Maine's Paid Family and Medical Leave Program
How the Maine PFML program impacts your business and your employees.
Maine's Paid Family and Medical Leave Impact
Maine has become the latest state to begin a Paid Family and Medical Leave program.
The Maine PFML program is changing the game, ensuring employees have access to benefits when taking time away from work for certain qualifying events. On this page, discover how PFML will impact both employers AND employees. We will cover:
What is Maine's PFML Program?
Unfortunately, unexpected occurrences can take place for one of your employees. These things can cause employees to miss an extended period of time from work. Maine has implemented a Paid Family Medical Leave Program to provide benefits to those employees who need to take time off from work due to certain qualifying events.
As defined by the law, Paid Family Medical Leave provides employees with paid time away from work due to medical reasons that require a long-term absence. This leave can be taken for family reasons, such as caring for an ill family member or a new child, or medical reasons, such as a personal serious illness or injury.
What employers are impacted?
According to the law, All public and private employers, as well as self-employed individuals are covered by the program. Federal government employers are not covered by the program.
- Employers with more than 15 employees will contribute a portion of the payroll tax to fund the program.
- Employers with 15 or less employees will not have to pay the employer portion of the tax..
- Employers can opt-out of the program if they offer comparable private paid leave to their employees. Employers cannot impose a cost to employees that is greater than the payroll tax under the state plan for these private programs.
What is a covered employee?
According to the law, a covered employee is:
- All public and private full-time and part-time employees, as well as self-employed individuals.
- Must have earned at least six times the state average weekly wage in the first four calendar quarters immediately preceding the first day of an individual’s benefit year are covered by this program.
- Has taxable wages in the state of Maine.
What benefits are employees entitled to under PFML?
- Maine’s program will provide up to 12 weeks of paid leave per year to all eligible employees of private and public employers regardless of employer size.
- During the approved leave period, employees will receive 90% of their wages for income earned that is equal to or less than 50% of Maine’s average weekly wage. Currently, this average weekly wage is $1,103. Any portion of an individual’s weekly wage that is more than 50% of the state’s average weekly wage is replaced at 66% up to the maximum weekly benefit.
- Employers must restore the employee to the same or equivalent position once the employee returns from leave. This same or equivalent position must have equal pay, benefits, and other conditions of employment. The rules apply to eligible employees that have worked at least 120 days prior to taking leave.
What are the implementation dates?
Employers must begin withholding payroll tax to fund this program on January 1st, 2025.
**Employees are eligible to take benefits starting May 1st, 2026.**
How will Maine PFML impact employers?
- Employers must withhold a payroll tax from employees.
All employers must withhold a 0.5% payroll tax from employee wages starting on January 1st, 2025 to fund the PFML program.
- Some employers must contribute a payroll tax to the program.
Employers with more than 15 employees must also contribute a 0.5% payroll tax to help fund the program.
- Employers can opt-out of the program if they offer comparable private paid leave to their employees.
Employers cannot impose a cost to employees that is greater than the payroll tax under the state plan for these private programs.
- Employers must remit contributions.
The employer is responsible for remitting contributions to the PFML Fund.
- Employers must be aware that they must restore the employee to the same or equivalent position once the employee returns from leave.
This same or equivalent position must have equal pay, benefits, and other conditions of employment. The rules apply to eligible employees that have worked at least 120 days prior to taking leave. If the employee has not worked for at least 120 days, they may not be subject to these protections.
- Employers must provide notice to employees.
Employers will also be required to post a labor law poster in the workplace. We will have this poster available for FREE on our website once it is available. Employers must also issue written notice to each employee within 30 days of hire that includes details of this program.
How will Maine PFML impact employees?
- Employees will automatically have a payroll tax deducted.
Employees will automatically have 0.5% of wages deducted through a payroll tax to help fund the PFML program.
- Employees are eligible for leave each benefit year.
Covered employees are eligible to up to 12 weeks of paid leave per year for certain qualifying events.
- Employees can receive up to a certain amount,
During the approved leave period, employees will receive 90% of their wages for income earned that is equal to or less than 50% of Maine’s average weekly wage. Currently, this average weekly wage is $1,103.
Any portion of an individual’s weekly wage that is more than 50% of the state’s average weekly wage is replaced at 66% up to the maximum weekly benefit.
- Eligible employees can use this paid leave for a number of reasons.
At this time, some of these reasons include:
- Bonding with the covered individual’s child during the first 12 months after childbirth or in the first 12 months after the placement or adoption of a child.
- Caring for a family member with a serious health condition.
- Attending a qualifying exigency. This is defined as “a need rising out of a covered individual’s family member’s active duty service or impending notice of a call or order to active duty.”
- Caring for a family member of the covered individual who is a covered service member.
- Safe leave, otherwise known as sexual assault victim leave.
- Any other reason set forth in Maine FMLA requirements.
- Leave is not limited to employees’ own conditions or conditions of a direct family member. This means that the plan permits employees to take leave to care for an individual with whom they have “a significant personal bond that is or is like a family relationship regardless of biological or legal relationship.”
- Employees must give notice to employers.
Employees can take the paid leave immediately after starting employment. Employees looking to take paid leave must provide employers with only reasonable notice of their intent to take leave.
Types of Leave
There are 3 types of leave that employees are eligible for under Maine’s PFML Program.
- Continuous Leave
An employee is taking leave that is ongoing for days or weeks at a time.
Example: A new mother is taking 8 weeks off to bond with newborn baby.
- Intermittent Leave
An employee is still working but will need to take time off in increments.
Example: An employee undergoing chemotherapy works in the morning, has chemotherapy treatment in the afternoon, and will need a day to recover.
- Reduced Leave
An employee is still working but is on a reduced schedule working certain number days of the week while on leave for the rest.
Example: Employee normally works Monday-Friday but is now only working Monday, Wednesday and Friday for the next 8 weeks to care for a family member with a serious medical condition.
Next Steps for Employers
Now that you know what Maine’s PFML program is all about, and how it will impact employers and employees, let’s take a look at some next steps to compliance.
- Begin by familiarizing yourself with the specifics of the law. Knowing the eligibility criteria, benefits, and employer obligations is crucial.
- Review your current private paid leave policies to see if they meet the criteria for exemption. Maine’s Earned Paid Leave does not qualify as a comparable plan. **More likely than not, your current plan will not qualify.**
- Talk with your payroll provider to ensure that your tax withholdings are setup prior to January 1st, 2025.
- Starting January 1st, 2025, be sure to make payroll tax withholdings of 0.5% from employee wages. If you have more than 15 employees, begin to match 0.5% of employee wages. Remit these withholding to the state.
- Provide communication and education to your managers and employees regarding this program.
- Update your employee handbook with information on your private leave policy or the ME PFML Program.
- Print and hang labor law poster on ME PFML when available.
Maine PFML Resources
Register for Our PFML Webinar
Join us on Tuesday, September 17th at 2pm for a webinar on the Maine Paid Family and Medical Leave Program and its’ impact on employers and employees. We will be joined by the Director of the State program, Luke Monahan!
Download our Guide to Compliance
This eGuide will provide all of the details you need to know about the program.
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