Maine: Proposed Paid Family and Medical Leave Rules
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APPLIES TO All Employers with Employees in ME |
EFFECTIVE As Indicated |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion
The Maine Department of Labor (MDOL) issued proposed rules for the Paid Family and Medical Leave Program (PFML) which went into effect October 25, 2023. MDOL must meet a January 1, 2025 deadline for issuing final rules. This is also the date when employer contributions begin with benefits beginning May 1, 2026. The proposed rules provide clarifications on the following points:
Covered Employee. Employees who perform services and earn wages in Maine, including full-time, part-time, seasonal, and temporary employees are covered. Wages must be earned in Maine during the first four of the last five completed calendar quarters immediately preceding the first day of the benefit year. Self-employed individuals can elect into coverage.
Family Definition. “Family” includes those with whom an employee has “a significant personal bond…like a family relationship, regardless of biological or legal relationship.” Employees are limited to only one such “affinity relationship” per benefit year. There is also no definition for “child” or an age limit for those considered a child.
Notice. Employers cannot require written notice of the need for PFML.
Waiting Period. There is no waiting period before taking PFML benefits.
Interaction with Other Leaves. PFML runs concurrently with the federal Family and Medical Leave Act (FMLA). However, employers cannot require employees to exhaust paid time off or other company-provided leaves before using PFML. It is unclear if leaves can be stacked if employees use PFML for reasons not covered by other leave laws.
Undue Hardship. Employers must provide MDOL with a written explanation of the undue hardship that would be created if an employee received PFML benefits. This includes attempting in good faith to create a leave schedule that meets the employee’s needs. MDOL would then assess the reasonableness of the undue hardship claim based on a non-exhaustive list of factors considered, including the impact on the employee and the “nature and extent of attempts” made by the employee and employer to schedule leave that would not cause an undue hardship.
Contributions. Employers with 15 or more covered employees must remit one hundred percent (100%) of the premium but may deduct up to fifty percent (50%) of the premium from the employees’ gross wages. Employers with fewer than 15 employees must remit fifty percent (50%) of the premium but may deduct up to fifty percent (50%) of the premium from employees’ gross wages. The employer size for the purposes of determining premium liability for calendar year 2025 is determined by the number of covered employees employed by the employer in Maine on October 1, 2024. The number of employees includes full-time, part-time, seasonal employees and temporary employees. On October 1, 2025, and October 1 of each year thereafter, the employer must calculate its size for the purpose of determining premium liability for calendar year 2026 and each calendar year thereafter.
Private Plans. Equivalent private plans need to obtain MDOL’s approval. Applications for approval will be accepted any time after January 1, 2025, but exemptions will not be effective until April 1, 2026. Exemptions are valid for three years with MDOL retaining the ability to cancel or make changes to approved plans.
Action Items
- Review the proposed rules here.
- Review leave policies to prepare for necessary updates.
- Review payroll processes for remittance of premium amounts and contributions.
- 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. © 2024 ManagEase