What happened?

On May 20, 2024, The Maine Department of Labor published proposed rules for Maine’s new Paid Family and Medical Leave (PFML) Program.

What are the details?
General Bites:

• In our previous update, the PFML will start on January 1, 2025, and covered individuals can start taking paid leave on January 1, 2026.
• Maine Governor Approves Paid Family and Medical Leave (VensureHR)
• The program’s proposed rules, established in July 2023, provide initial clarification for employers.
• After rule revisions, a second feedback period is expected, according to Ogletree Deakins.
• Concerns remain unaddressed about the January 1, 2025 deadline for issuing final rules, which coincides with the start of employer contributions.
• Although the comment period is closed now (comments were received up to July 8), employers should expect a second round with the “tuned up” version and give their input on that opportunity.

Key Bites:

• Covered Employees
• Applications for benefits
• Notice and Undue Hardship
• Employer premiums
• Private Plans
• Enforcement

Business Considerations

• Employers should review the proposed rules, plan for extra taxes, explore private plans, choose between public or private options, and update leave policies and benefits.
• Employers should understand the scope of employees covered by the proposed rules, including full-time, part-time, seasonal, temporary, and self-employed individuals.
• Employers should prepare for leave requests and anticipate potential leave requests as employees are not subject to waiting periods before utilizing PFML. Understand the protections available to employees upon return to work.
• Employers should consider concurrent leave and evaluate the impact of running PFML concurrently with federal Family and Medical Leave Act (FMLA) leave.
• Employers should plan for undue hardship claims by understanding the steps outlined in the proposed rules and the factors the department will consider when assessing the reasonableness of an undue hardship claim.
• Employers should prepare for contributions: Determine your premium liability for 2025 based on the number of covered employees as of October 1, 2024. Prepare for quarterly remittance of premium amounts and contribution reports.
• Employers should understand the enforcement process, since the department will be responsible for enforcement, including investigating complaints or reports of suspected fraud and the potential penalties and fines associated with non-compliance.
• Employers should stay involved: Consider reviewing and commenting on the proposed rules during the expected second comment period once the department has made an updated version.

Source References

• MDOL Rulemaking
• MDOL Press Release

Resources

• MDOL Paid Family and Medical Leave Homepage

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