Compliance FYI: Maine Paid Family and Medical Leave
On July 11, 2023, Governor Mills signed legislation creating the Maine Paid Family and Medical Leave (PFML) program joining the growing number of states with paid family and medical leave laws. While benefits under the program do not begin until May 2026, employer responsibilities begin on January 1, 2025.
Covered Employees and Employers
All employers with an employee in Maine are covered by the law. Covered employees work in the Maine and must have earned at least six times the Maine average weekly wage during the employee’s base period. 1
Reasons for Leave and Duration of Leave
Leave under Maine PFML is separated into family leave and medical leave.
Family leave
- Bond with child during first 12 months after birth or first 12 months after the placement of the child for adoption or foster care;
- Care for a family member with a serious health condition;
- Attend to a qualifying exigency;
- To care for a family member of the covered individual who is a covered service member;
- Take safe leave;
- Any other reason set forth in Maine’s state family and medical leave law.
Medical Leave
- Employee’s own serious health condition
A covered employee can take 12 weeks of family leave and 12 weeks of medical leave, though an individual cannot take more than 12 weeks of family and medical leave combined in the same benefit year.
Benefit Amount
Individuals will receive:
- 90% of the portion of their average weekly wage that is equal to or less than 50% of Maine’s average weekly wage; and
- 66% of the portion of the individual’s average weekly wage that is more than 50% of the Maine average weekly wage.
Benefits are capped at Maine’s average weekly wage and are set to begin May 1, 2026.
Premium Contributions
Benefits under Maine’s PFML program are funded through payroll contributions that differ by employer size:
- Employers with 14 or fewer employees in Maine: 0.5% of an employee’s wage and the entire contribution can be deducted from an employee’s wages.
- Employers with 15 or more employees in Maine: 1% of an employee’s wage with half that amount (0.5%) being deductible from an employee’s wage. The employer must contribute the remaining amount.
Employers must determine their employee count annually on October 1 for the upcoming calendar year by looking at the 12-month period before September 30 of the current calendar year (i.e. going back to October 1 of the previous calendar year and determining employee count until September 30 of the current year). For January 1, 2025, employers determine their number of employees by determining if they employed 15 or more employees in Maine on its payroll each week for at least 20 weeks between October 1, 2023, and September 30, 2024.
Employer Responsibilities
- Count your Maine Employees: the number of employees in Maine will determine the proper payroll withholding percentage.
- Begin withholding premiums in January 2025: deductions for Maine PFML begin in January 2025 and employers should be ready to begin making the required withholding.
- Register in the Paid Leave Portal: the Paid Leave Portal is going live shortly and will be used to provide reports and submit contributions for the PFML program. Once live, employers should register in the Portal.
- Assess a Private Plan: employers can opt out of the state plan by either providing equivalent benefits through a private insurance policy or by self-funding those benefits, provided certain requirements are met. Employers may be well served to explore these options.
Key Takeaways:
Employers with employees in Maine should review the requirements of Maine Paid Family and Medical leave. Employers who are required to comply with the law should prepare to meet the requirements beginning January 1, 2025.
1 “Base period” means the first 4 of the last 5 completed calendar quarters immediately preceding the first day of an individual’s benefit year.
The information provided is a summary of laws and regulations relating to employee benefit plan compliance. This information should not be construed as legal advice. In all cases, employers should consult with their own legal counsel.
