October 30, 2024
Summary: As we previously reported here, Maine passed their own paid family and medical leave program (ME PFML) in July 2023 and became the last state in New England to enact a PFML program.
Payroll contributions to ME PFML will begin on January 1, 2025.
Read on for more information below and next steps for employers with employees working in Maine.
Maine PFML Timeline
Maine PFML Highlights
Maine PFML will provide full or partial income replacement benefits for employees working in Maine. The table below captures highlights[1] of the Maine PFML program for employers to know ahead of the implementation dates listed above.
|
Maine PFML Program Provisions |
Requirement |
|
Covered Employers |
Any employer (except the federal government) who employs at least one employee in Maine. |
|
Covered Employees |
Employees who earned at least six (6) times the state average weekly wage in wages in four of the last five completed quarters. Self-employed individuals are eligible for ME PFML but must choose to opt into the program. |
|
Maximum Amount of Leave |
Up to 12 weeks in a benefit year (generally a 12-month period) |
|
Qualifying Reasons for Leave |
Family leave:
Medical leave: Caring for an employee’s own serious health condition[2]. Safe leave: Supporting and caring for the employee, or the employee’s family member, who is a victim of domestic abuse, violence, assault, and/or stalking. Qualifying military exigency leave: For emergencies related to military deployment. Military Caregiver leave: Caring for a family member who is a covered service member. |
|
Definition of Family Member |
Includes a covered employee’s spouse, domestic partner, child, parent, grandparent, grandchild, sibling, and an individual with whom the covered employee has a significant personal bond that is, or is similar to, a family relationship, regardless of biological or legal relationship. The family member relationships listed above include biological, adoptive, foster, step, “de facto,” legal guardian, and a person who stands/stood in loco parentis for the covered employee. |
|
Payroll Deduction Amounts |
For calendar years 2025-2027, the combined contribution rate is set at either 0.5% or 1% of wages, based on the size of the employer.
An employer may, but is not required to, cover the employee’s share of 0.5% of the contribution rate. To determine employer contribution rates in accordance with the 15 (or more) employee count threshold, employers must count their covered employees under their employer's Federal Employer Identification Number (FEIN) on their established payroll in 20 or more calendar workweeks in the 12-month period preceding September 30th of each year. Examples of contribution breakdown for employers/employees:
|
|
Payroll Deduction Effective Date |
January 1, 2025 |
|
Benefit Effective Date |
May 1, 2026 |
|
Job Protection: |
Employees returning to work from ME PFML must be restored to their previous position held before starting ME PFML or to an equivalent position with equivalent pay, benefits, and other terms of employment. Note that individuals who have not worked for an employer for at least 120 days are not guaranteed job protections when taking ME PFML. Employers are prohibited from retaliating against employees for taking ME PFML or exercising their rights under ME PFML. |
|
Private Plan Option |
Employers may apply for a private plan substitution that is considered “substantially equivalent" to the state plan. Employers may opt out and administer their own plan as long as their plan meets the obligations required under the PFML law (rights, protections, and benefits). |
|
Employee Notice |
Absent an emergency, illness, or other sudden necessity for taking leave, an employee must provide reasonable notice to the employee's supervisor of the employee's intent to use leave (generally 30 days written notice to the employer is sufficient based on proposed ME PFML rules). |
|
Required Employer Notices |
Employers must post a ME PFML benefits notice in a conspicuous place at each worksite in English and other languages that are the primary language of 3 or more employees of that worksite. The Maine Department of Labor (ME DOL) has already published a ME PFML poster, which can be accessed here. Additionally, employers must provide written notice to employees in their primary language of ME PFML rights, benefits, and claim filing information within 30 days of hire. |
Employer Next Steps
Employees with employees working in Maine are advised to take the following steps:
- Counting Employees: Employers will determine contribution rates by counting the number of Maine employees between October 1, 2023 and September 30, 2024. Maine released employer guidance on how to count employees in Maine for purposes of determining whether an employer meets the 15 or more employees working in Maine threshold.
To determine if an individual is a Maine employee, use the criteria detailed below.
If an employer answers “Yes” to this series of questions, then the individual is a Maine employee.
- Is the employee’s work performed in Maine? Yes/No
If No → Go to Question 2. - Does the individual perform some work in Maine and the physical base of operations in Maine? Yes/No
If No → Go to Question 3. - Does the individual perform some work in Maine AND is the service directed and controlled from Maine? Yes/No
If No → Go to Question 4. - Does the individual perform some work in Maine and live in Maine? Yes/No
If No → The individual is not a Maine employee.
- Is the employee’s work performed in Maine? Yes/No
- Withhold Payroll Deductions: Employers are advised to start working with their payroll provider to withhold applicable payroll deductions starting on January 1, 2025.
- Portal Registration: Employers will be required to register with the Maine DOL via the Maine PFML portal to submit premiums and wage reports, the first due by April 30, 2025. This portal will be available in early 2025. Click here for the ME PFML webpage to continue monitoring for updates.
Delaware PFML Reminder
Multistate employers take note! Delaware PFML contributions also start on January 1, 2025. Click here for a Risk Strategies article with more information.
For those employers interested in learning more about private plan options, or have additional questions regarding the ME PFML program, the Risk Strategies Absence Management team is here to help. Contact us directly at benefits@risk-strategies.com.
[1] Note that the provisions listed below might be subject to change, pending the release of final ME PFML rules.
[2] "Serious health condition" means an illness, injury, impairment, pregnancy, recovery from childbirth or physical, mental or psychological condition that involves inpatient care in a hospital, hospice or residential medical care center or continuing treatment by a health care provider.
Related Posts
