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The Maine Department of Labor released the final rules for the Paid Family and Medical Leave (PFML) program set to begin January 1, 2025. All businesses in Maine will be subject to the provisions of the new law. The legislature passed the PFML statute in 2023, and while the program will open at the beginning of 2025, employees will not be able to access benefits through the program until 2026.
Contributions to the program are scheduled to begin on January 1, 2025. For employers with less than 15 employees, 0.5% of wages will be contributed and may be directly deducted from wages. For employers with greater than 15 employees, a 1% contribution will come from the employer, but the employer may deduct half of the contribution from the employees’ wages. No more than 0.5% can come from the employee. Benefits are currently expected to start in 2026 and allow for up to 12 weeks of paid leave for employees.
Credit unions should prepare to begin withholding 0.5% of pre-tax wages from their employees beginning on January 1 and depending on size, should allocate an additional 0.5% to contribute to the program. All Maine employers will be required to post an additional poster in their workplaces providing information to employees regarding the program. Early in the year, the Maine Department of Labor will open a portal and credit unions will need to create an account in the portal to file wage reports and contribution payments. After April 1, 2025, credit unions wishing to adopt a private plan in lieu of the state plan may submit an application for consideration.
For more information on the Paid Family and Medical Leave program, credit unions can consult the Maine Department of Labor website or reach out to a member of the League’s Governmental Affairs team.