By: HUB's Absence Management Team

On July 11, 2023, Governor Janet Mills signed into law L.D. 1964, establishing the Maine Paid Family Leave Insurance Program (ME PFML). This makes Maine one of four states implementing statutory Paid Family and Medical Leave programs on January 1, 2026.

Overview: Maine Paid Family Medical Leave

This bulletin covers the information we currently know about ME PFML. More information will become available as the Maine Department of Labor establishes regulations and develops the program.

With few exceptions, all employers in the public and private sector in Maine will be required to participate in the program. Federal employees are not eligible for coverage. Employees will be eligible if they have earned at least six times the state average weekly wage in the first four calendar quarters immediately preceding the first day of an individual’s benefit year are covered by the law. There is no waiting period for eligibility, though some protections of the law are not provided to those who have been working for their employer fewer than 120 days.

ME PFML will provide all eligible employees with 12 weeks of leave per year, paid at 90% of an employee’s wages for income earned that is equal to or less than 50% of Maine’s average weekly wage (SAWW). The portion of the covered individual’s average weekly wage that is more than 50% of the SAWW must be replaced at a rate of 66%, up to the maximum weekly benefit.

Leave Reasons

Eligible employees can take leave for the following reasons:

  • for their own serious health condition;.
  • to care for their child or their domestic partner’s child during the first 12 months after the child’s birth or placement for adoption or foster care of a child aged 16 years or younger;
  • to care for a family member with a serious health condition;
  • to attend to a qualifying exigency arising from a family member’s active military service or call to service;
  • to care for certain family members with a serious health condition incurred during active military service;
  • for the death of certain family members who died during active military duty;
  • for the donation of an organ of the employee for a human organ transplant;
  • for safe leave, otherwise known as sexual assault victims’ leave.

Under this law, a family member is defined as the employee’s biological, foster, step, or adopted child (regardless of age); parent; grandparent; grandchild; sibling; spouse or domestic partner; or “an individual with whom the covered individual has a significant personal bond that is or is like a family relationship, regardless of biological or legal relationship.

Benefits under this law are not subject to state income tax.

Protections

Employers must maintain health insurance benefits for employees while they are out on ME PFML, so long as the employee continues to pay their portion of the premiums.

For an eligible employee who has been employed for at least 120 days prior to taking leave, the employer must restore that employee to the same or equivalent position with the same or equivalent benefits, pay, and other conditions of employment. However, the law expressly prohibits retaliation for any employee, including those employed less than 120 days, exercising their right to paid family and medical leave.

Funding

The program will be funded with a payroll tax of 1%, split equally between the employer and employees. Employers with fewer than 15 employees do not have to contribute toward the payroll tax, but still must collect and remit the employee portion of contributions to the state. Payroll contributions will begin on January 1, 2025.

Next Steps

HUB’s Workforce Absence Management (WAM) team will continue to monitor the progress of Maine’s rule making process for ME PFML. Employers should watch for updates, though no immediate steps need to be taken at this time.

NOTICE OF DISCLAIMER

Neither Hub International Limited nor any of its affiliated companies is a law or accounting firm, and therefore they cannot provide legal or tax advice. The information herein is provided for general information only and is not intended to constitute legal or tax advice as to an organization’s specific circumstances. You should consult an attorney, accountant, or other legal or tax professional regarding the application of the general information provided here to your organization’s specific situation in light of your organization’s particular needs.