Maine Enacted Mandatory Paid Family and Medical Leave Program

 

On July 11, 2023, Maine enacted its statutory paid family and medical leave (PFML) program, joining 14 other states and Washington, DC, to establish a PFML program. Maine’s PFML program applies to all employers who have at least one employee working in Maine (except the federal government). The payroll withholding of the employees' contributions is scheduled to begin on January 1, 2025, and according to the state’s PFML website, the benefits will be available to eligible employees starting May 1, 2026. Maine Department of Labor is tasked to create rules for the program starting in 2025.

As reflected on the PFML website, below are the key highlights of PFML:

Timeline

• January 1, 2025: Contributions to the PFML fund will start.
• May 1, 2026: PFML benefits become available to employees.

Covered Employers
A private or public employer who employs at least one employee working in Maine (except the federal government).

 

Funding of the Program
Beginning January 1, 2025, the total premium amount will be no more than a combined rate of 1.0% of employees’ wages capped at the federal Social Security Administration limit.

• For an employer with 15 or more employees, the employer and employees split the share of the total premium (i.e., 50%/50%).
• An employer with fewer than 15 employees is not required to contribute to the program. Therefore, the employer will remit only the employees’ portion of the contribution to the state, which is 50% of the total premium.

Qualified Reasons for Leave
Employees' own serious health condition and for an eligible employee to:

 

• Care for a family member with a serious health condition
• Bond with a new child (by birth, adoption or fostering) during the first 12 months after the child's birth or placement
• Care for a next-of-kin service member
• Attend to a qualifying exigency arising out of a family member’s military deployment
• Care for a family member of the covered individual who is a covered service member
• Use safe leave for when an employee or employee’s family member is a victim of domestic violence, stalking or sexual assault
• Any reason set forth in Maine’s Family Medical Leave Requirements

Maximum Benefits Duration

 

• 12 weeks in a benefit year on aggregate of all qualifying reasons
• Leave can be taken continuously or intermittently

Maximum Benefits Amount

 

• The portion of an employee’s average weekly wage that is equal or less than 50% of the state average weekly wage must be replaced at a rate of 90%
• The portion of an employee’s average weekly wage that is more than 50% of the state average weekly wage must be replaced at a rate of 66% up to the maximum weekly benefit

FMLA and Maine PFML Interaction
Federal FMLA and Maine PFML will run concurrently when both FMLA and Maine PFML are applied.

 

Plan Options

• State-administered
• Private plan

Notice to Employees
Employers will be required to provide written notice to each covered employee to inform them about Maine PFML program within 30 days from an employee’s hire date. Additionally, employers will need to post a workplace notice provided or approved by the state.

 

Employers who have at least one employee in Maine should be aware of this new update.

Maine Department of Labor — Paid Family and Medical Leave Main Site »
2023 Public Law Chapter 412, Part AAA »