On December 4, 2024, the Maine Department of Labor (DOL) adopted finalized rules for the Maine Paid Family and Medical Leave Program (PFML). This rulemaking follows the Maine Legislature’s passage of the new law in 2023. Employer contributions and employee pay deductions to fund these benefits begin on Jan. 1, 2025.  Employees can begin receiving paid leave benefits effective May 1, 2026.

The finalized rules offer comprehensive details on the implementation and enforcement of Maine’s PFML program by the Department of Labor. While these rules carry few surprises and are largely consistent with the revised proposed rules discussed in previous blogs, there are several key differences highlighted below that employers should note:

Good Cause Definition: A “good cause” standard is now included within the definitions section of the rule. This will clarify circumstances which allow employees with “good cause” additional time to apply for benefits or request an appeal of a determination. The finalized rules define “good cause” as any serious health condition or any physical, intellectual, or linguistic limitation that prevents filing.

Waiting Period Adjustment: The final rules added a seven-day waiting period. Employees will receive benefits following the first seven calendar days of leave.

Notice and Undue Hardship: Employers can still determine undue hardship even if an employee provides reasonable notice of 30 days. An employer’s determination of undue hardship will not be considered reasonable unless the following are established: (1) the employer provided a written explanation of the undue hardship to the employee; (2) the employee retains the ability to take leave within a reasonable time frame relative to the proposed schedule; and (3) the employer has made a good faith attempt to work out a schedule for such leave that meets the employee’s needs without unduly disrupting the employer’s operations, subject to the approval of the employee’s health care provider.

Benefit Calculation Update: The calculation of the average weekly wage is now determined by dividing the applicant’s reported wages in their base period by fifty-two.

Private Plan Substitution: Employers can substitute a similar private plan for the state plan starting April 1, 2025.

With payroll contributions beginning on January 1, 2025, it is crucial for employers to fully understand their new responsibilities under the law. These final regulations represent a significant step in providing employers clarity as to their compliance obligations.