An Act to Implement the Recommendations of the Commission to Develop a Paid Family and Medical Leave Benefits Program
Maine Legislature, Session 131, LD 1964
Committee: Labor and Housing
Sponsors: DAUGHTRY, CLOUTIER, BAILEY, BEEBE-CENTER, BRENNER, CARNEY, CHIPMAN, CURRY, DUSON, GROHOSKI, HICKMAN, INGWERSEN, JACKSON, LAWRENCE, NANGLE, PIERCE, RAFFERTY, RENY, ROTUNDO, TIPPING, VITELLI, ABDI, ANKELES, ARFORD, BELL, BOYLE, BRENNAN, BRIDGEO, CLUCHEY, COLLINGS, COPELAND, CRAFTS, CRAVEN, CROCKETT, DHALAC, DODGE, DOUDERA, EATON, FAY, GATTINE, GEIGER, GERE, GOLEK, GRAHAM, GRAMLICH, HEPLER, HOBBS, JAUCH, KESSLER, KUHN, LAJOIE, LEE, MADIGAN, MALON, MASTRACCIO, MATHIESON, MATLACK, MEYER, MILLETT, MILLIKEN, MONTELL, MOONEN, MORIARTY, MURPHY, O'CONNELL, O'NEIL, OSHER, PAULHUS, PERRY, RANA, RECKITT, RIELLY, ROBERTS, ROEDER, RUNTE, RUSSELL, SACHS, SALISBURY, SARGENT, SAYRE, SHAGOURY, SHAW, SHEEHAN, SKOLD, STOVER, SUPICA, TALBOT ROSS, TERRY, WARREN, WHITE, WILLIAMS, WORTH, ZAGER, ZEIGLER
Amends: 3 MRSA §959, 5 MRSA §12004-I, 26 MRSA §850-O, 5 MRSA §13056

Legislative Document
No. 1964
S.P. 800
In Senate, May 18, 2023
An Act to Implement the Recommendations of the Commission to 
Develop a Paid Family and Medical Leave Benefits Program
Reference to the Committee on Labor and Housing suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator DAUGHTRY of Cumberland.
Cosponsored by Representative CLOUTIER of Lewiston and
Senators: BAILEY of York, BEEBE-CENTER of Knox, BRENNER of Cumberland, CARNEY of Cumberland, CHIPMAN of 
Cumberland, CURRY of Waldo, DUSON of Cumberland, GROHOSKI of Hancock, HICKMAN of Kennebec, INGWERSEN 
of York, President JACKSON of Aroostook, LaFOUNTAIN of Kennebec, LAWRENCE of York, NANGLE of Cumberland, 
PIERCE of Cumberland, RAFFERTY of York, RENY of Lincoln, ROTUNDO of Androscoggin, TIPPING of Penobscot, 
VITELLI of Sagadahoc, Representatives: ABDI of Lewiston, ANKELES of Brunswick, ARFORD of Brunswick, BELL of 
Yarmouth, BOYLE of Gorham, BRENNAN of Portland, BRIDGEO of Augusta, CLUCHEY of Bowdoinham, COLLINGS of 
Portland, COPELAND of Saco, CRAFTS of Newcastle, CRAVEN of Lewiston, CROCKETT of Portland, DHALAC of South 
Portland, DODGE of Belfast, DOUDERA of Camden, EATON of Deer Isle, FAY of Raymond, GATTINE of Westbrook, 
GEIGER of Rockland, GERE of Kennebunkport, GOLEK of Harpswell, GRAHAM of North Yarmouth, GRAMLICH of Old 
Orchard Beach, HEPLER of Woolwich, HOBBS of Wells, JAUCH of Topsham, KESSLER of South Portland, KUHN of 
Falmouth, LAJOIE of Lewiston, LaROCHELLE of Augusta, LEE of Auburn, MADIGAN of Waterville, MALON of 
Biddeford, MASTRACCIO of Sanford, MATHIESON of Kittery, MATLACK of St. George, MEYER of Eliot, MILLETT of 
Cape Elizabeth, MILLIKEN of Blue Hill, MONTELL of Gardiner, MOONEN of Portland, MORIARTY of Cumberland, 
MURPHY of Scarborough, O'CONNELL of Brewer, O'NEIL of Saco, OSHER of Orono, PAULHUS of Bath, PERRY of 
Calais, PERRY of Bangor, RANA of Bangor, RECKITT of South Portland, RIELLY of Westbrook, ROBERTS of South 
Berwick, ROEDER of Bangor, RUNTE of York, RUSSELL of Verona Island, SACHS of Freeport, SALISBURY of 
Westbrook, SARGENT of York, SAYRE of Kennebunk, SHAGOURY of Hallowell, SHAW of Auburn, SHEEHAN of 
Biddeford, SKOLD of Portland, STOVER of Boothbay, SUPICA of Bangor, Speaker TALBOT ROSS of Portland, TERRY of 
Gorham, WARREN of Scarborough, WHITE of Waterville, WILLIAMS of Bar Harbor, WORTH of Ellsworth, ZAGER of 
Portland, ZEIGLER of Montville.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  3 MRSA §959, sub-§1, ¶I, as amended by PL 2021, c. 617, §1, is further 
amended to read:
I.  The joint standing committee of the Legislature having jurisdiction over labor 
matters shall use the following list as a guideline for scheduling reviews:
(2)  Department of Labor in 2023;
(3)  Maine Labor Relations Board in 2025; and
(4)  Workers' Compensation Board in 2025.; and
(5)  The paid family and medical leave benefits program established in Title 26, 
chapter 7, subchapter 6-C in 2029.
Sec. 2.  5 MRSA §12004-I, sub-§54-F is enacted to read:
54-F.   
Labor 
Paid Family and Medical Leave Benefits 
Authority 
Expenses Only 
MRSA 
§850-O 
Sec. 3.  5 MRSA §13056, sub-§4, as enacted by PL 1987, c. 534, Pt. A, §§17 and 
19, is amended to read:
4.  Communication with private sector.  Communicate, on a regular basis, with the 
private sector to inform the private sector of departmental programs and services and the 
paid family and medical leave benefits program established in Title 26, chapter 7, 
subchapter 6-C and to determine the needs, problems and opportunities of the private 
sector;
Sec. 4.  5 MRSA §13056, sub-§5, as amended by PL 2003, c. 159, §1, is further 
amended to read:
5.  Prepare and distribute publications.  Prepare and distribute publications that:
A.  Describe various business development programs within the State that are available 
to Maine businesses;
B.  Describe the various community and economic development programs of the State; 
and
C.  Market the State of Maine and its communities as suitable areas for business 
development; and
D.  Describe the paid family and medical leave benefits program established in Title 
26, chapter 7, subchapter 6-C to educate businesses within the State about the program.
Sec. 5.  26 MRSA c. 7, sub-c. 6-C is enacted to read:
SUBCHAPTER 6-C
PAID FAMILY AND MEDICAL LEAVE
§850-A.  Definitions
As used in this subchapter, unless the context otherwise indicates, the following terms 
have the following meanings.
1.  Administrator.  "Administrator" means the department administering the program 
or an authorized 3rd party conducting any functions necessary to implement the program.
2.  Application year.  "Application year" means the 12-month period beginning on the 
first day of the calendar year in which an individual files an application for family leave 
benefits or medical leave benefits.
3.  Authority.  "Authority" means the Paid Family and Medical Leave Benefits 
Authority, under section 850-O.
4.  Average weekly wage.  "Average weekly wage," as used to establish the maximum 
weekly benefit amount for purposes of this subchapter, means 1/52 of aggregate total wages 
paid in the State for covered employment, as reported on employer contribution reports for 
the calendar year, divided by the arithmetic mean of midmonth weekly covered 
employment reported on employer contribution reports for the calendar year.
5.  Base period.  "Base period" means the first 4 calendar quarters immediately 
preceding the first day of an individual's benefit year.
6.  Benefit year.  "Benefit year" means the 12-month period beginning on the first day 
of the calendar week in which an individual files an application for family leave benefits 
or medical leave benefits.
7.  Commissioner.  "Commissioner" means the Commissioner of Labor.
8.  Contributions.  "Contributions" means the payments made by an employee or self-
employed individual to the fund, as required by this subchapter.
9.  Controller.  "Controller" means the State Controller.
10.  Covered individual.  "Covered individual" means a person who:
A.  Earned at least 6 times the state average weekly wage in wages subject to premiums 
under this subchapter during the individual's base period or elects coverage and meets 
the requirements of section 850-G; and
B.  Meets the administrative requirements outlined in this subchapter and any rules 
adopted pursuant to this subchapter and files an application for family leave benefits 
or medical leave benefits.
11.  Covered service member.  "Covered service member" means:
A.  A member of the United States Armed Forces, including the National Guard and 
the Reserves of the United States Armed Forces, who is:
(1)  Undergoing medical treatment, recuperation or therapy or otherwise receiving 
outpatient treatment; or
(2)  Otherwise on the United States Armed Forces' temporary disability retired list 
for a serious injury or illness that was incurred by the member in the line of duty 
in the United States Armed Forces or a serious injury or illness that existed before 
the beginning of the member's active duty and was aggravated by service in the 
line of duty on active duty in the United States Armed Forces; or
B.  A former member of the United States Armed Forces, including the National Guard 
and the Reserves of the United States Armed Forces, who is undergoing medical 
treatment, recuperation or therapy for a serious injury or illness that was incurred by 
the member in the line of duty in the United States Armed Forces or a serious injury or 
illness that existed before the beginning of the member's active duty and was 
aggravated by service in the line of duty on active duty in the United States Armed 
Forces and manifested before or after the member was discharged or released from 
service.
12.  Department.  "Department" means the Department of Labor.
13.  Domestic partner.  "Domestic partner" has the same meaning as in Title 1, section 
72, subsection 2-C.
14.  Employee.  "Employee" means a person who may be permitted, required or 
directed by an employer in consideration of direct or indirect gain or profit to engage in 
any employment but does not include an independent contractor.
15.  Employer.  "Employer" means:
A.  Any person, sole proprietorship, partnership, corporation, association or other 
business entity that employs employees at a location in this State;
B.  The State, including the executive, legislative and judicial branches, and a state 
department or agency;
C.  A county, city, town or municipal agency;
D.  An agent of an employer, the State or a political subdivision of the State; and
E.  A public employer, as defined in section 962, subsection 7.
"Employer" does not include the Federal Government.
16.  Employment.  "Employment" means a service performed for wages.
17.  Employment benefits.  "Employment benefits" means all benefits provided or 
made available to employees by an employer, including, but not limited to, group life 
insurance, health insurance, disability insurance, sick leave, annual or vacation leave, 
educational benefits and pensions.
18.  Family leave.  "Family leave" means leave taken pursuant to section 850-B, 
subsection 1.
19.  Family leave benefits.  "Family leave benefits" means wage replacement paid 
pursuant to sections 850-B and 850-C to a covered individual while the covered individual 
is on family leave.
20.  Family member.  "Family member" means, with respect to a covered individual 
or spouse or domestic partner of a covered individual:
A.  Regardless of age, a child, including a child whose parentage has been determined 
under the Maine Parentage Act or any other biological child, adopted child, foster child 
or stepchild, or a child to whom the covered individual or spouse or domestic partner 
of the covered individual stands in loco parentis or a child the covered individual or 
spouse or domestic partner of the covered individual has under legal guardianship or 
any individual to whom the covered individual or spouse or domestic partner of the 
covered individual stood in any of these relationships when the individual was a minor 
child;
B.  A parent, including a legal parent, biological parent, adoptive parent, foster parent, 
stepparent, de facto parent or legal guardian or a person who stood in loco parentis 
when the covered individual or spouse or domestic partner of the covered individual 
was a minor child;
C.  A grandparent, including a legal grandparent, biological grandparent, adoptive 
grandparent, foster grandparent, stepgrandparent or de facto grandparent;
D.  A grandchild, including a legal grandchild, biological grandchild, adoptive 
grandchild, foster grandchild, stepgrandchild or de facto grandchild;
E.  A sibling, including a legal sibling, biological sibling, adoptive sibling, foster 
sibling, stepsibling or de facto sibling;
F.  A spouse or domestic partner of a covered individual; or
G.  As shown by the covered individual, any other individual with whom the covered 
individual has a significant personal bond that is or is like a family relationship, 
regardless of biological or legal relationship.
21.  Fund.  "Fund" means the Paid Family and Medical Leave Insurance Fund 
established under section 850-E.
22.  Health care provider.  "Health care provider" means an individual licensed to 
practice medicine, surgery, dentistry, chiropractic, podiatry, midwifery or osteopathy or 
any other individual determined by the administrator to be capable of providing health care 
services.
23.  Medical leave.  "Medical leave" means leave taken pursuant to section 850-B, 
subsection 2.
24.  Medical leave benefits.  "Medical leave benefits" means wage replacement paid 
pursuant to sections 850-B and 850-C to a covered individual while the covered individual 
is on medical leave.
25.  Program.  "Program" means the paid family and medical leave benefits program 
established in section 850-B.
26.  Qualifying exigency.  "Qualifying exigency" means a need arising out of a 
covered individual's family member's active duty service or notice of an impending call or 
order to active duty in the United States Armed Forces, including, but not limited to, 
providing for the care or other needs of the military member's child or other family member, 
making financial or legal arrangements for the military member, attending counseling, 
attending military events or ceremonies, spending time with the military member during 
rest and recuperation leave or following return from deployment or making arrangements 
following the death of the military member.
27.  Safe leave.  "Safe leave" means any leave taken because the covered individual or 
the covered individual's family member is a victim of violence, assault, sexual assault under 
Title 17-A, chapter 11, stalking or any act that would support an order for protection under 
Title 19-A, chapter 103. Safe leave under this subchapter applies if the covered individual 
is using the leave to protect the covered individual or the covered individual's family 
member by:
A.  Seeking an order for protection under Title 19-A, chapter 103;
B.  Obtaining medical care or mental health counseling for the covered individual or 
for the covered individual's family member to address physical or psychological 
injuries resulting from the act of violence, assault, sexual assault or stalking or act that 
would support an order for protection under Title 19-A, chapter 103;
C.  Making the covered individual's or the covered individual's family member's home 
secure from the perpetrator of the act of violence, assault, sexual assault or stalking or 
act that would support an order for protection under Title 19-A, chapter 103 or seeking 
new housing to escape the perpetrator; or
D.  Seeking legal assistance to address issues arising from the act of violence, assault, 
sexual assault or stalking or act that would support an order for protection under Title 
19-A, chapter 103 or attending and preparing for court-related proceedings arising from 
the act or crime.
28.  Self-employed individual.  "Self-employed individual" means a sole proprietor, 
a member of a limited liability company or limited liability partnership or an individual 
whose net profit or loss from a business must be reported to the Department of 
Administrative and Financial Services, Bureau of Revenue Services and who resides in the 
State.
29.  Serious health condition.  "Serious health condition" means an illness, injury, 
impairment, pregnancy, recovery from childbirth or physical, mental or psychological 
condition that involves inpatient care in a hospital, hospice or residential medical care 
center or continuing treatment by a health care provider.
30.  Spouse.  "Spouse" has the same meaning as in Title 18-C, section 1-201, 
subsection 54.
31.  State average weekly wage.  "State average weekly wage" means the average 
weekly wage as published by the administrator for the State as a whole for the 12 most 
recently reported months.
32.  Wages.  "Wages" means actual compensation paid to an employee for the 
performance of services.
33.  Weekly benefit amount.  "Weekly benefit amount" means the amount of wage 
replacement paid to a covered individual on a weekly basis while the covered individual is 
on family leave or medical leave as provided in section 850-C.
§850-B.  Paid family and medical leave benefits program established
The paid family and medical leave benefits program is established effective January 1, 
2026. The program is administered by the department. The department may, through 
contract after a competitive bidding process, authorize a 3rd party to conduct any functions 
necessary to implement the program. Any 3rd party acting under a contract to conduct any 
functions of the program must have a meaningful physical presence in the State.
1.  Family leave eligibility.  A covered individual is eligible for family leave for any 
of the following reasons:
A.  To bond with the covered individual's child during the first 12 months after the 
child's birth or the first 12 months after the placement of the child for adoption or foster 
care with the covered individual;
B.  To care for a family member with a serious health condition;
C.  To attend to a qualifying exigency;
D.  To care for a family member of the covered individual who is a covered service 
member;
E.  To take safe leave; or
F.  Any other reason set forth in section 843, subsection 4.
2.  Medical leave eligibility.  A covered individual with a serious health condition that 
makes the covered individual unable to perform the job functions for the position held by 
that covered individual is eligible for medical leave.
3.  Maximum leave requirements.  The following requirements apply.
A.  A covered individual is not eligible for more than 12 weeks of family leave in an 
application year.
B.  A covered individual is not eligible for medical leave for more than 12 weeks in an 
application year.
C.  A covered individual may not take more than 16 weeks, in the aggregate, of family 
leave and medical leave under this subchapter in the same application year.
This subsection does not prevent a covered individual from taking medical leave that is 
immediately followed by family leave when the medical leave is taken during pregnancy 
or recovery from childbirth and is supported by documentation from a health care provider.
4.  Intermittent leave requirements.  Leave permitted by this section may be taken 
by an employee intermittently in increments of not less than 8 hours or on a reduced leave 
schedule otherwise agreed to by the employee and the employer. The taking of leave 
intermittently or on a reduced leave schedule pursuant to this subsection may not result in 
a reduction in the total amount of leave to which the covered individual is entitled under 
this subchapter.
5.  Weekly benefit.  While on family leave or medical leave pursuant to this 
subchapter, a covered individual receives a weekly benefit amount as provided in section 
850-C.
6.  Notice.  In any case in which the necessity for leave under this subchapter is 
foreseeable, an employee shall provide notice to the individual's employer not less than 30 
days before the date the leave is to begin. If the necessity for leave is not foreseeable or 
providing 30 days' notice is not possible, the employee shall provide notice as soon as 
practicable.
7.  Right to benefits; accrual.  The taking of family leave or medical leave may not 
affect an employee's right to accrue vacation time, sick time, bonuses, advancement, 
seniority, length of service credit or other employment benefits, plans or programs. During 
the duration of an employee's family leave or medical leave, the employer shall continue 
to provide for and contribute to the employee's employment-related health insurance 
benefits, if any, at the level and under the conditions coverage would have been provided 
if the employee had continued working continuously for the duration of leave.
8.  Treatment of self-employed individuals.  Subsection 7 does not apply to a self-
employed individual taking family leave or medical leave under this subchapter or to a 
person who is no longer an employee who was an employee when that person began taking 
family leave or medical leave under this subchapter.
9.  Collective bargaining.  This subchapter does not:
A.  Obviate an employer's obligations to comply with any employer policy, law or 
collective bargaining agreement that provides for rights to leave greater than or 
additional to those provided by this subchapter;
B.  In any way curtail the rights, privileges or remedies of any employee under any 
collective bargaining agreement or employment contract; or
C.  Allow an employer to compel an employee to exhaust rights to any sick, vacation 
or personal time prior to or while taking leave under this subchapter.
10.  Concurrent with leave under state and federal law.  Leave taken under this 
subchapter runs concurrently with leave taken under the federal Family and Medical Leave 
Act of 1993, 29 United States Code, Section 2611, et seq., and under subchapter 6-A. 
Employees may take leave under this subchapter while ineligible for leave under the federal 
Family and Medical Leave Act of 1993 in the same application year.
§850-C.  Payment of benefits
1.  Waiting period for medical leave.  Medical leave benefits are not payable during 
the first 7 calendar days of the leave, except that an employee may use accrued sick or 
vacation pay or other paid leave provided under a collective bargaining agreement or 
employer policy during the first 7 calendar days of the leave.
2.  Determination of weekly benefit amount.  The weekly benefit amount paid to 
employees and self-employed individuals on family leave or medical leave is 90% of an 
employee's or self-employed individual's average weekly wage calculated over the past 4 
quarters, except for any bonus pay.
3.  Maximum benefit amount adjustment.  The maximum weekly benefit amount 
calculated under subsection 2 is 120% of the state average weekly wage. By October 1, 
2026 and annually thereafter, the commissioner shall adjust the maximum weekly benefit 
amount as necessary, and the adjusted maximum weekly benefit amount takes effect on 
January 1st of the year following the adjustment.
4.  Prorated benefit.  If a covered individual takes family leave or medical leave on 
an intermittent or reduced leave schedule, the weekly benefit amount must be prorated as 
determined by the administrator.
5.  Reduction of benefit.  The weekly benefit amount must be reduced by the amount 
of wages or wage replacement that a covered individual receives for that period under any 
of the following while on family leave or medical leave:
A.  A government program or law, including, but not limited to, workers' compensation 
under Title 39-A other than for permanent partial disability incurred prior to the family 
leave or medical leave claim, or under other state or federal temporary or permanent 
disability benefits law; or
B.  A permanent disability policy or program of an employer.
§850-D.  Applications and claims for benefits
1.  Procedures and forms.  The administrator shall establish reasonable procedures 
and forms for filing claims for family leave benefits and medical leave benefits under this 
subchapter and shall specify what supporting documentation is necessary to support a claim 
for benefits, including any documentation required from a health care provider for proof of 
a serious health condition and any documentation required by the administrator with regard 
to a claim for safe leave or qualifying exigency leave.
2.  Filing of application.  An individual may file an application for family leave 
benefits or medical leave benefits no more than 60 days before the anticipated start date of 
family leave and medical leave and no more than 90 days after the start date of family leave 
and medical leave. The administrator shall waive the 90-day filing deadline for good cause. 
The administrator shall institute forms and procedures that are not unduly burdensome to 
an individual claiming benefits.
3.  Notification of employer.  The administrator shall notify the relevant employer 
within 5 business days of a claim being filed pursuant to this subchapter.
4.  Confidentiality.  Any medical or health information required under this section 
must be treated as confidential and may not be disclosed except with permission from the 
covered individual who provided it unless disclosure is otherwise required by law. Nothing 
in this section may be construed to require a covered individual to provide as certification 
any information from a health care provider that would be in violation of Section 1177 of 
the federal Social Security Act, 42 United States Code, Section 1320d-6.
5.  Ineligibility.  A covered individual is not eligible to receive family leave benefits 
or medical leave benefits if the administrator finds, through a process established by rule, 
that the covered individual, for the purpose of obtaining these benefits, has willfully made 
a false statement or misrepresentation regarding a material fact or has willfully withheld a 
material fact concerning the facts required to be certified pursuant to this section. The 
administrator shall establish a process by rule for the determination of eligibility under this 
section, including a grievance process for a covered individual determined to be ineligible.
§850-E.  Paid Family and Medical Leave Insurance Fund
1.  Fund established.  The Paid Family and Medical Leave Insurance Fund is 
established to carry out the purposes of this subchapter. The fund is administered by the 
Treasurer of State. Any sums received under this section are not considered revenue of the 
State, but must be held in trust for the exclusive benefit of covered individuals eligible for 
family leave benefits and medical leave benefits under this subchapter and for the 
administration of this subchapter by the administrator. Funds may not be expended, 
released, appropriated or otherwise disposed of for any other purpose and must be expended 
by the administrator as required by this subchapter to pay family leave benefits and medical 
leave benefits to covered individuals eligible to receive benefits and to pay the 
administrative costs of the administrator.
2.  Deposits in fund.  The fund consists of:
A.  Contributions collected pursuant to section 850-F together with any interest earned 
thereon;
B.  Property or securities acquired through the use of money belonging to the fund 
together with any earnings of such property or securities;
C.  Fines and penalties collected under this subchapter; and
D.  Any other money received from any source, including grants, gifts, bequests or 
money specifically designated to be credited to the fund.
3.  Annualized amount.  The fund must maintain an annualized amount of not less 
than 140% of the previous fiscal year's expenditures for family leave benefits and medical 
leave benefits paid and for the administration of the program by the administrator.
4.  Administrative costs.  The costs of administering the program by the administrator 
may not exceed 5% of the amount deposited under subsection 2 for each fiscal year 
following the initial year family leave benefits and medical leave benefits are paid. Money 
may not be commingled with other state funds and must be maintained in a separate 
account.
5.  Payment of benefits.  The administrator shall expend money from the fund to 
provide weekly family leave benefits and medical leave benefits under section 850-C. 
Family leave benefits and medical leave benefits must be paid from the fund to covered 
individuals eligible for benefits. An employer's bankruptcy or noncompliance with this 
subchapter does not interfere with an employee's ability to collect family leave benefits and 
medical leave benefits under this subchapter. Family leave benefits and medical leave 
benefits paid from the fund to such an employee may be recovered through bankruptcy 
proceedings or from the noncomplying employer. The administrator shall institute 
administrative and legal action to recover family leave benefits and medical leave benefits 
paid through the fund.
6.  Report.  Beginning October 1, 2026 and annually thereafter, the administrator shall 
publish a report providing the following information concerning the program for the 
previous fiscal year:
A.  The total eligible claims;
B.  The percentage of eligible claims attributable to medical leave;
C.  The percentage of eligible claims attributable to family leave for the serious health 
condition of a family member;
D.  The percentage of eligible claims attributable to family leave other than for the 
birth, adoption or fostering of a child;
E.  The percentage of eligible claims attributable to family leave for the birth, adoption 
or fostering of a child;
F.  The percentage of eligible claims attributable to family leave for a qualifying 
exigency;
G.  The percentage of eligible claims attributable to family leave for a covered service 
member;
H.  The claimant demographics by age, gender identification, average weekly wage, 
occupation and the type of leave taken;
I.  The percentage of claims denied and the reasons for the denials;
J.  The average weekly benefit amount paid for all claims and by the type of leave 
taken; and
K.  Any changes in gross benefits paid compared to the previous fiscal year.
§850-F.  Premiums
1.  Authorized.  Payroll premiums must be paid in order to finance the payment of 
family leave benefits and medical leave benefits under this subchapter and administration 
of the program.
2.  Employer to remit premiums to fund.  Beginning January 1, 2025, for each 
employee, an employer shall remit to the fund premiums in the form and manner 
determined by the administrator. Premiums must be remitted quarterly.
3.  Premium amount.  The following provisions govern the premium amount.
A.  Beginning January 1, 2025, the premium amount may not be more than a combined 
rate of 1.0% of wages.
B.  Annually, for the 2028 calendar year and each calendar year thereafter, not later 
than October 1st, the administrator shall set the premium for the coming calendar year 
based on a percentage of employee wages and at the rate necessary to obtain a total 
amount of premium contributions equal to 140% of the benefits paid during the 
previous fiscal year plus an amount equal to 100% of the cost of administration of the 
payment of those benefits during the previous fiscal year, less the amount of net assets 
remaining in the fund as of June 30th of the current calendar year. If, for the 2028 
calendar year or any calendar year thereafter, the premium rate adjustment pursuant to 
this subsection is an increase and results in the difference between the rate of the 
upcoming calendar year and the current calendar year equaling more than 0.1% of 
wages paid, the administrator shall submit a report regarding fund solvency and factors 
contributing to rate setting to the joint standing committee of the Legislature having 
jurisdiction over labor matters.
4.  Self-employed individuals.  The following provisions govern self-employed 
individuals.
A.  A self-employed individual who elects coverage under section 850-G shall pay 50% 
of the premium required for an employee by subsection 3 on that individual's income 
from self-employment.
B.  A self-employed individual who elects coverage under section 850-G shall remit 
the premium amount required by this subsection directly to the administrator, in the 
form and manner required by the commissioner by rule.
5.  Employers.  The following provisions govern employers.
A.  An employer with 15 or more employees may deduct up to 50% of the premium 
required for an employee by subsection 3 from that employee's wages and shall remit 
100% of the premium required by subsection 3 to the fund.
B.  An employer with fewer than 15 employees may deduct up to 50% of the premium 
required for an employee by subsection 3 from that employee's wages and shall remit 
50% of the premium required by subsection 3 to the fund.
6.  Limit on wages to determine premiums. Premiums are required up to the 
contribution and benefit base limit established annually by the federal Social Security 
Administration for purposes of the federal Old-Age, Survivors, and Disability Insurance 
program limits pursuant to 42 United States Code, Section 430.
7.  Use.  The premiums collected under this subchapter must be used exclusively for 
the payment of family leave benefits and medical leave benefits and the costs of 
administration of the program.
8.  Approved private plan.  An employer with an approved private plan under section 
850-H is not required to remit premiums under this section to the fund.
9.  Failure or refusal to make premium contributions.  An employer that fails or 
refuses to make premium contributions as required in this section must be assessed 1.0% 
of its total annual payroll for each year it so failed to comply in addition to any amounts 
previously owed, or fraction thereof, in addition to the total amount of family leave benefits 
and medical leave benefits paid to covered individuals for whom it failed to make premium 
contributions. The rate of assessment imposed by this subsection must be adjusted for the 
2028 calendar year and annually thereafter consistent with subsection 3, paragraph B.
10.  Self-employed individual who elects coverage and fails or refuses to make 
premium contributions.  A self-employed individual who elects coverage under section 
850-G and who fails or refuses to make premium contributions for at least 2 quarters as 
required in this section may be disqualified from family leave benefits and medical leave 
benefits. The self-employed individual's disqualification terminates upon:
A.  The self-employed individual's remittance of all previously owed premium 
contributions as required in this section; and
B.  Following remittance as required by paragraph A, the self-employed individual's 
remittance of premium contributions as required in this section for an additional 
number of quarters equivalent to the number of quarters for which the self-employed 
individual failed or refused to make premium contributions.
§850-G.  Elective coverage
1.  Self-employed individual.  A self-employed individual, including an independent 
contractor, sole proprietor or partner, may elect coverage under this subchapter for an initial 
period of not less than 3 years. The self-employed individual shall file a notice of election 
in writing with the commissioner, as required by the administrator. The election becomes 
effective on the date of filing the notice. As a condition of election, the self-employed 
individual must agree to supply any information concerning wages that the administrator 
considers necessary.
2.  Withdrawal from coverage.  A self-employed individual who has elected coverage 
may withdraw from coverage within 30 days after the end of the 3-year period of coverage, 
or at such other times as the commissioner may prescribe by rule, by filing written notice 
with the commissioner. A withdrawal may not take effect sooner than 30 days after filing 
the notice.
3.  Individual no longer self-employed.  An individual who has elected coverage 
under this section and is no longer a self-employed individual must be excused from that 
individual's obligations under this section, as the administrator prescribes by rule.
§850-H.  Substitution of private plans
1.  Application for approval of private plan.  An employer may apply to the 
administrator for approval to meet its obligations under this subchapter through a private 
plan. In order to be approved, a private plan must confer all of the same rights, protections 
and benefits provided to employees under this subchapter, including, but not limited to:
A.  Allowing family leave and medical leave to be taken for all purposes specified in 
section 850-B, subsections 1 and 2;
B.  Providing family leave benefits and medical leave benefits to a covered individual 
for the maximum number of weeks required in section 850-B, subsection 3 in a benefit 
year;
C.  Providing a wage replacement rate for all family leave benefits and medical leave 
benefits of at least the amount required by section 850-C, subsection 2;
D.  Providing a maximum weekly benefit for all family leave benefits and medical 
leave benefits of at least the amount specified in section 850-C, subsection 3;
E.  Allowing a covered individual to take intermittent leave as authorized by section 
850-B, subsection 4;
F.  Imposing no additional conditions or restrictions on family leave benefits and 
medical leave benefits, or on family leave and medical leave taken in connection with 
those benefits, beyond those explicitly authorized by this subchapter or rules adopted 
pursuant to this subchapter;
G.  Allowing any employee covered under the private plan who is eligible for family 
leave benefits and medical leave benefits under this subchapter to receive benefits and 
take family leave and medical leave under the private plan; and
H.  Providing that the cost to employees covered by the private plan may not be greater 
than the cost charged to employees under section 850-F.
2.  Additional requirements.  In order to be approved as meeting an employer's 
obligations under this subchapter, a private plan must also comply with the following 
provisions:
A.  If the private plan is in the form of self-insurance, the employer must furnish a bond 
to the State with a surety company authorized to transact business in the State, in the 
form, amount and manner required by the administrator;
B.  The plan must provide coverage for all employees of the employer throughout the 
employee's period of employment with that employer; and
C.  If the plan is in the form of a 3rd party that provides for insurance, the forms of the 
policy must be issued by an insurer approved by the State.
3.  Withdrawal of approval.  The administrator shall withdraw approval for a private 
plan granted under subsection 1 when terms or conditions of the plan have been violated. 
Causes for plan termination include, but are not limited to, the following:
A.  Failure to pay family leave benefits or medical leave benefits;
B.  Failure to pay family leave benefits or medical leave benefits timely and in a manner 
consistent with this subchapter;
C.  Failure to maintain an adequate surety bond under subsection 2, paragraph A;
D.  Misuse of private plan money;
E.  Failure to submit reports or comply with other requirements as required by the 
commissioner by rule; or
F.  Failure to comply with this subchapter or the rules adopted pursuant to this 
subchapter.
4.  Rights retained.  An employee covered by a private plan approved under this 
section retains all applicable rights otherwise provided under federal and state law.
5.  Appeal.  A contested determination or denial of family leave benefits or medical 
leave benefits by a private plan is subject to appeal before the administrator and a court of 
competent jurisdiction as provided in section 850-K.
6.  Violations.  Employers offering private plans that violate this section are subject to 
a fine of $100 per violation. The administrator shall transfer any fines collected pursuant 
to this subsection to the fund. The administrator by rule shall establish a process for the 
assessment and appeal of fines under this subsection.
7.  Cost of administration.  The administrator shall annually determine the total 
amount expended by the administrator for costs arising out of the administration of private 
plans. An employer offering a private plan pursuant to this section shall reimburse the 
administrator for the costs arising out of the private plan in the amount, form and manner 
determined by the administrator by rule. The administrator shall transfer payments received 
pursuant to this subsection to the fund.
§850-I.  Notice
1.  Posted notice.  An employer shall post in a conspicuous place on each of its 
premises a workplace notice provided or approved by the administrator providing notice of 
benefits available under this subchapter. The administrator shall issue the workplace notice 
in English, Spanish, French, Somali and Portuguese and any other language that is the 
primary language of at least 2,000 residents of the State. The employer shall post the 
workplace notice in English and each language other than English that is the primary 
language of 3 or more employees of that workplace, if such notice is available from the 
administrator.
2.  Written notice.  An employer shall issue to each employee not more than 30 days 
from the beginning date of the employee's employment the following written information 
provided or approved by the administrator in the employee's primary language:
A.  An explanation of the availability of family leave benefits and medical leave 
benefits provided under this subchapter, including rights to reinstatement of 
employment and continuation of health insurance;
B.  The employee's contribution amount and obligations under this subchapter;
C.  The name and mailing address of the employer;
D.  The identification number assigned to the employer by the administrator;
E.  Instructions on how to file a claim for family leave benefits or medical leave 
benefits;
F.  The mailing address, e-mail address and telephone number of the administrator; and
G.  Any other information deemed necessary by the administrator.
3.  Failure to comply.  An employer that fails to comply with this section commits a 
civil violation for which must be assessed, for a first violation, a civil penalty of $50 per 
employee and $150 per employee for each subsequent violation. The employer has the 
burden of demonstrating compliance with this section.
4.  Notice to employer.  An employee shall give at least 30 days' notice to the employer 
of the anticipated starting date of leave, the anticipated length of leave and the expected 
date of return or shall provide notice as soon as practicable if the delay is due to exigent 
circumstances or for reasons beyond the employee's control. If an employer fails to provide 
notice as required under this section, the employee's obligation to provide notice under this 
subsection is waived.
§850-J.  Prohibited practices
1.  Retaliation prohibited.  It is unlawful for an employer to retaliate by discharging, 
firing, suspending, expelling or disciplining, through the application of attendance policies 
or otherwise, or threatening or in any manner discriminating against an employee for 
exercising any right to which the employee is entitled under this subchapter or with the 
purpose of interfering with the exercise of any right to which the employee is entitled under 
this chapter.
2.  Change in status.  An employer may not make any negative change in the seniority, 
status, employment benefits, pay or other terms or conditions of employment of an 
employee who applies and qualifies for family leave benefits or medical leave benefits 
under this subchapter.
3.  Enforcement; violation.  The administrator shall take enforcement action against 
an employer for a violation of this section.
§850-K.  Appeals
1.  System for appeals.  The administrator shall establish a system for appeals in the 
case of a denial of family leave benefits or medical leave benefits. In establishing the 
system, the administrator may use any procedures or appeals mechanisms established under 
chapter 13.
2.  Judicial review.  Judicial review of any decision with respect to family leave 
benefits or medical leave benefits must be permitted in a court of competent jurisdiction 
after a party aggrieved by the decision has exhausted all administrative remedies 
established by the administrator.
3.  Information related to appeals; confidentiality.  The administrator shall 
implement procedures to ensure confidentiality, to the maximum extent permitted by 
applicable laws, of all information related to any claims filed or appeals made under this 
subchapter.
§850-L.  Disqualification of covered individual
1.  False statement; misrepresentation.  A covered individual is disqualified from 
family leave benefits and medical leave benefits for one year if the individual is determined 
by the administrator to have willfully made a false statement or misrepresentation regarding 
a material fact, or willfully failed to report a material fact, to obtain benefits under this 
subchapter.
2.  Erroneous payment.   If family leave benefits or medical leave benefits are paid 
erroneously or as the result of willful misrepresentation or a claim for family leave benefits 
or medical leave benefits is rejected after benefits are paid, the administrator may seek 
repayment of benefits from the recipient. The administrator shall exercise discretion to 
waive, in whole or in part, the amount of any such payments if the recovery would be 
against equity and good conscience.
§850-M.  Tax treatment
1.  Federal tax.  If the federal Internal Revenue Service determines that family leave 
benefits or medical leave benefits under this subchapter are subject to federal income tax, 
the administrator shall advise an individual filing a new claim for family leave benefits or 
medical leave benefits, at the time the individual files the claim, that:
A.  The federal Internal Revenue Service has determined that benefits are subject to 
federal income tax;
B.  Requirements exist pertaining to estimated tax payments;
C.  The individual may elect to have federal income tax deducted and withheld from 
the individual's payment of benefits in the amount specified in the United States 
Internal Revenue Code of 1986; and
D.  The individual is permitted to change a previously elected withholding status.
2.  Withholding of federal income tax payments.  If an individual elects to have 
federal income tax payments withheld from the individual's family leave benefits or 
medical leave benefits payments, the administrator shall deduct and withhold the amount 
specified in the United States Internal Revenue Code of 1986 in a manner consistent with 
the requirements in Title 36. Amounts deducted and withheld from benefits must remain 
in the fund until transferred to the federal taxing authority as a payment of income tax.
3.  Conformity to Internal Revenue Service procedures.  The administrator shall 
follow all procedures specified by the federal Internal Revenue Service pertaining to the 
deducting and withholding of income tax.
4.  Benefits not subject to state income tax.  Family leave benefits and medical leave 
benefits received pursuant to this subchapter are not subject to state income tax.
5.  Rules.  The administrator, in consultation with the Department of Administrative 
and Financial Services, Bureau of Revenue Services, shall adopt rules regarding tax 
treatment and related procedures regarding family leave benefits and medical leave benefits 
and the sharing of necessary information between the administrator and the Bureau of 
Revenue Services.
§850-N.  Data collection and technology
The administrator shall use state data collection procedures and technology to the 
extent possible to integrate the program with existing state policies.
§850-O.  Paid Family and Medical Leave Benefits Authority 
The Paid Family and Medical Leave Benefits Authority, established in Title 5, section 
12004-I, subsection 54-F, shall advise the administrator on the implementation and 
administration of the program in accordance with this subchapter. 
1. Membership; appointments.  The authority consists of the following 13 members: 
A. Eleven members appointed by the Governor: 
(1) One member with expertise in issues affecting labor and independent 
contractors; 
(2) One employer with more than 50 employees; 
(3) One member with expertise in issues related to paid family leave benefits and 
paid medical leave benefits; 
(4) One employer with 50 or fewer employees; 
(5) One member who is self-employed;
(6) One member who is an employer in the hospitality industry; 
(7) One member with expertise in issues affecting maternity and postpartum care; 
(8) One member with expertise in agriculture, or a seasonal workforce, or a 
heritage industry;
(9) One member with expertise in issues affecting elder care;
(10) One member who is an actuary with expertise in paid family leave benefits 
and paid medical leave benefits; and 
(11) One member who is a representative of insurance carriers in the State; 
B. The commissioner or the commissioner's designee; and
C. The controller or the controller's designee.
2.  Terms.  Members of the authority serve 3-year terms.  When a vacancy occurs, the 
Governor shall fill the vacancy by appointing a member from the same category as the 
member who vacated the authority, and that new member continues to serve for the 
remainder of the term.
3.  Chair; election of board officers.  The members of the authority shall annually 
elect one of its members as chair and one of its members as vice-chair.  The chair is 
responsible for scheduling at least 4 authority meetings a year and for preparing the agenda 
for each meeting.
4.  Quorum.  A majority of the authority members constitutes a quorum.
5.  Staffing of authority.  The administrator shall provide administrative and staff 
support to the authority.  Administrator staff shall attend all meetings of the authority.
6.  Meetings.  The authority shall meet at least quarterly each year.  Additional 
meetings may be held as necessary to conduct the business of the authority.  At least once 
per year, the authority and the administrator shall convene a meeting to solicit public 
comment on any issues related to paid family leave benefits and paid medical leave benefits 
and on the experiences of employers and employees with the program. 
7. Duties. The authority: 
A. Shall monitor the program on an ongoing basis to ensure the program's efficacy and 
performance, including its fiscal accountability and its financial solvency;  
B. Shall propose changes to or advise the administrator on the laws, rules, administrator 
policies and other significant issues related to paid family leave benefits and paid 
medical leave benefits;
C.  Shall provide policy oversight and recommendations on the administration and 
structure of the program;
D.  Shall review and make recommendations to the commissioner related to the 
relationship between the administrator and the employers and employees participating 
in the program and any education and outreach needs of the program; 
E. Shall solicit and consider public comment on the administration of the program; and
F.  May introduce legislation to the Legislature.
§850-P.  Implementation
Contributions must begin January 1, 2025 to provide funds for the fund. The 
administrator shall begin processing claims beginning January 1, 2026, except that, by 
February 1, 2026, the authority shall conduct an actuarial study to ensure the solvency of 
the fund at a level of at least 140% of the benefits paid in the preceding year. If additional 
contributions are required based on the results of the actuarial study, the authority, through 
a majority vote, may require a one-time suspension of claims payments of no longer than 
months.
The administrator shall establish reasonable procedures and forms for filing claims for 
benefits under this subchapter and shall specify what supporting documentation is 
necessary to support a claim for benefits, including documentation required from a health 
care provider for proof of a serious health condition.
§850-Q.  Rulemaking
The administrator shall adopt rules as necessary to implement this subchapter. Initial 
rules necessary for implementation of this subchapter must be adopted by the administrator 
by January 1, 2025. Rules adopted pursuant to this subchapter are routine technical rules 
as defined in Title 5, chapter 375, subchapter 2-A.
§850-R.  Effect of existing employer benefits for family and medical leave
This subchapter may not be construed to prohibit an employee entitled to receive 
benefits for family leave or medical leave under a collective bargaining agreement or 
employer policy from also receiving benefits under this subchapter as long as the employee 
is otherwise eligible for benefits under this subchapter.
Sec. 6.  Staggered terms.  Notwithstanding the Maine Revised Statutes, Title 26, 
section 850-O, subsection 2, of the initial members appointed to the Paid Family and 
Medical Leave Benefits Authority pursuant to Title 26, section 850-O, subsection 1, 
paragraph A, the members appointed pursuant to subparagraphs (1), (3) and (5) must be 
appointed to a term of one year; the members appointed pursuant to subparagraphs (2), (7), 
(8) and (11) must be appointed to a term of 2 years; and the members appointed pursuant 
to subparagraphs (4), (6), (9) and (10) must be appointed to a term of 3 years.
SUMMARY
This bill implements a paid family and medical leave benefits program based on the 
recommendations of the Commission to Develop a Paid Family and Medical Leave 
Benefits Program established by the 130th Legislature. The program provides up to 12 
weeks of family leave and up to 12 weeks of medical leave to eligible covered individuals. 
No more than 16 weeks of family leave and medical leave in the aggregate may be taken 
in a 12-month period. An individual is eligible for leave under the program after earning at 
least 6 times the state average weekly wage in the preceding 4 calendar quarters prior to 
submitting an application or if the individual is self-employed and has elected to be part of 
the program.
The maximum weekly benefit amount is capped at 120% of the state average weekly 
wage. The weekly benefit amount is 90% of the covered individual's average weekly wage.
Covered individuals are required to file claims for benefits in accordance with rules 
adopted by the department administering the program and to provide certification that they 
qualify for family leave or medical leave.
The bill establishes the Paid Family and Medical Leave Insurance Fund to support the 
program. The funds for administrative costs and payment of benefits come from payroll 
contributions of no more than 1% of wages shared by employers and employees, except 
that employers with fewer than 15 employees are not required to make employer 
contributions to the program. The bill also authorizes employers to provide these benefits 
through a private plan as long as the benefits for family and medical leave provided to their 
employees are the same as provided in the program. 
The bill establishes the Paid Family and Medical Leave Benefits Authority to advise 
the administrator on the implementation and administration of the program.
The bill requires payroll contributions to begin January 1, 2025 and benefit claims to 
be processed beginning January 1, 2026.
The bill authorizes the Department of Economic and Community Development to 
conduct outreach with businesses about the paid family and medical leave benefits 
program.
The bill requires the program to be reviewed under the State Government Evaluation 
Act in 2029.