An Act To Strengthen the Unemployment Insurance System To Better Serve Maine Workers
Maine Legislature, Session 130, LD 1571
Committee: Labor and Housing
Sponsors: FECTEAU, BENNETT, CLOUTIER, CUDDY, GERE, HEPLER, TUTTLE, CURRY, VITELLI
Amends: 26 MRSA §1043, 26 MRSA §1044, 26 MRSA §1051, 26 MRSA §1086, 26 MRSA §1191, 26 MRSA §1192, 26 MRSA §1193, 26 MRSA §1194-A, 26 MRSA §1198, 26 MRSA §1199, 26 MRSA §1200

Legislative Document
No. 1571
H.P. 1168
House of Representatives, April 27, 2021
An Act To Strengthen the Unemployment Insurance System To 
Better Serve Maine Workers
Received by the Clerk of the House on April 23, 2021.  Referred to the Committee on 
Labor and Housing pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 
401.
ROBERT B. HUNT
Clerk
Presented by Speaker FECTEAU of Biddeford.
Cosponsored by Senator BENNETT of Oxford and
Representatives: CLOUTIER of Lewiston, CUDDY of Winterport, GERE of Kennebunkport, 
HEPLER of Woolwich, McDONALD of Stonington, TUTTLE of Sanford, Senators: CURRY 
of Waldo, VITELLI of Sagadahoc.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  26 MRSA §1043, sub-§17, ¶B, as amended by PL 1991, c. 548, Pt. D, §2, 
is further amended to read:
B.  An individual, including corporate officers, is considered "partially unemployed" 
in any week of less than full-time work if the individual's wages payable from any 
source for such week are not $5 or more in excess of 150% of the weekly benefit 
amount the individual would be entitled to receive if totally unemployed and eligible, 
except that remuneration payable or received as holiday pay is not considered wages 
for the purpose of this subsection and except that any amounts received from the 
Federal Government by members of the National Guard and organized reserve, 
including base pay and allowances, or any amounts received as a volunteer firefighter, 
as a volunteer emergency medical services person or as an elected member of the 
Legislature, are not considered wages for the purpose of this subsection.
Sec. 2.  26 MRSA §1044, sub-§1, as amended by PL 1979, c. 515, §6, is further 
amended to read:
1.  Waiver of rights void; penalty.  Any agreement by an individual to waive, release 
or commute his the individual's rights to benefits or any other rights under this chapter shall 
be is void. Any agreement by an individual in the employ of any person or concern to pay 
all or any portion of an employer's contributions, required under this chapter from such 
employer, shall be is void. No An employer shall may not directly or indirectly make or 
require or accept any deduction from wages to finance the employer's required 
contributions required from him, or require or accept any waiver of any right hereunder by 
any individual in his the employer's employ or discourage or otherwise deter any individual 
from applying for or receiving unemployment compensation benefits.
Any employer or officer or agent of an employer who violates any provision of this 
subsection shall is, for each offense, be guilty of a Class E crime and liable to an employee 
whose rights are adversely affected by a violation of this section for any amount of unpaid 
unemployment compensation benefits that the employee would otherwise have received.
A judgment rendered in favor of an employee in an action brought to recover unpaid 
unemployment compensation benefits under this section must include the unpaid 
unemployment compensation benefits at a reasonable rate of interest, the costs of suit 
including a reasonable attorney's fee and an additional amount equal to twice the amount 
of unpaid unemployment compensation benefits as liquidated damages.
Sec. 3.  26 MRSA §1051, sub-§9, as enacted by PL 1999, c. 464, §4, is repealed.
Sec. 4.  26 MRSA §1086 is enacted to read:
§1086.  Report on effectiveness of unemployment compensation
1.  Annual measurement of effectiveness of unemployment compensation.  The 
bureau shall implement an ongoing system to measure the effectiveness of unemployment 
compensation benefits on an annual basis by:
A.  Identifying the percentage of unemployed individuals receiving unemployment 
compensation benefits, examining the demographics of eligible individuals and 
determining the reasons why unemployed individuals are not receiving benefits, 
including the demographics of those individuals; and
B.  Determining the adequacy of unemployment compensation benefits to replace 
wages and meet necessary living expenses for high-wage, medium-wage and low-wage 
earners.
2.  Benchmarks established.  The bureau shall annually establish benchmarks to:
A.  Target increases in the percentage of unemployed individuals receiving 
unemployment compensation benefits, with the goal of covering at least 50% of 
unemployed individuals by 2025; and
B.  Ensure that the average weekly unemployment compensation benefit amount is 
sufficient to raise a family of 3 above the federal poverty level for a family of that size.
3.  Report.  By March 15, 2022 and annually thereafter, the bureau shall report to the 
joint standing committee of the Legislature having jurisdiction over labor and housing 
matters on:
A.  The benchmarks established under subsection 2 for the preceding year and the 
progress in meeting the benchmarks;
B.  A comparison of the percentage of unemployed individuals receiving 
unemployment compensation benefits in this State and the adequacy of those benefits 
compared to those provided in other New England states;
C.  Demographics of individuals receiving unemployment compensation benefits, 
including employment history, age, gender, income, geographic location, ethnicity and 
race, and an estimate of the percentage of unemployed individuals and the 
demographics of those that did not receive benefits; and
D.  Proposed benchmarks for the subsequent year.
If the bureau fails to meet its benchmarks for the preceding year, it shall identify the 
obstacles that prevented it from reaching those benchmarks and present a plan for 
addressing those obstacles to the joint standing committee along with any necessary 
legislation to implement that plan for the subsequent year.
The report under this subsection must also include notice of, and the rationale for, any 
reduction in aggregate funding for navigator grants provided in section 1200 when such 
funding is reduced by an amount equal to or more than 25% of the prior year's funding.
4.  Public hearing required.  When the bureau presents a plan under subsection 3 to 
the joint standing committee of the Legislature having jurisdiction over labor and housing 
matters, the joint standing committee shall conduct a public hearing on the bureau's plan 
and may introduce any legislation that the joint standing committee determines necessary 
to improve the bureau's ability to reach its benchmarks for subsequent years.
Sec. 5.  26 MRSA §1191, sub-§3, as amended by PL 2017, c. 284, Pt. CCCCC, §1, 
is further amended to read:
3.  Weekly benefit for partial unemployment.  Each eligible individual who is 
partially unemployed in any week must be paid a partial benefit for that week.  The partial 
benefit is equal to the weekly benefit amount less the individual's weekly earnings in excess 
of $25, except that, beginning the first full benefit week beginning on or after January 1, 
2018, the partial benefit is equal to the weekly benefit amount less the individual's weekly 
earnings in excess of the greater of $100 or 50% of gross wages.  The following amounts 
are not considered wages for purposes of this subsection:
A.  Amounts received from the Federal Government by a member of the National 
Guard and organized reserve, including base pay and allowances;
B.  Amounts received as a volunteer firefighter or as a volunteer emergency medical 
services person;
C.  Amounts received as an elected member of the Legislature; and
D.  Earnings for the week received as a result of participation in full-time training under 
the United States Trade Act of 1974 as amended by the United States Trade and 
Globalization Adjustment Assistance Act of 2009 up to an amount equal to the 
individual's most recent weekly benefit amount.
Sec. 6.  26 MRSA §1191, sub-§6, as corrected by RR 2009, c. 2, §77, is amended 
to read:
6.  Supplemental benefit for dependents.  An individual in total or partial 
unemployment and otherwise eligible for benefits must be paid for each week of that 
unemployment, in addition to the amounts payable under subsections 2 and 3, the sum of 
$10 $25 for each unemancipated child of the individual who in any part of the benefit year 
and during any part of the individual's period of eligibility is, in fact, dependent upon and 
is being wholly or mainly supported by the individual, and who is under the age of 18, or 
who is 18 years of age or over and incapable of earning wages because of mental or physical 
incapacity, or who is a full-time student as defined in Title 39-A, section 102, subsection 
8, paragraph C, or who is in that individual's custody pending the adjudication of a petition 
filed by the individual for the adoption of the child in a court of competent jurisdiction and 
for each such child for whom that individual is under a decree or order from a court of 
competent jurisdiction to contribute to that child's support and for whom no other person 
is receiving allowances hereunder. In no instance may the dependency benefits as provided 
in this subsection be more than 50% 75% of the individual's weekly benefit amount.
The commission shall prescribe regulations as to who may receive a dependency allowance 
when both spouses are eligible to receive unemployment compensation benefits.
No individual may be eligible to receive dependency allowances as provided in this 
subsection for any week during which that individual's spouse is employed full time 
provided that the spouse is contributing some support to their dependent or dependents. For 
purposes of this subsection, "employed full time" means the receipt of any wages, earnings, 
salary or other income equivalent to that amount that would be received for a 40-hour work 
week.
Sec. 7.  26 MRSA §1192, sub-§4-A, as enacted by PL 1981, c. 220, is repealed.
Sec. 8.  26 MRSA §1193, sub-§1, as amended by PL 2017, c. 117, §§6 to 8, is 
further amended to read:
1.  Voluntarily leaves work.
A.  For the week in which the claimant left regular employment voluntarily without 
good cause attributable to that employment or other compelling and substantial reason 
not directly attributable to employment but which would cause a reasonable person to 
leave work under similar circumstances.  The disqualification continues until the 
claimant has earned 4 times the claimant's weekly benefit amount in employment by 
an employer.  A claimant may not be disqualified under this paragraph if:
(1)  The leaving was caused by the illness or disability of the claimant or an 
immediate family member and the claimant took all reasonable precautions to 
protect the claimant's employment status by promptly notifying the employer of 
the need for time off, a change or reduction in hours or a shift change and being 
advised by the employer that the time off or change or reduction in hours or shift 
change cannot or will not be accommodated;
(2)  The leaving was necessary to accompany, follow or join the claimant's spouse 
in a new place of residence;
(3)  The leaving was in good faith in order to accept new employment on a 
permanent full-time basis and the new employment did not materialize for reasons 
attributable to the new employing unit;
(4)  The leaving was necessary to protect the claimant or any member of the 
claimant's immediate family from domestic abuse or the leaving was due to 
domestic violence that caused the claimant reasonably to believe that the claimant's 
continued employment would jeopardize the safety of the claimant or any member 
of the claimant's immediate family and the claimant made all reasonable efforts to 
preserve the employment; or
(5)  The claimant's employer announced in writing to employees that it planned to 
reduce the work force through a layoff or reduction in force and that employees 
may offer to be among those included in the layoff or reduction in force, at which 
time the claimant offered to be one of the employees included in the layoff or 
reduction in force and the claimant's employer accepted the claimant's offer, 
thereby ending the employment relationship.; or
(6)  The leaving was the result of the loss of child care or transportation when no 
reasonable alternatives were available within the time necessary to maintain 
employment.
Separation from employment based on the compelling family reasons, including those 
listed in subparagraphs (1), (2) and, (4) and (6) does not result in disqualification.
B.  For the duration of his a claimant's unemployment period subsequent to his the 
claimant's having retired; or having been retired from his regular employment as a 
result of a recognized employer policy or program, under which he the claimant is 
entitled to receive pension payments, if so found by the deputy, and disqualification 
shall continue continues until the claimant has earned 6 times his the claimant's weekly 
benefit amount in employment by an employer;
C.  For the duration of a leave of absence or sabbatical leave that has been mutually 
agreed to by the employee and the employer.; and
D.  For the duration of a partial separation or reduction of hours initiated at the 
employee's request and agreed to by the employee and employer;
Sec. 9.  26 MRSA §1194-A is enacted to read:
§1194-A.  Expedited unemployment claims; mass layoff or reduction in hours
1.  Employer application assistance.  When an employer required to make 
contributions to the Unemployment Compensation Fund under this chapter lays off or 
reduces the hours of employment for more than 25% of the employer's employees at an 
establishment or facility where such employees were employed at the time of the layoff or 
reduction in hours, the employer shall file an initial claim for unemployment compensation 
benefits, along with all wage and other information needed to process the claim, on behalf 
of each such employee in accordance with rules adopted by the Department of Labor.  The 
employer shall notify each employee on behalf of whom the employer filed a claim for 
unemployment compensation benefits under this section of the filing of the claim.  The 
department shall obtain authorization from the employee on whose behalf an employer 
filed a claim for unemployment compensation benefits before processing the claim or 
paying unemployment compensation benefits under this section.  Once the department 
obtains authorization from the employee, it shall process the claim and pay benefits in 
accordance with this chapter.
2.  Claim for benefits.  If an employer fails to file a timely claim for unemployment 
compensation benefits for an employee in accordance with this section, and the employee 
does not file a timely claim for unemployment compensation benefits for that separation, 
the employee's claim is deemed to have been filed on the Sunday of the initial week the 
employee would have otherwise been eligible to receive unemployment compensation 
benefits following that separation.  The employer has the burden of demonstrating 
compliance with the provisions of this section.
3.  Penalty.  Each failure of an employer to file a claim for unemployment 
compensation benefits in accordance with this section constitutes a separate offense.  The 
Department of Labor shall issue a warning to the employer for the first violation.  The 
department shall assess a fine, in accordance with rules adopted by the department, for each 
subsequent offense.
Sec. 10.  26 MRSA §1198, sub-§1-A is enacted to read:
1-A.  Improving the efficiency and effectiveness of the work-sharing program.  To 
improve the efficiency and effectiveness of the work-sharing program, the commissioner 
shall:
A.  Employ a work-sharing manager and dedicate staff resources to ensure prompt 
processing of employer applications and respond to questions related to the work-
sharing program from both employers and employees;
B.  Consult with representatives of employers and employees to establish and carry out 
a plan for effective outreach and education to increase the use of the work-sharing 
program;
C.  Track the experience of employers and participants in the work-sharing program 
and generate metrics that will inform decisions about how best to improve the program, 
including how to target work-sharing outreach and information; and
D.  Conduct industry research to identify employers that may derive some value from 
work-sharing and conduct targeted outreach to those employers identifying the 
potential benefit of the work-sharing program to them.
Sec. 11.  26 MRSA §1198, sub-§3, as enacted by PL 2011, c. 91, §1 and affected 
by §3, is amended to read:
3.  Approval or rejection of the work-sharing plan.  The commissioner shall approve 
or reject a work-sharing plan in writing within 15 days of receipt of the plan.  The 
commissioner's decision is final and not subject to appeal.  The eligible employer may 
submit another work-sharing plan for approval, and a determination must be made based 
upon the new information submitted by the eligible employer.
Sec. 12.  26 MRSA §1199, sub-§3, as enacted by PL 2019, c. 617, Pt. B, §1, is 
repealed.
Sec. 13.  26 MRSA §1200 is enacted to read:
§1200.  Peer navigator program
1.  General requirements.  No later than January 1, 2022, the commissioner shall 
establish the peer navigator program in accordance with this section to award navigator 
grants to qualified entities; to raise awareness of the availability of unemployment 
compensation benefits among underserved individuals and assist those individuals in 
accessing those benefits; to promote access to reemployment services, including education 
and training opportunities; to assist unemployed and underemployed individuals in 
accessing resources necessary to meet their basic needs during the reemployment process; 
and to identify systemic obstacles to receiving benefits or services necessary to support 
successful reemployment efforts.  The commissioner shall also provide appropriate support 
from bureau staff to entities receiving navigator grants under this section, including support 
resolving the issues of individual claimants and systemic issues that present barriers to 
timely receipt of unemployment compensation benefits or other reemployment services.  
Funding for these purposes, including for additional bureau staff that may be needed, is as 
provided in subsection 4.
2.  Qualified entities.  To be eligible to receive a navigator grant under this section, an 
entity must:
A.  Demonstrate that it has existing peer relationships or could readily establish such 
relationships with unemployed or underemployed individuals;
B.  Have the capability to carry out the duties of this section, including knowledge of 
eligibility requirements, application processes and other substantive provisions and 
processes related to the unemployment compensation program, reemployment 
services, education and training services and other resources necessary to help 
unemployed or underemployed individuals increase their economic security; 
C.  Maintain strict confidentiality standards to ensure the privacy of all information 
collected from individuals receiving navigator services; and
D.  Provide navigator services under this section without charge to the individual 
receiving those services.
3.  Commissioner's duties; award criteria; navigator services.  The commissioner 
shall establish standards for the awarding of navigator grants to qualified entities in 
accordance with this subsection. 
A.  The commissioner may award multiple grants to perform one or more of the 
navigator services described in this section if the grants are distributed in a manner that 
best achieves the comprehensive purpose of the peer navigator program throughout the 
State.
B.  To support the maintenance of relationships between qualified entities and 
unemployed and underemployed individuals and to ensure a high quality of service, 
the commissioner shall award grants to qualified entities for multiple-year periods in 
accordance with state purchasing standards under Title 5, chapter 155.  Multiple-year 
grants are subject to a qualified entity satisfying performance standards set forth in the 
grant award.
C.  The commissioner shall give priority for navigator grants to a qualified entity that:
(1)  Has an organizational mission that requires them to represent the interest of 
unemployed or underemployed individuals;
(2)  Represents a membership base of workers; or
(3)  Is a recognized source of support or advocacy for underserved groups including 
racial and ethnic minorities, persons with low literacy and persons with disabilities.
D.  Navigator services provided by qualified entities that receive navigator grants must 
be coordinated with and supplement, not supplant, services provided by the 
Department of Labor. 
E.  The commissioner shall ensure that the following navigator services are provided 
through qualified entities awarded navigator grants in accordance with this section and 
that these navigator services are coordinated throughout the State:
(1)  Outreach to identify individuals who are potentially eligible for unemployment 
compensation benefits but who may be unaware of their eligibility, including 
public relations activities using media or similar techniques;
(2)  Targeted public education initiatives related to eligibility requirements for 
unemployment compensation benefits, applying for and making ongoing claims 
for unemployment compensation benefits, the relationship between unemployment 
compensation benefits and education and training programs, work-sharing 
arrangements established under section 1198, the fact-finding and appeals 
processes and other relevant program benefits and requirements;
(3)  Individual assistance in applying for and making ongoing claims for 
unemployment compensation benefits or other procedural functions related to 
unemployment compensation benefits;
(4)  Assistance in identifying appropriate reemployment services, including 
opportunities for education, training and apprenticeship, to increase employability 
for high-wage, in-demand jobs;
(5)  Referrals for unemployed or underemployed individuals to resources necessary 
to help those individuals meet their basic needs during the reemployment process;
(6)  Appropriate training to ensure the quality and accuracy of navigator services, 
including training on how to most effectively assist communities that are 
underrepresented in receiving unemployment compensation benefits and 
reemployment services;
(7)  Identification of systemic issues creating barriers to receipt of unemployment 
compensation benefits and successful reemployment for unemployed or 
underemployed individuals and presentation of those issues to the commissioner, 
who shall promptly resolve or relay those issues to the joint standing committee of 
the Legislature having jurisdiction over labor and housing matters; and
(8)  Direct legal services when appropriate.
All navigator services provided under this subsection must be performed in a manner that 
is culturally and linguistically appropriate to the needs of the population being served, 
including individuals with limited English proficiency, persons with low literacy and 
persons with disabilities, and must recognize the varying levels of digital literacy and 
access to technology among individuals in need of services.
4.  Funding for navigator grants.  The Unemployment Program Administrative Fund 
planned yield and predetermined yield established under section 1167 must be adjusted 
each year to provide additional funds in the amount of $3,000,000 for the peer navigator 
program established under this section, including funds for bureau staff administering the 
peer navigator program.  The commissioner shall promptly provide payments to qualified 
entities awarded navigator grants under this section to enable them to cover ongoing 
expenses in a timely manner.
Sec. 14.  Promoting accountability in unemployment compensation.  No later 
than January 1, 2022, the Department of Labor, Bureau of Unemployment Compensation 
shall complete an analysis to determine why unemployed individuals do not apply for 
unemployment compensation benefits, including identifying systemic obstacles identified 
to individuals' receipt of benefits.  The analysis must include the characteristics of 
unemployed individuals who do not file, including employment history, age, gender, 
income, geographic location, ethnicity and race.  Data collection methodologies used to 
conduct this analysis may be modeled on the nonfiler supplement to the United States 
Current Population Survey established by the United States Department of Commerce, 
Bureau of the Census and the United States Department of Labor, Bureau of Labor 
Statistics, or a similarly effective instrument designed by the Bureau of Unemployment 
Compensation for this purpose.  The analysis may include reliable data already collected 
by or available to the Bureau of Unemployment Compensation.
Sec. 15.  Department of Labor staff assessment; Bureau of Unemployment 
Compensation.  By January 15, 2022, the Commissioner of Labor shall provide a report 
to the Joint Standing Committee on Labor and Housing assessing the staff capacity within 
the Department of Labor, Bureau of Unemployment Compensation to comply with the 
performance core measures established by the United States Department of Labor related 
to unemployment insurance benefit promptness and accuracy and the timeliness of appeal 
determinations.  The report must also describe any technology needs and other staffing 
necessary to ensure the accessibility of the unemployment compensation system to 
applicants and recipients.
SUMMARY
This bill requires the Department of Labor, Bureau of Unemployment Compensation 
to examine the adequacy of Maine's unemployment compensation system in meeting the 
needs of today's workforce and economy, to establish benchmarks for program 
improvement and to annually measure progress in reaching those benchmarks.  It also 
requires an assessment of the staffing capacity within the Department of Labor and requires 
the Commissioner of Labor to submit a report of these findings to the Joint Standing 
Committee on Labor and Housing.  It establishes the peer navigator program to increase 
access to unemployment compensation benefits for underserved individuals and makes 
several amendments in current law to support these goals.