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Bill > LD1273


ME LD1273

ME LD1273
An Act to Make Paid Family and Medical Leave Voluntary


summary

Introduced
03/25/2025
In Committee
03/25/2025
Crossed Over
Passed
Dead
06/03/2025

Introduced Session

132nd Legislature

Bill Summary

Part A of this bill repeals the provisions in law that established the paid family and medical leave benefits program. Part A requires the Department of Labor to refund contributions made by employers and self-employed individuals to the Department of Labor under the paid family and medical leave benefits program and requires an employer that deducted a portion of the premium required for an employee from that employee's wages to remit that portion of the premium to the employee as part of the employee's wages. Part A also requires the State Controller to transfer unappropriated funds from the Department of Labor, Paid Family and Medical Leave Insurance Fund, Other Special Revenue Funds account to the unappropriated surplus of the General Fund. Part B of the bill establishes a voluntary paid family and medical leave program for employers of 50 or more employees and also allows individual employees whose employers do not participate in the program to voluntarily participate. Part B requires the Commissioner of Labor to contract with an insurance company authorized to do business in this State to provide this coverage after a competitive bidding process. The commissioner is required to issue the request for proposals no later than January 1, 2026, and voluntary paid family and medical leave coverage must be available for purchase no later than January 1, 2027. The program provides employees who are eligible for paid family and medical leave with 60% of their average weekly wage, up to a maximum amount based on the cap on wages eligible for social security benefits, for up to 6 weeks per year.

AI Summary

This bill makes paid family and medical leave in Maine voluntary instead of mandatory, specifically for employers with 50 or more employees. The legislation repeals the previously established mandatory paid family and medical leave program and requires the Department of Labor to refund all contributions made by employers and self-employed individuals to the program. The bill establishes a new voluntary paid family and medical leave program that employers can choose to participate in, with coverage available starting January 1, 2027. Under this voluntary program, eligible employees can take up to 6 weeks of family leave or medical leave in a benefit year, receiving 60% of their average weekly wage, with wages capped at the federal Social Security Administration's benefit base limit. Employees will be entitled to return to their job or an equivalent position after taking leave, and employers are prohibited from retaliating against employees who use this leave. The program will be implemented through a competitive bidding process to contract with an insurance company, and the Department of Labor will be responsible for overseeing the program, including developing an outreach program and submitting annual reports to the Governor and Legislature. The bill is designed to give employers and employees more flexibility in addressing family and medical leave needs.

Committee Categories

Labor and Employment

Sponsors (10)

Last Action

Placed in Legislative Files (DEAD) (on 06/03/2025)

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