This bill makes Maine state income tax applicable to paid family and medical leave benefits that are not included in a recipient's federal adjusted gross income. Individuals receiving these benefits can elect to have 5% state income tax withheld from their payments when filing a new claim. The bill aligns Maine's tax treatment with federal rules by requiring benefits to be reported as taxable income for state purposes, unless they were already counted toward federal income. It also mandates that the benefits administrator inform claimants about the tax implications and withholding options at the time of filing.
LD 1249 delays Maine's Paid Family and Medical Leave Benefits Program implementation. It moves the program's effective date from January 1, 2026 to July 1, 2027, and postpones when claims processing begins from May 1, 2026 to November 1, 2027. The bill also adjusts related deadlines, including the actuarial study requirement for fund solvency from February 1, 2026 to August 1, 2027. This directly affects employers (who must start contributions on January 1, 2025) and employees (who will access benefits starting July 2027).
LD 539, an emergency bill, repeals Maine's Paid Family and Medical Leave Benefits Program that was scheduled to begin on January 1, 2025. The bill stops all future contributions to the program and requires refunds for any contributions already paid by employers and employees. This repeal directly affects employers and employees across Maine who would have been required to participate in the program under the existing law. The legislation removes the program from state statute, eliminating its administrative framework and future obligations.
This bill repeals Maine's mandatory paid family and medical leave program, making participation voluntary instead. It limits the program to employers with 50 or more employees and requires the Department of Labor to refund all contributions made under the previous mandatory system to both employers and employees by June 2026. Unappropriated funds from the leave program must be transferred to the state's general fund by June 30, 2026. The changes take effect retroactively to October 25, 2023.
This bill exempts agricultural employers and employees from Maine's Paid Family and Medical Leave Benefits Program, directly affecting those working in agriculture as defined by state and federal law. It requires the Department of Labor to refund all contributions paid by agricultural employers and self-employed individuals to the program, including any premiums deducted from employee wages that must be returned to workers. The refunds apply retroactively to October 25, 2023, when contributions began. The legislation aims to halt economic harm to the agricultural sector by eliminating these financial obligations.
LD 406 repeals Maine's paid family and medical leave program and requires the state to refund all contributions collected from employers and employees since January 1, 2025. The bill stops future contributions and mandates immediate refunds to taxpayers to address economic harm to businesses and workers. As an emergency measure, it bypasses Maine's standard 90-day legislative waiting period for immediate effect. This directly affects Maine employers and employees who had begun paying into the program in 2025.
LD 1712 amends Maine's Paid Family and Medical Leave program to adjust requirements for employees and employers. It requires employees to give reasonable notice before taking leave and allows employers to deny leave based on specific, defined hardships (such as having fewer than 15 employees, a summer labor shortage, or more than 25% of staff already on leave), without review of such decisions. The bill also revises benefit calculations to replace 65% of average weekly wage (with 90% replacement for wages up to 50% of the state average and 66% for higher wages), shortens application deadlines for benefits (with waivers for good cause), and modifies premium payments so employers deduct 50% of the cost from employee wages while covering the remaining 50%.
