Maine Paid Family and Medical Leave Program: What Businesses Should Know

The Maine Paid Family and Medical Leave Act established the Maine PFML program that offers covered employees up to 12 weeks of job-protected leave for qualifying reasons and partial wage replacement if they meet eligibility requirements. The law went into effect in 2023, and components of the law have implementation dates as of Jan. 1, 2025 (contributions from employers and employees) and May 1, 2026 (access to benefits).

How Is Maine Paid Family and Medical Leave Funded?

The Maine PFML program is funded by employers and employees, with the contribution rates dependent on the size of the business. The initial contribution rate that will be in place from 2025 until 2027 is 1 percent of wages for employers with 15 or more employees, of which no more than 0.5% can be deducted from employee wages. Businesses with fewer than 15 employees must contribute 0.5% of wages and may deduct the full amount from employee wages.

Employers must remit contributions quarterly through a designated online portal to the Maine PFML Fund on or before the last day of the month following the end of the quarter. The portal went live Jan. 6, 2025, so businesses can register and handle additional administrative duties regarding the program. Initial quarterly reporting and payment submission is due April 30, 2025.

Determining whether an individual must pay into the fund is based on the same test of locality used for Maine unemployment law, which determines whether an employee is subject to Maine Unemployment Insurance and is included on a Maine UI report. Refer to other resources at the end of this article for links to an FAQ.

Who Is Eligible for Maine PFML?

A covered individual is any private, full-time or part-time employee (and some public employees not associated with a collective bargaining agreement) who earns wages in Maine. Independent contractors may also opt-in to the Maine PFML program, provided they report earned wages and submit contributions to the fund.

A covered individual or employee is eligible for leave and the ability to be restored to their job or an equivalent position if they have worked at least 120 days prior to taking the leave. However, leave is available if an employee has worked fewer than 120 days, but they would not have job restoration protection. There are additional eligibility requirements including, but not limited to, a covered employee earning at least six times the state’s average weekly wage (SAWW) in four of the five previous quarters and meeting application deadlines for taking leave.

What Are Qualified Reasons for Taking Maine PFML?

Qualified reasons for taking paid family and medical leave in Maine include:

• Providing care for a family member with a serious health condition*
• Caring for one’s own serious health condition*
• Bonding with a new child in the first 12 months following a birth, adoption, or placement through foster care
• Addressing issues arising from acts of violence, assault, sexual assault, or stalking for yourself or a family member
• Caring for medical or mental needs of a family member who is currently or formerly in the military
• Bereaving a family member’s death that happened while on active duty
• Donating an organ for transplant

*A serious health condition is described as illness, injury, physical and mental condition that results in impairment, in-patient hospital or hospice care, or continuing treatment under the care of a doctor or medical practitioner, pregnancy, and recovery from childbirth.

What Benefits Are Available Under Maine PFML?

In addition to up to 12 weeks of job-protected leave in a benefit year, the Maine Paid Family and Medical Leave program offers covered employees partial wage replacement. The weekly benefit amount is determined by an employee’s average weekly wage (EAWW) relative to the state average weekly wage (SAWW).

• If the EAWW is less than or equal to 50% of the SAWW, the employee receives 90% of the EAWW.
• If the EAWW is more than 50% of the SAWW, the employee receives a weekly benefit that is 90% of one-half of the SAWW, plus 66% of the EAWW that exceeds one-half of the SAWW, up to the maximum benefit.

Is There a Private Plan Exemption to ME PFML?

A business or employer can opt out of the Maine PFML program if they offer a “substantially equivalent” plan that, under Maine Paid Family and Medical Leave Act, must be approved as either a self-funded plan paid through a surety bond to the state or be a fully funded plan purchased from an insurance company that is authorized to do business in Maine.

Businesses in Maine can apply for a private plan beginning April 1, 2025, and there is an application fee and, if approved, an administrative fee. Approved private plans are only valid for three years.

Are There Reporting Requirements for Maine PFML?

Employers have several reporting requirements:

• Provide new hires with a notice that describes benefits and other related information to the program within 30 days of hiring, and in the employee’s primary language.
• Post a notice in a conspicuous place at work that explains the benefits available under the Maine Paid Family and Medical Leave program. Notices must be in English and in each language primary for at least three employees if that notice is available from the Maine PFML program department.

The Maine Department of Labor will issue workplace posters in multiple languages, as well as model new hire notices.

Looking Forward

Businesses seeking to enhance their recruitment and retention efforts while looking to help maintain the well-being of employees could use a mix of benefits in addition to the Maine PFML program. Paychex also provides HR Services to help businesses.

Additional Resources

• Maine PFML website
• Maine PFML FAQ