Update Applicable to:	Effective Date
All Employers with at least 1 worker in Maine	January 1, 2025: PFML Rules May 1, 2026: PFML Benefits Begin April 1, 2025: Wage Reporting April 30, 2025: Premium Payments

What happened?

On December 4, 2024, the Maine Department of Labor approved and published the final rules for Maine’s Paid Family and Medical Leave Program that launches on January 1, 2025.  

Overview:

Maine has adopted final rules for its Paid Family and Medical Leave (PFML) program, which requires employers to provide up to 12 weeks of paid leave for eligible employees, funded by a 1% payroll tax split between employers and employees. (Title 26 § 850-A et. seq.) 

• This affects employers by imposing new administrative responsibilities, including managing payroll contributions, handling leave requests, and ensuring compliance with the program’s requirements. 
• Payroll contributions start January 1, 2025; benefits available from May 1, 2026. 
• Starting January 1, 2025, any employer with at least one Maine-based employee must begin payroll withholdings.  
• Employers include client companies in employee leasing arrangements. 
• All employees earning wages in Maine, excluding federal employees, incarcerated persons, and students in work-study programs. 
• All employers must register on the online portal to begin wage reporting and premium payments on April 1, 2025, with payments due by April 30, 2025; the portal also enables business registration, payroll processor designation, and allows self-employed individuals and tribal governments to elect coverage. 
• The public comments and the Department’s responses can be found under “The Rules” section on the webpage, and a one-page informational flyer outlining what employers need to do to prepare for January contributions is available under the “Resources” section. 

Additional Details:

Maine Paid Family and Medical Leave (PFML) Program Rules Guide Summary for Employers: 

Types of Leave 

• Continuous Leave: Leave taken in consecutive days or weeks. 
• Intermittent Leave: Leave taken in varying periods. 
• Reduced Schedule Leave: Leave that reduces the typical work schedule. 

Eligibility 

• Wage Requirement: Employees must have earned wages in Maine at least 6 times the state average weekly wage in the first four of the last five completed calendar quarters. 
• Application Timing: Applications for benefits must be submitted no more than 60 days before the anticipated start date and no more than 90 days after the start date of leave. 

Notice and Undue Hardship 

• Employee Notice: 30 days’ written notice for leave, or as soon as feasible in emergencies. 
• Undue Hardship: Employers can claim undue hardship if the leave significantly impacts business operations or incurs significant expenses. 

Application and Approval Process 

• Required Documentation: If applicable, proof of identity, reason for leave, and documentation from a healthcare provider. 
• Employer Notification: Employers are notified of claims and can provide additional information or claim undue hardship within 10 business days. 

Benefits Calculation and Payment 

• Calculation: Based on a tiered wage system: 
  • Tier 1: Wages up to 50% of the state average weekly wage. 
  • Tier 2: Wages above 50% of the state average weekly wage. 
• Payment: Via direct deposit or debit card, with a 7-day waiting period for medical leave. 

Premiums 

• Employer Contribution: 
  • 15 or More Employees: Remit 100% of the premium, with up to 50% deductible from employees’ wages. 
  • Employers with fewer than 15 Employees: Remit 50% of the premium, with up to 50% deductible from employees’ wages. 
• Due Date: Premiums are due quarterly. 

 Private Plan Substitution 

• Application: Employers can apply to substitute a private plan that provides substantially equivalent benefits. 
• Validity: Approved substitutions are valid for three years and must cover all employees within the employer’s Federal Employer Identification Number (FEIN). 

 Returning from Leave 

• Job Protection: Employees employed for at least 120 consecutive days are entitled to be restored to their position or an equivalent one upon return from leave. 

 Appeals 

• Appeal Process: Employers and employees can appeal decisions related to benefits, undue hardship, penalties, and other issues within 15 business days. 

The above is a summary, and Vensure encourages employers to read the rules for further details.  

Source References

• Maine DOL Press Release
• Maine Dept. of Labor Issues Proposed Rules for PFML Program (VensureHR)

Resources

• Maine Paid Family and Medical Leave Resources
• Maine Paid Family and Medical Leave Program Contributions Flyer

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