On May 20, 2024, the Maine Department of Labor (DOL) released proposed rules for the Paid Family and Medical Leave Program. The public comment period is now open, continuing into July 8. On Monday June 10 at 9 a.m. the DOL will hold a public hearing for stakeholders and interested parties to comment on the proposed rule. At some point following the public comment period, the DOL will release a final version of the rule. The Maine Department of Labor is accepting comments online via their rulemaking webpage.
The proposed rule outlines implementation procedures and program details relating to the following topics: Definitions, Coverage, Use and Types of Leave, Eligibility, Notice and Undue Hardship, Benefits, Claims, Fraud and Ineligibility, Premium, Elective Coverage, Substitution of Private Plans, Returning from Leave, Appeals, and more.
As a reminder, premium contributions begin January 1, 2025 and benefits will be available May 1, 2026. The contribution rate is 1% of employees’ gross wages, up to the social security maximum, split equally (50/50) between employers and employees. Employers with fewer than 15 employees will not have to pay the employer’s portion of the premium but must still collect and remit the employee portion.
Regarding private equivalent plans, the proposed rule states that applications for substitution may be made after January 1, 2026, but that an exemption may not be effective prior to April 1, 2026. Applications for substitution must be submitted on a form provided by the Department and will be accepted on a rolling basis. Finally, the employer is responsible for premiums until the effective date of an approved application for substitution.
At this point, the rule is not final and it is possible that changes are made between the proposed rule and the final rule. Unum will provide an update once the rule is finalized.