Last week, the Maine Department of Labor (MDOL) unveiled an updated set of regulations for the state’s new Paid Family and Medical Leave Program. The public is now invited to provide feedback on these new rules, which businesses will be required to follow.
The protracted rule-making process is the result of legislation advanced this year by Democratic lawmakers and signed into law this summer by Gov. Janet Mills (D) as part of a larger budget bill. That bill, among other things, established the Paid Family and Medical Leave Program with a starting appropriation of $25 million.
Beginning in the Spring of 2026, Maine workers will be eligible to take up to 12 weeks of paid leave to care for a sick family member, as well as to bond with a newborn baby or newly-adopted child.
Also eligible for leave are those experiencing a serious health condition who are rendered unable to work for an extended period.
[RELATED: MDOL Receives 300 Public Comments on Proposed Rules for Paid Family and Medical Leave Program]
Although many of the major structural elements of this program were already outlined by the Legislature, much of the specifics were left up to MDOL and a commission formed to administer the program.
In other words, the details of how the program would actually function were left up to unelected bureaucrats rather than being articulated by lawmakers prior to voting on the program.
The rules established by the MDOL provide extensive details concerning the relevant administrative procedures, specifically outlining the essential requirements that the program will enforce on businesses in Maine.
An earlier draft of these rules raised numerous concerns for the state’s business community. A revised version of the rules addressed some, but not all, of these criticisms.
Click Here for More Information on the Paid Family and Medical Leave Program
Among the major changes advanced by the MDOL in these updated rules are some alterations to the process by which businesses can deny an employee’s request for leave on the basis that it would cause “undue hardship” to the employer.
Originally, businesses had “the burden to prove the undue hardship,” but under the updated rules, this is no longer a requirement.
Instead, “an employer may reasonably determine that scheduling of leave creates an undue hardship,” unless “sufficient notice has been provided.” That said, employers may still be able to establish “that, in the specific context of the employer’s business, the amount of notice provided was insufficient.”
The rules outline three requirements that must be met by an employer for their claim of undue hardship to be met, including providing the employee a written explanation of why their request for leave would be harmful to the business.
Employees, however, must retain “the ability to take leave within a reasonable time frame relative to the proposed schedule,” and “a good faith attempt” must be made to work out a schedule that would not be disruptive of the employer’s operation.
The MDOL also moved to redefine qualifying non-family relationships, as the original approach drew concern for its lack of clarity and potential for abuse.
“Affinity relationships” have now been replaced with “the existence of a significant personal bond,” bringing the rules into alignment with the language contained in state statutes.
26 M.R.S. §850-A(19)(G) outlines a number of qualifying familial relationships, including “an individual with whom the covered individual has a significant personal bond that is or is like a family relationship, regardless of biological or legal relationship.”
The rules go on to provide some guidance on how the “existence of a significant personal bond” may be demonstrated, such as by an emergency contact designation, the expectation to provide care, or cohabitation.
Another concern raised by members of the business community with regard to the original version of these rules was the lack of notification to employers of an employee’s claim status.
The revised rules address this by explicitly including the employer in the list of those who will be notified when an application for benefits is accepted, rejected, or reconsidered.
The MDOL’s original approach to implementing the Legislature’s directive to allow businesses the option of substituting private plans also drew criticism for the lengthy period of time during which employers would be required to contribute to the state program before having the ability to opt out.
When the rules were revised, the MDOL shortened this period from sixteen months to just four months, allowing employers to stop contributing to the state-run program much sooner, likely saving many businesses a substantial sum of money.
That said, applications for a private plan substitution will now cost $250 and an additional $250 will be charged as an administrative reimbursement fee if the application is approved.
The rules state that these fees may increase after January 1, 2026 based on inflation or a determination from the MDOL that they do not “cover the actual cost for administering private plans.”
Click Here to Read the Updated Draft of the Program Rules
Public comment on the revised rules will be accepted by the MDOL until September 30 at 5pm.
Comments may be submitted online at www.maine.gov/labor/rulemaking/ or mailed to the Paid Family and Medical Leave Program at 50 State House Station, Augusta, Maine 04333-0050.
The MDOL will also be taking comments in person on September 17 at 9 am in the Frances Perkins Room located at 45 Commerce Drive in Augusta.
It is emphasized on the MDOL’s website that public comments should be limited only to the revised portions of these rules.
3 months off.
3 months of temp workers at twice the normal rate.
Time training new temp.
What if the temp is a better employee?
Higher taxes for everyone in the state too.
I bet Mills & co can find even more ways to destroy businesses here in Maine if they really try.
Between the new paid leave bill and the BOI federal regs which kicked in in January, there will be no small businesses in Maine. The Democrats hate small business. https://www.cohencpa.com/knowledge-center/insights/january-2024/what-entities-are-required-to-collect-and-report–ownership-information
Remember the private/public business relations is just plain old Fascism. Just like migrant is an illegal, do not play the lefts word games.