The Acadia Benefits team has been busy working with our customers to prepare for Maine’s new Paid Family and Medical Leave (PFML) program. Beginning May 1, 2026, eligible workers will have 12 weeks of paid time off available for family leave, medical leave, safe leave or leave related to a family member’s impending military deployment. Maine is the 13th state to establish a paid leave program.
Virtually every business in Maine will be impacted and while we await final details from the Department of Labor (final rules must be adopted by January 1, 2025) employers need to get ready now. I recently presented with Leora Kirk from KMA HR and Aimee Parsons from Ogletree Deakins, in a webinar, Preparing for Maine’s Paid Family Medical Leave Act. The recording provides an overview of the law, it’s implications for business, and what businesses can do to prepare.
History of the Maine Paid Family and Medical Leave Program (ME PFML)
In July 2023, Governor Mills signed a budget that included creating a paid family and medical leave program for the state. The 1st set of draft rules were issued by the DOL in the spring of 2024, followed by a public comment period. A 2nd set of draft rules were issued in late August 2024, and a public hearing and public comment period closed September 30th. A more detailed timeline of the program, and additional information about PFML can be found on the DOL website.
What happens next?
Under the current draft rules, all businesses in Maine will be required to contribute to the PFML program starting January 1, 2025. All employers, regardless of their intent of offering a state-run or private plan*, will need to start remitting premium (1.0% of wages capped at the social security wage base) to the state’s pre-funding reserve beginning January 1, 2025.
- Employers with 15 or more covered employees: Shall remit one hundred percent (100%) of the premium but may deduct up to fifty percent (50%) of the premium from the employees’ wages.
- Employers with fewer than 15 employees: Shall remit fifty percent (50%) of the premium but may deduct up to fifty percent (50%) of the premium from employees’ wages.
* Employers may apply to substitute the state-run plan, with an approved private plan, after April 1, 2025. We expect further clarification on this process once the program details are finalized.
In preparation for the upcoming January 1, 2025 program start, the DOL recently released two helpful resources:
- What Employers Need to Know about Program Contributions provides an overview of what businesses need to know and actions to take in advance.
- PFML Employee Labor Poster is available to download and share with your employees.
If you have any questions about what you can do now to prepare for this new program, please be in touch. We are happy to schedule a time to discuss details further and our team is always available to help!
Michelle “Shelly” Paules
207.8224384
MPaules@AcadiaBenefits.com
This information is general and is provided for educational purposes only. It reflects our understanding of the available guidance as of the date shown and is subject to change. It is not intended to provide legal advice. You should not act on this information without consulting knowledgeable advisors.
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