What Employers Need to be Doing Now: Preparing for Maine Paid Family and Medical Leave Premium Contributions

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In just a few weeks, employee contributions for Maine’s Paid Family and Medical Leave program (ME PFML) will begin for employers who are sharing the cost of the program with their employees and the Acadia Benefits team has been working with our customers to prepare for this new law. The Maine Department of Labor recently released/updated several employer resources and we wanted to share these resources and remind employers of what they need to be doing to prepare.

What is the ME PFML?

In July 2023, Governor Mills signed a budget that included creating a paid family and medical leave program for the state. Beginning May 1, 2026, eligible workers will have up to 12 weeks of paid time off available per year for family leave, medical leave, safe leave, or leave related to a family member’s impending military deployment. You can learn more about the history of the program and find additional details on Maine’s Department of Labor website, linked here. Key dates to be aware of include:

  • January 1, 2025 – Payroll contributions begin.
  • April 1, 2025 – Employers may apply to substitute the state-run plan, with an approved private plan.
  • April 30, 2025 – First quarter wage reports and premium payments are due.
  • May 1, 2026 – Benefits will be available for eligible workers.

Employer to do’s:

Any employer with at least 1 Maine-based employee is required to take immediate action. This includes withholding contributions from your employees’ paychecks (if sharing the cost) beginning with the first pay date in January 2025 and registering in the Maine Paid Leave Portal when it becomes available in January. The DOL provides resources for employers on their website, including:

What to share with employees?

Transparency is key and communicating the details is important before January. Your employees have likely heard about ME PFML and have questions about how the new law will affect their benefits and pay. Employees should be notified now of any payroll contributions beginning in January and the PFML Employee Labor Poster referenced below should also be posted now. 

Another resource from the DOL that you can share with your employees:

What’s next?

Employers in Maine may opt to fulfill their obligations under the state’s PFML law by implementing a private plan instead of participating in the state-run program. Our team is working with customers to evaluate if the state-run plan, or private plan, would be the best option for their employees and business. Applications for private plan substitutions will begin in April 2025 through the Maine Paid Leave Portal.

If you have any questions about 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!

 

Robert Kennedy
207.822.4376
RKennedy@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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