Maine’s legislature has amended the state’s Earned Paid Leave (EPL) law through LD 55, changing how EPL is accrued and carried over. Employers operating in Maine should take immediate steps to review and update their leave policies and systems to ensure compliance for when the law takes effect on September 24, 2025.

Under the original EPL statute, employees could accrue up to 40 hours of paid leave annually. However, any unused hours carried over from the prior year would reduce the amount of leave the employee could accrue in the current year because the original statute included a 40-hour overall accrual cap. The amendment increases the maximum overall accrual cap to 80 hours, but the annual accrual and usage limits remain unchanged at 40 hours per year.

Example under the prior rule:

An employee carries over 8 hours from the previous year. That employee could only accrue 32 additional hours in the current year. See Maine Department of Labor’s Frequently Asked Questions and Answers on Earned Paid Leave

LD 55 eliminates this limitation. Employees may now carry over up to 40 hours of unused EPL from the prior year without impeding their ability to accrue a full 40 hours in the current year.

Example under the new rule:

An employee carries over 8 hours from the previous year. That employee may still accrue a full 40 hours in the current year, resulting in 48 hours of accrued leave.

Although the amendment increases the maximum overall accrual cap to 80 hours, the annual accrual and usage limits remain unchanged. That said, employers may limit employees to accruing no more than 40 hours of leave per year and may limit employees to using no more than 40 hours of leave in any given year, even if their total accrued balance exceeds that amount from carry-overs. Under the example above, while the employee has accrued 48 hours of paid leave, the employer may limit the employe to using 40 hours during the year.

Employer Action Items

To remain compliant, employers should:

• Update EPL policies and employee handbooks to reflect the revised carryover rules.
• Review payroll and HR systems to ensure accrual calculations are consistent with the new law.
• Communicate changes to employees clearly and proactively to avoid confusion and ensure transparency.

This amendment simplifies leave management, but it also places new obligations on employers.