual wage.
• Please make it clear to your employees what payments are a supplemental benefit and not regular PTO. Your employee should not report supplemental benefits on their weekly claim as doing so will reduce their benefit amount.
• Management of supplemental benefits is entirely between you and your employees. It is only important to let them know if you offer them and when so employees don’t report these benefits on their weekly claim.
• For privacy reasons, the department does not provide an employee’s benefit amount to employers. If you wish to offer a supplemental benefit and would like to know how much an employee is receiving from Paid Family and Medical Leave so you can “top off” their payment, please ask your employee for that information. It is included in the approval letter your employee will receive in the mail from the department.
• Supplemental benefits are not considered gross wages and should not be included in your Paid Leave quarterly reporting.