The Maine Department of Labor has released revised rules for the state’s Paid Family and Medical Leave program, making a major change to make the program more business-friendly. The program, set to begin in 2026, will provide a 12-week paid family leave benefit funded by a 1% payroll tax split between workers and employers. Businesses were initially not allowed to opt out of paying the taxes until after the program launched, even if they offered an equivalent private plan. However, the new rules allow businesses with equivalent or better plans to opt out starting in April 2025, a year before the program starts.
The State Chamber of Commerce had criticized the original rules for this issue, but the revised rules aim to address the concerns of businesses. Public comment on the revised rules will continue until Sept. 30, with a public hearing scheduled for Sept. 17. State legislators involved in passing the paid family leave law have expressed support for the Labor Department’s efforts to establish strong rules for the program. They believe the program will be transformative for Maine and are grateful for the opportunity for feedback from both employees and employers. The Paid Family and Medical Leave Program is expected to be a significant benefit for all Mainers, providing access to a new and important benefit.
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