Understanding Maine’s Paid Family and Medical Leave Program

On December 4, 2024, the Maine Department of Labor finalized the rules for the state’s Paid Family and Medical Leave (“PFML”) program, set to commence on January 1, 2025 (Title 26 § 850-A et. seq.). This initiative positions Maine alongside 13 other states and Washington, D.C., in offering paid leave benefits to employees.

Overview

Maine’s PFML program provides eligible employees with up to 12 weeks of paid leave annually. The program encompasses both private and public sector employees, excluding federal government workers. Notably, self-employed individuals can opt into the program to receive benefits.

Funding Mechanism

To finance the program, a 1% payroll tax will be implemented, divided equally between employers and employees. This tax becomes effective on January 1, 2025, with employees eligible to begin taking leave on May 1, 2026.

Eligibility Criteria

To qualify for benefits, individuals must have earned at least six times the state average weekly wage in the first four of the last five completed calendar quarters preceding their benefit year. For context, with the current state average weekly wage at $1,144.67, an individual needs to have earned a minimum of $6,868 in the prior year to be eligible.

Qualifying Reasons for Leave

Eligible individuals may take paid leave for various reasons, including:

• Bonding with a new child within the first 12 months after birth, adoption, or foster placement.
• Caring for a family member with a serious health condition.
• Addressing needs arising from a family member’s active duty military service.
• Taking “safe leave” related to situations of domestic violence, sexual assault, or stalking.

The term “family member” is broadly defined to include a wide range of relationships, ensuring comprehensive coverage.

Employer Considerations

Employers should prepare for the upcoming payroll tax and familiarize themselves with the program’s requirements to ensure compliance. It’s essential to update payroll systems accordingly and inform employees about their rights and benefits under the PFML program. Given the program’s broad applicability, even small businesses must adhere to these regulations.

For detailed information and guidance, employers and employees can visit the Maine Department of Labor’s official PFML page.