What happened?

On July 1, 2025, Maine enacted LD 55, amending its Earned Paid Leave law to expand how much paid time off employees can accrue annually. The law allows employees to accumulate more leave year-over-year without reducing new accruals due to carryover.

Overview:

• Accrual Flexibility: Employees can now accrue up to 40 hours of paid leave each year, even if they carry over unused leave from the previous year.

• Higher Leave Balances: Total leave balances may exceed 40 hours—potentially reaching 80 hours—depending on how much is carried over and accrued.

• Usage Limit Unchanged: Despite higher accrual potential, employers may still limit employees to using only 40 hours of leave per year.

• Enforcement: The Maine Department of Labor is directed to enforce the new provisions using existing resources. It remains to be seen whether further rulemaking will clarify how the changes will be implemented.

Additional Information:

Background: Previously, carried-over leave reduced how much new leave an employee could earn, capping total balances at 40 hours. LD 55 removes that restriction, aligning Maine’s policy more closely with states like Colorado and localities like Allegheny County, PA.

Source References

• Maine HP 19 – An Act to Amend the Law Governing the Accrual of Earned Paid Leave
• Maine Earned Paid Leave

Resources

• Maine Earned Paid Leave Page
• Maine FAQs

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.