State Launches Webinar Series as Maine’s New Payroll Tax & Paid Leave Mandate Looms

The second public comment period for Maine’s new Paid Family and Medical Leave (PFML) Program closed Monday after receiving nearly 600 additional responses from roughly 280 individuals representing both employers and workers from a variety of Maine’s economic sectors.

During the first round of public comment, the Maine Department of Labor (MDOL) received over 1,000 responses from nearly 300 individuals.

The Department must adopt a final set of rules for the program by January 1, 2025.

[RELATED: Maine Businesses Brace for New 1% Payroll Tax and Paid Leave Mandate]

“Thank you to everyone who took the time and effort to submit comments,” said Luke Monahan, Director of Paid Family and Medical Leave. “Your feedback will help us continue to develop this new program in a way that best serves the people of Maine.”

Over the summer, Gov. Janet Mills (D) signed a budget into law that included, among other things, legislation establishing the program with a starting appropriation of $25 million for the Maine Department of Labor (MDOL).

Beginning in the spring of 2026, Maine workers will be eligible to take up to twelve 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 who are experiencing a serious health condition and are rendered unable to work for an extended period, and anyone serving as a caregiver for someone who meets the other conditions.

Employers and employees will begin contributing a new one percent payroll tax to the state on January 1, 2025, sixteen months ahead of when benefits are scheduled to first become available.

Click Here for More Information on the Paid Family and Medical Leave Program

Although many of the major structural elements of this program were already outlined by the Legislature, most of the specifics were left up to MDOL and a commission formed to administer the program. Advancing the bill in this manner allowed lawmakers to get the measure approved without quibbling over details, but it also created a significant amount of uncertainty for Maine businesses that will now be required to comply with various mandates, changes to tax collections, and paid leave allowances.

The rules set by the MDOL go into greater detail with respect to the relevant administrative processes — that is, the nuts and bolts of the requirements the program will impose on Maine businesses. Importantly, every business in Maine will have to determine, based on its number of employees, which set of MDOL regulations it must adhere to.

[RELATED: MDOL Updates Rules for Paid Family and Medical Leave Program, Now Accepting Public Comment]

When the second public comment period closed on September 30, the MDOL launched an education initiative intended to help prepare workers, employers, and self-employed individuals for the program’s 2025 rollout.

A series of “informational webinars” will be hosted by MDOL throughout October in collaboration with the Maine Immigrant’s Rights Coalition, the Maine Paid Leave Coalition, the National Federation of Independent Business (NFIB), and the Maine State Chamber of Commerce.

“This new law will provide critical support for Maine workers during some of life’s most challenging moments. It’s essential that both workers and employers are fully informed and prepared as we implement the Paid Family and Medical Leave program,” said MDOL Commissioner Laura Fortman.

“By ensuring everyone understands the timing, benefits and responsibilities of the law, we can make the transition smoother for all, creating a stronger, more resilient workforce and economy for our state,” Commissioner Fortman continued. “We encourage workers, employers, and self-employed individuals to participate in the upcoming webinars to stay informed and ask questions about the program’s implementation.”

There will be two employer-focused webinars and two worker-focused webinars, each hosted by one of MDOL’s four partner organizations.

Click Here for More Information on These Webinars

“Our mission has been to make sure that every Mainer has access to a paid leave system that works for all,” said Destie Hohman Sprague, Executive Director, Maine Womens Lobby and convener of the Paid Leave Coalition.

“Working alongside state government, we were able to bring this vision to life, and look forward to helping the Maine Department of Labor provide workers with the information they need to understand their rights under the new law,” Sprague said.

“At the Maine State Chamber of Commerce, we are committed to ensuring that all business owners have the resources they need to navigate changes in laws and regulations,” said Patrick Woodcock, President and CEO of the Maine State Chamber of Commerce.

“The introduction of the Paid Family and Medical Leave program brings significant changes for employers, and partnering with the Maine Department of Labor to deliver this educational series is critical in helping them prepare,” Woodcock continued. “By providing clear guidance and answering key questions, we’re ensuring Maine’s businesses stay informed and compliant, allowing them to continue supporting their employees while managing their operations effectively.”

“It is vital that employers with at least one employee become familiar with key dates, responsibilities, and rights under this very impactful law,” said David Clough, NFIB/Maine State Director. “NFIB is pleased to partner with Maine Paid Leave officials to present this important webinar that begins an education process for thousands of affected small employers.”

“The Paid Family and Medical Leave program will undoubtedly advance cultural practices of communal living and intergenerational care for our immigrant families in Maine,” said Mufalo Chitam, Executive Director of Maine Immigrants’ Rights Coalition. “MIRC is proud to have supported the passage of this law.”

More information on the PFML Program will be made available by the MDOL at the following web address when available: https://www.maine.gov/paidleave/.