An Act Regarding the Treatment of Vacation Time upon the Cessation of Employment
Maine Legislature, Session 130, LD 0225
Committee Amendment CA_A_H871 (House)
Amends: 26 MRSA §626

COMMITTEE AMENDMENT" A" to H.P. 160, L.D. 225, "An Act Regarding the 
Treatment of Vacation Time upon the Cessation of Employment" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 26 MRSA §626, first 1, as amended by PL 2017, c. 219, §11, is further 
amended to read: 
An employee leaving employment must be paid in full no later than the employee's 
next established payday. Any overcompensation may be withheld if authorized under 
section 63 5 and any loan or advance against future earnings or wages may be deducted if 
evidenced by a statement in writing signed by the employee. Whenever the terms of 
employment or the employer's established practice includes provisions for paid vacations, 
vacation pay on cessation of employment has the same status as wages earned. All unused 
paid vacation accrued pursuant to the employer's vacation policy on and after Januaty 1, 
2023 must be paid to the employee on cessation of employment unless the employee is 
employed by an employer with 10 or fewer employees or by a public employer. If the 
employee's employment is governed by a collective bargaining agreement that includes 
provisions addressing payment of vacation pay upon cessation of employment. the 
collective bargaining agreement supersedes this paragraph. 
Sec. 2. 26 MRSA §626, 5th 1, as amended by PL 1991, c. 162, is further amended 
to read: 
An action for unpaid wages under this section may be brought by the affected employee 
or employees or by the Department of Labor on behalf of the employee or employees. An 
employer found in violation of this section is liable for the amount of unpaid wages and,m 
all accrued vacation pay that must be paid to the employee or employees on cessation of 
employment pursuant to this section. In addition, the judgment rendered in favor of the 
employee or employees must include a reasonable rate of interest, an additional amount 
equal to twice the amount of those unpaid wages and that accrued vacation pay as liquidated 
damages and costs of suit, including a reasonable attorney's fee. 
COMMITTEE AMENDMENT 
COI'v1MIITEE AMENDMENT "/3( to H.P. 160, L.D. 225 
Sec. 3. 26 MRSA §626, 6th 1, as amended by PL 2017, c. 219, §12, is further 
amended to read: 
Within 2 weeks after the sale of a business, the seller of the business shall pay 
employees of that business any wages earned while employed by the seller. If the terms of 
employment or the employer's established practice includes provisions for paid vacations, 
vacation pay on cessation of employment has the same status as wages earned. All unused 
paid vacation accrued pursuant to the employer's vacation policy on and after January 1, 
2023 must be paid to the employees on cessation of employment unless the employer has 
or fewer employees or is a public employer. If the employees' employment is governed 
by a collective bargaining agreement that includes provisions addressing payment of 
vacation pay upon cessation of employment, the collective bargaining agreement 
supersedes this paragraph. The seller of a business may comply with the provisions of this 
paragraph through a specific agreement with the buyer in which the buyer agrees to pay 
any wages earned by employees through employment with the seller and to honor any paid 
vacation earned under the seller's vacation policy. 
Sec. 4. 26 MRSA §626, as amended by PL 2017, c. 219, §§11 and 12, is further 
amended by enacting at the end a new paragraph to read: 
For the purposes of this section, "public employer" means the State, a county, a 
municipality, the University of Maine System, the Maine Community College System, a 
school administrative unit and any other political body or its political or administrative 
subdivision.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively. 
SUMMARY 
This amendment provides that all unused vacation pay accrued pursuant to the 
employer's vacation policy on and after January 1, 2023 must be paid to the employee on 
cessation of employment unless the employee is employed by an employer with 10 or fewer 
employees or by a public employer. It also provides that, if the employee's employment is 
governed by a collective bargaining agreement and that agreement includes provisions 
addressing payment of vacation pay upon cessation of employment, the collective 
bargaining agreement supersedes this provision oflaw. 
COMMITTEE AMENDMENT