Maine: Mandatory Earned Paid Leave Accrues Regardless of Carryover

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APPLIES TO

All Employers with Employees in ME

EFFECTIVE

September 24, 2025

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Quick Look

  • Carryover of mandatory earned paid leave will not change an employer’s independent requirement to provide 40 hours of paid leave per year.
  • An employee may accrue 40 hours of paid leave and carry over up to 40 hours of paid leave, for a total balance of 80 hours.

Discussion

Generally, Maine requires employees to accrue up to 40 hours of earned paid leave each year. Accrual of paid leave begins at the start of employment, but an employer is not required to allow use of the time off before 120 days of employment during a one-year period. Currently, although accrued paid leave carries over to the next year, employees may still only accrue up to the 40-hour maximum.

 

As of September 24, 2025, LD 55 will require that carried-over paid leave does not reduce the annual 40-hour accrual requirement. This means that an employee may still accrue the 40-hour annual entitlement and have the previous year’s unused entitlement carry over to the next year. An employee has the potential to have up to an 80-hour paid leave balance. However, employees may still be limited to using 40 hours of paid leave in a year.

 

Employers should continue to look for updates from the Maine Department of Labor clarifying these amendments.

 

Action Items

  1. Update earned paid leave policies for compliance.
  2. Update payroll processes to reflect carryover requirements.
  3. Have appropriate personnel trained on the requirements.

 

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2025 ManagEase