Advocates and lawmakers in May 2023 rallied outside the Maine State House in support of Paid Family and Medical Leave, which was signed into law later that spring. (via Maine Center for Economic Policy)
The Maine Department of Labor has adopted the final rules for the new paid family and medical leave program.
The department was required to adopt the rules by Jan. 1, which is when employers and employees will begin contributing a portion of wages to fund the program that will allow eligible public and private sector workers to take up to 12 weeks of paid leave for reasons such as illness, to care for a loved one or the birth of a new child.
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Employees will be able to access the program starting May 2026, allowing time for funds to accumulate to cover administrative costs and benefit payouts.
“We’ve really taken our job, I think, seriously in listening to Mainers, both employers and workers,” said Luke Monahan, director of the paid family and medical leave program for the DOL.
He added that the rule is stronger due to the integration of public feedback and the department is “excited to now have a final rule in place as we continue to stand up this program that will have such positive impacts for Maine’s workforce.”
With the contribution start date just weeks away, the department is holding a series of webinars this month to walk employers through the process. Webinars for employees who wish to apply for the benefit will be held closer to the start date, according to a news release from the department.
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The department also made an informational flyer explaining what employers need to do in preparation for the start of contributions. Earlier this week, there was a recorded information session for employers explaining the online contribution portal that they will need to use. Another session for third-party administrators will be held at noon on Dec. 10.
Public feedback
The final rules come after the department hosted two rounds of public input, receiving more than 1,600 comments, which covered a range of subjects, such as how small businesses will be affected by another tax or premium. One comment suggested the rules should be considered “major substantive,” which would require legislative review before final adoption.
There were more than 150 comments encouraging the department to ensure the proposed rule remains robust and supports workers in accessing the program. Without providing specifics on what should be changed in the rule, there were some comments urging the department to find ways to strengthen the law so it provides greater protections to employees.
In a written response to the totality of the second period comments, the department said it does not have authority to eliminate or broadly change the law and noted that state statute explicitly categorizes the rule as routine technical, which does not require legislative review before final adoption.
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The Maine State Chamber of Commerce, which raised several issues with the plan throughout the public comment periods, said in a statement Wednesday that it continues to have concerns. In particular, it is worried about there being less than one month between the adoption of the rules and the program’s implementation in the new year.
Chamber President and CEO Patrick Woodcock argued that timeline would “impact the program rollout’s success.” Woodcock also reiterated one of the business group’s chief complaints, that employers that choose to opt in to a comparable private plan, as the rules allow, “are required to contribute to a program they will never use.”
Final policy details
Destie Hohman Sprague, executive director of the Maine Women’s Lobby and convener of the Maine Paid Family Leave Coalition, said in a statement Wednesday that the group supports the DOL’s final policy.
“These rules lay the groundwork for a stronger, more equitable future where Mainers can care for themselves and their loved ones without financial hardship,” Hohman Sprague said. “Even as we wait for the program’s launch, today’s progress affirms our commitment to ensuring paid family and medical leave becomes a permanent reality for everyone in our state.”
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With the high volume of feedback, the department made changes to the draft rules between each public comment period to reach the final version.
One area that got several revisions was around who, exactly, a worker could take time from work to help in times of illness. Between the first and second round of public comment, the department issued updated rules that clarified the definition of “like” family by removing the term “affinity relationship” that was added in the initial draft rules. Statute already defines “like” family as having a significant personal bond with someone regardless of biological or legal relationship.
The department also updated the timeline for when employers could apply to opt-out of the state program and instead choose a similar private plan. This change came after feedback from the business community in the first round of public comment that employers should be able to opt-out before paying into the state plan.
Monahan said the last round of changes were largely clarifications and language clean-ups, rather than big, substantive alterations.
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One such area had to do with the appeal process, with the DOL providing an extended timeline for someone with “good cause” to appeal a decision, such as a denial of benefits or an issue with the amount of benefits awarded. Under the rules, “good cause” is defined as a case of serious health condition or other types of physical, intellectual or linguistic limitations.
Monahan also pointed out that the final language made clarifications to how benefits are calculated and how average weekly wage will be determined.
The department also rewrote a portion of the rule that sparked some confusion around “undue hardship” on an employer and what constitutes “reasonable notice” for an employee to inform their employer about their intent to take leave. Monahan said that 30 days is the standard seen in other states, but Maine’s program includes an avenue for employers to claim undue hardship even if that much notice is given.
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