Maine State Chamber concerned over final Maine Paid Family & Medical Leave program rules and tight implementation timeline

For Immediate Release 
Wednesday, December 4, 2024

Media contact: Jen Webber
Cell: 207-939-0213

​AUGUSTA, Maine (December 4, 2024) – The Maine State Chamber of Commerce expressed continued concerns about the final Paid Family and Medical Leave (PFML) program rules the Maine Department of Labor (MDOL) announced today. Specifically, the Chamber is concerned that the compressed legislative timeline to meet the statutory deadline for implementation is challenging for employers and may undermine the program's successful rollout. The Chamber continues to believe that subjecting payroll taxes on employers and employees that do not intend to use the state system is inconsistent with the state statute and with other states’ PFML programs.
 
“The Maine State Chamber recognizes the Maine Department of Labor is operating against an extremely tight timeline to meet the state PFML program law’s January 1, 2025, implementation deadline, and we appreciate MDOL’s diligence and efforts over the last several months,” said Patrick Woodcock, president and CEO of the Maine State Chamber of Commerce. “Maine’s PFML program is arguably the most significant regulatory initiative in decades, is extremely complex, and the Maine State Chamber and employers across the state are concerned that the tight 3–4-week timeline for implementation will impact the program rollout’s success, and that employers that will opt in to a substantially equivalent private plan are required to contribute to a program they will never use.”

The Chamber notes that several states, including Maryland, Oregon, and Delaware, have revised their PFML implementation timelines to ensure their programs are launched effectively. Maryland, for instance, adjusted its timeline, with contributions now beginning in July 2025 and benefits starting in July 2026. Similarly, Oregon faced delays, pushing the benefits availability date from January 2023 to September 2023. Delaware has also extended its contribution start date from a prior date to January 2025, with benefits scheduled for January 2026.
 
“Ultimately, the DOL should have the flexibility to implement the program unhindered by arbitrary statutory deadlines and on a timeline that works for employees, employers and ultimately the administrator of the State program,” said Woodcock.

Maine businesses have consistently raised concerns regarding the taxation requirement for companies that will opt in to a substantially equivalent private plan from the onset and do not intend to use the state system. Forcing these businesses to contribute to the state fund—even temporarily—is viewed as inconsistent with statute's intent. Comments from the Maine State Chamber argued this provision is unconstitutional. Specifically, the rule amounts to an unconstitutional taking without just compensation, violates the equal protection clause of the Constitution, and violates the due process clause of the Constitution.
 
Woodcock added, “The Maine State Chamber of Commerce urges policymakers to consider adjustments to the PFML program timeline and to remove the tax on employees and employer under existing PFML that will never utilize the state system. Maine’s PFML program should be executed in a manner to ensure an effective implementation. By addressing these concerns now, at the beginning of this upcoming legislative session, Maine can develop a successful PFML program that supports employees while minimizing unintended consequences for employers.”
 
The Maine State Chamber has expressed its concerns and recommendations surrounding Maine’s PFML program with the goal of making Maine’s PFML program more workable for employers and employees throughout the legislative and rulemaking process, including in July 2024 and August 2024.
 
For more information on the Maine State Chamber’s recommendations to MDOL on the proposed PFML rules, please see the Chamber’s June 10, 2024, public hearing testimony before MDOL and a recording of the Maine State Chamber’s June 6, 2024 roundtable with businesses. 

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