House lawmakers in Augusta rejected two bills during Monday’s session taking aim at Maine’s new Paid Family and Medical Leave (PFML) Program.
While one bill would have made participation in the program voluntary, the other would have repealed the program in its entirety.
The PFML Program, enacted last year as part of a spending bill, has imposed a one percent payroll tax on most working Mainers and their employers to fund paid leave for all employees statewide, with benefits not scheduled to begin until May of 2026.
Mainers began contributing to the program on January 1 of this year, sixteen months ahead of when benefits are first scheduled to become available.
[RELATED: Maine’s New Paid Leave Rules — Here’s What Businesses and Workers Should Expect]
Although businesses are allowed to substitute a qualifying private plan, at least several months worth of non-refundable contributions were required to be paid before their applications may be submitted and approved.
This policy has sparked push back from the Maine State Chamber of Commerce and Bath Iron Works, prompting them to file a joint lawsuit earlier this year.
[RELATED: Bath Iron Works, Maine Chamber Sue State Over Paid Leave Rules]
LD 406, sponsored by Rep. Joshua Morris (R-Turner), would have repealed this program entirely. Any money that employers, employees, and self-employed individuals have paid into this program so far would have been returned to them in full.
Whatever remained of the $25 million starting appropriation would have been transferred into the General Fund.
Rep. Morris spoke in support of this bill during Monday afternoon’s session, citing Maine’s high cost of living and tax rates.
“This would put money back in people’s pockets immediately,” he said.
Morris further cited concerns about the program’s rollout and noted how businesses were unable to receive an exception for several months after tax collection began.
He went on to suggest that some businesses have cancelled their short term disability policies to pay for the PFML program, the benefits of which would not be made available until 2026.
Rep. Amy Roeder (D-Bangor), speaking in opposition to the bill, cited what she called the high level of support that this program has enjoyed among Mainers going back to when it was first adopted last year.
She also asserted that the MDOL has, to date, met all of the “ambitious benchmarks” outlined in the establishing legislation.
Rep. Matthew D. Beck (D-South Portland) explained that the PFML is “good for workers and for business,” citing a number of statistics concerning the impact of paid leave programs on workforce participation.
“Maine’s current law already has guardrails,” Rep. Beck said. “This is a responsible program filled with strong oversight and clear rules.”
He then urged lawmakers to “give [the PFML program] a chance to succeed.”
The House then voted to accept the Committee’s partisan majority Ought Not to Pass report by a roll call vote of 75-65.
This vote was then sent to the Senate for concurrence where it is expected that the legislation will also fail to garner the requisite support.
Because LD 406 was drafted as an emergency bill, two-thirds of both the House and the Senate would have needed to vote in support of the proposal.
Although the bar is set higher for emergency bills, it is able to take effect immediately after being signed into law, whereas legislation typically is not effectuated until 90 days after the final day of the session.
[RELATED: GOP Lawmakers Look to Repeal Maine’s New Mandatory Paid Leave Program]
The House also rejected another bill Monday afternoon that aimed to make participation in the PFML program voluntary.
Sponsored by House Minority Leader Billy Bob Faulkingham (R-Winter Harbor), LD 1273 would have repealed the existing program and replace it with entirely new legislation establishing an optional paid leave program for businesses with fifty or more employees.
Individual workers would also have the ability to opt into this program if their employer does not choose to offer it.
Rep. Michael Soboleski (R-Phillips) argued Monday afternoon that this bill gives Mainers “the flexibility they need to thrive,” as it makes the program available without forcing businesses into a program that may not “align with their financial realities.”
According to Rep. Soboleski, this bill both “protects job creators” and “the autonomy of workers” by “prioritizing choice and sustainability.”
Rep. Samuel Lewis Zager (D-Portland), speaking in opposition to LD 1273, argued that maintaining the mandatory nature of the PFML is essential, focusing heavily on the demonstrated positive impacts of mandatory paid leave programs in other states where they have been adopted.
Roeder also expressed opposition to making this program voluntary, citing the exceedingly low participation rate in states that have an optional paid leave system, such as New Hampshire and Texas.
Mandatory works best, she reasoned.
She also pushed back on the idea of offering only one paid leave policy, as would be the case under this bill, noting that employers are currently able to select one of several options.
LD 1273 was then rejected by a roll call vote of 74-65 and sent to the Senate for concurrence where it is expected that lawmakers in that chamber will follow suit.
