Maine PFML Contributions Begin in 2025: Employer Next Steps

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:

• Bonding with a new child (birth, adoption, foster care),
• Care for a family member with a serious health condition^[2]
• Organ donation purposes.

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.

• Employers with 15 or more employees will contribute 1% of wages and may deduct up to ½ of the contribution from their employees’ wages.
• Employers with fewer than 15 employees will contribute 0.5% of wages and may deduct the entire amount from the employees’ wages.

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 30^th of each year.

Examples of contribution breakdown for employers/employees:

• For employers with 15 or more employees:
  For an employer with an annual payroll of $1 million a year, the annual premium would be $10,000 ($1M x 1%). The employer would contribute $5,000 per year (0.5%) and the employees (combined) would contribute $5,000 per year (0.5%).
• For employers with fewer than 15 employees:
  For an employer with an annual payroll of $250,000, the annual premium would be $1,250 ($250K x 0.5%). The employer may deduct the entire amount from the employees’ wages and would be responsible for remitting the premium.

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.