An Act To Ensure Fair Calculation of Severance Pay for Maine Workers
Maine Legislature, Session 124, LD 1469
Committee Amendment CA_A_S231 (Senate)
Amends: 26 MRSA §625-B

FIRST llEGULAR SESSION 
COMMITTEE AMENDMENT" A" to S.P. 547, L.D. 1469, Bill, "An Act To 
Ensure Fair Calculation of Severance Pay for Maine Workers" 
Amend the bill by striking out everything after the enacting clause and before the 
emergency clause and inserting the following: 
'Sec. 1. 26 MRSA §625-B, sub-§l, ~, as enacted by PL 1979, c. 663, § 157, is 
amended to read: 
E. 
"Physical calamity" means any calamity such as fire, flood or other natural 
disaster, OF the final oFdeF of any fedeFaL state OF local governmental agency 
including adjudicated bankruptcy. 
Sec. 2. 26 MRS A §625-B, sub-§l, ~, as enacted by PL 1979, c. 663, § 157, is 
amended to read: 
H. "Week's pay" means an amount equal to 1I52nd part of the employee's gross 
"",ages paid to an employee earnings during the 12 months priOF to Felocation OF 
tennination previous to the date of termination or relocation as established by the 
director or the date of the termination or layoff of the employee, should it occur 
earlier, divided by the number of weeks in which the employee worked during that 
period. 
Sec. 3. 26 MRSA §625-B, sub-§3, as amended by PL 2003, c. 624, § 1 and 
affected by §2, is further amended to read: 
3. Mitigation of severance pay liability. There is no liability under this section for 
severance pay to an eligible employee if: 
A. Relocation or termination of a covered establishment is necessitated by a physical 
calamity; 
B. The employee is covered by, and has been paid under the terms of, an express 
contract providing for severance pay that is equal to or greater than the severance pay 
required by this section; 
Page I - 124LR197S(02)-1 
COMMITTEE AMENDMENT 
~~co. 
COMMITIEE AMENDMENT "A "to S.P. 547, L.D. 1469 
C. That employee accepts employment at the new location; eF 
D. That employee has been employed by the employer for less than 3 years • .;...QI 
E. A covered establishment files for protection under 11 United States Code, Chapter 
unless the filing is later converted to a filing under 11 United States Code, Chapter 
1" 
Sec. 4. 26 MRSA §625-B, sub-§10 is enacted to read: 
10. Mass layoff. Whenever an employer lays off 100 or more employees at a 
covered establishment, the employer within 7 days of such a layoff shall report to the 
director the expected duration of the layoff and whether it is of indefinite or definite 
duration. The director shall,.from time to time, but no less frequently than every 30 days, 
require the employer to report such facts as the director considers relevant to a 
determination as to whether the layoff constitutes a termination or relocation under this 
section or whether there is a substantial reason to believe the affected employees will be 
recalled within a reasonable time. 
Sec. 5. Retroactivity. This Act applies retroactively to March 31, 2009.' 
SUMMARY 
This amendment redefines "physical calamity" and "week's pay" in the laws 
governing severance pay. It clarifies that during Chapter 11 bankruptcy proceedings 
there is no right to severance pay unless the filing is later converted to a filing under 
Chapter 7. It includes language regarding a mass layoff and directs an employer to report 
the expected duration of a layoff within 7 days to the Director of the Bureau of Labor 
Standards. The director shall, at least every 30 days, require the employer to update the 
employer's report for the director to determine whether the layoff constitutes a 
termination or relocation. This amendment includes a retroactivity clause dated March 
31,2009. 
!FISCAL :"ion: R£QLlRED 
(See attached) 
COMMITTEE AMENDMENT 
, 
, / 
,\ 
.) 
,) 
) 
) 
'; 
~\ 
(, 
~'. 
: 
Approved: 05/24/09 fraC!. 
LD 1469 
LR 1975(02) 
An Act To Ensure Fair Calculation of Severance Pay for Maine Workers 
Fiscal Detail and Notes 
Fiscal Note for Bill as Amended by Committee Amendment "A" 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Additional costs to the Bureau of Labor Standards within the Department of Labor associated with enforcement of the 
provisions in this legislation can be absorbed within existing budgeted resources. 
LR1975(02) - Fiscal Note - Page 1 of 1