A New Law in Maine: Paid Family and Medical Leave Act

By Sherree L. Craig, CEBS

In 2023, the Maine Legislature passed "The Maine Paid Family and Medical Leave Act." This law will apply to all employers except for the federal government, tribes, and self-employed persons.  

This insurance program is still in development and, as of this writing, is going through the state's rulemaking process. What we know now are some of the basics, including:

• Eligible workers will have access to 12 weeks of paid leave per year beginning in
  May 2026. The benefit will be up to 90% of the employee's average weekly wage. Higher wage earners will cap at 50% of Maine's average weekly wage (currently $1,103.71).
• The employer and employees will pay for the benefits through a shared payroll tax of up to 1% of earnings. The tax will start Jan. 1, 2025.
• Employers with more than 15 employees will pay 1% of wages, but employers can share this cost 50/50 with the employees.
• Employers with less than 15 employees contribute .05% of wages but can deduct the entire amount from the employees' wages.
• Eligible leaves include:
  • Caring for a family member
  • Bonding
  • Medical
  • Military caregiver
  • Safe leave (domestic violence, stalking, human trafficking, etc.)

We will follow the progress of the rulemaking process and provide further updates. Many of our partner insurance companies plan to design programs to complement the state's final requirements, as many individuals will lose income protection due to the benefit thresholds set by the program. 

Sherree L. Craig, CEBS can be reached at 207-236-4311 or by email at scraig(at)allenif.com

Allen Insurance and Financial is an independent, 100% employee-owned insurance and wealth management and investment planning agency with offices in Rockland, Camden, Belfast, Southwest Harbor and Waterville, Maine. Online: AllenIF.com 

Allen Financial, 31 Chestnut St., Camden, ME 04843. (207) 236-8376. Securities and Advisory Services offered through Commonwealth Financial Network®, Member FINRA, SIPC, a Registered Investment Adviser. Fixed insurance products and services are separate from and not offered through Commonwealth Financial Network.