An Act to Establish
Maine Legislature, Session 132, LD 1587
Committee Amendment CA_A_H808 (House)
Amends: 26 MRSA §54

COMMITTEE AMENDMENT "P^ " to H,P. 1045, L.D. 1587, "An Act to Establish
Greater Alignment of Penalties for Certain Labor Law Violations"
Amend the bill by striking out the title and substituting the following:
'An Act to Clarify the Bureau of Labor Standards' Investigatory and Enforcement
Procedures'
Amend the bill by striking out everything after the enacting clause and inserting the
following:
'See. 1. 26 MRSA §54 is enacted to read:
§54. Investieation; penalties
1. Investieation. Whenever the director believes a person or employer has violated
any provision of chapter 7 or 15. the director may conduct an investigation. During the
mvestigation of a person or employer, the director may:
A, Examine or cause to be examined for that purpose any books, records, papers and
memoranda of any person_Qr emRlover of whatever nature relevant to the alleged
yiolation;
B. Issue a subpoena pursuant to subsection 2 or otherwise require the attendance of
the person or employer. or of any other person having knowledge of the subject of the
investigation, take testimony, administer oaths or take acknowledgement in respect of
any book. record, paper or memorandum and may require proof material for that
person's or employer's information. Such testimony, administration of oaths or
acknowledgement of any book, record, paper or memorandum must be taken in the
0 county where the person or employer resides or has a place of business. or in Kennebec
County if the person or emplQYerls a nonresident or has no place of business within
the State: and
C. Requu'e production of any record required by law to be kept by the person or
employer pursuant to any provision of chapter 7 or 15.
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COMMITTEE AMENDMENT " ZL" I
COMMITTEE AMENDMENT " l^" to H.P,1045, L,D.1587
2. Issuance of subpoenas. Subpoenasissued forthepurposes of conducting an
investigation pursuant to subsection 1 must be issued pursuant to Title 5. section 9060.
Service of any notice or subooena may be made by:
A. Delivering a duly executed copy of the subpoena to the person or emolover to_be
served or to a partner or to any officeror agent authorizedby appointment or by law to
receive service of process on behalf of that person or employen
B. Delivermg a duly executed coov of the subpoena to the principal place of business
m this State of the person or employer to be served; or
C. Mailing by registered or certified mail a duly executed copy of the subpoena
addressed to the person or employer to be served at the ormcipal place of business m
this State of the person or employer to be served or. if that person or employer does not
have a place of business in this State, to the person's or employer's principal ofRce or
place of business or publicly identified service address,
3. Penalties for violations. If the director determines a person or employer has
viola.ted_anv_Brov_ision_of chaptet? otJ. 5, the director ma¥ issue a notice of violation and:
A. Order the payment of penalties and other remedies consistent with section 53 and
anv otheLpenalty or enforcementprovision in chapter 7 ot_15. Once a penalty or other
ordered remedy is final and all administrative and legal appeal rights have been
exhausted, the person or employer subject to the penalty or ordered remedy pursuant
to this subsection shall make payment within 30 calendar days. Failure to make a timely
payment is subject to an additional civil penalty of not more than $1.000 for each day
that the person or employer fails to make payment; or
B. Order the correction of ongoing violations. Any person or employer who fails to
correct a violation for which a notice of violation has been issued within the permitted
p_eriod for its correction is subject to an additional civil penalty of not more than $1.000
for each day during which the violation is not corrected. The permitted period for
correction may not begin to inn until the date on which all administrative and legal
appeal rights have been exhausted in the case of any appeal proceeding initiated by the
person or employer in good faith and not solely for delay or avoidance of penalties.
A person or employer who is ordered to pay wages, liquidated damages or interest to an
employee pursuant to this subsection or the provisions of_chaRter7_or 15_shall_certify that
Bavment was made withm 7 calendar days from the date on which all administrative and
legal appeal rights have been exhausted in the case of any appeal oroceedine initiated by
the person or employer in good faith and .not solelv_for_delav_Qr avoidance of penalties,
5 Such certification must demonstrate to the satisfaction of the director that payment was
made to any employee's last known address or attest to the same under penalty of perjury.
4. Failure to Raysjioticeof levy. If a person or emnloyer fails to pay any part of the
wages, liquidated damages, interest or penalties due to an employee under this section or
9 chapter 7 or 15. the director may notify by mail a 3rd party who has possession or control
of m'opertv in which the delinquent person or emoloyer may have an interest or who may
owe a debt to the delinquent person or employer, other than earnings.
A. A notice of levy under this subsection may be given any time after the amount due
under this section becomes delinquent. The notice of levy must state the aggreeate
amount of contributions, penalties, interest or other amounts due and any additional
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COMMITTEE AMENDMENT " b, " to H,P, 1045, L.D, 1587
amount that will accrue by operation of law in a period not to exceed the comoutation
ending date of the month in which the notice of levYis^ivenand, in fhecase ofa_credit.
bank or savings account,or depQsit.the^^^^n^^ pfJevY is effective_onlv u_B_to that
amount.
B. The delinquent person's or employer's Dropertv subject to levy includes:
U) A crediLbank or savings account or depositthat is subject to execution pursuant
to Title 14. section 4751: or
(2) Any other interest or personal propertv that is not exempt from attachment or
execution pursuant to Title 14. chapter 507. subchapter 2. article 7.
C. A notice of levy is effective:
d) At the time of delivery against all propertv, rights to orooertv. credits and debts
involving the delinquent person or employer that are not, as .ofLthe date of the
notice, subject to a preexisting lien. attachment, garnishment or execution issued
through a judicial process; and
(2} Asainst all property, rights to oropertv, credits and debts involvmg the
delinquent person or employer that come into the possession or control of the
person or_emploveLserved with the notice.
D. Anotice of levy sent under this subsection that attempts to prohibit the transfer or
disposition of any property possessed or controlled by a bank is effective if it is mailed
to the^princioaLor any branch office of the bank, including any office of the bank at
which the deposit is carried or the credit or prooertv is held,
E, Aperson who has received a notice of levy under this subsection and who acts in
accordance with the terms of the notice^^^ o^^^^^^ is discharged
from any obligation or liability to the delinquent person or employer with respect to
the affected property, rights to, Rropeitv, credits and debts of the person affected by
compliance with the notice of levy,
F. A person who has received a notice of levy under this subsection and who transfers
or disposes of any property or debt in a manner that violates this section is liable to the
director for the amount of the indebtedness of the delinquent person or employer with
respect to whose obligation or liability the notice was given to the extent of the value
of that property or debt.
5. Workplace posting. A copy or copies of any notice of violation issued under this
section or chapter 7 or 15 must be prominently posted in a conspicuous location in the
workolace that is accessible to emolovees. If no such location exists, a copy or copies of
the notice of violation must be delivered to each employee in a reasonable manner.
6. Employee notification. If a notice of violation issued under this section or chapter
7 or 15 covers a defined time period, notice of violation must be provided to all employees
employed during that time period. Mail. e-mail and text messages constihite reasonable
manners in which to notify employees, as long as the mail. e-mail or text message is in the
same language in which the employer typically communicates to the employees receivmg
the notice of violation,'
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT "A-" to H.P, 1045, L.D, 1587
SUMMARY
This amendment replaces the bill and changes the title. The amendment provides the
Director of Labor Standards within the Department of Labor the authority to conduct an
investigation when the director believes a person or employer has violated any provision
of the Maine Revised Statutes, Title 26, chapter 7 or 15. The amendment also provides the
penalties the director may order if it is determined that a violation has occurred and
authorizes the du-ector to issue a notice of levy if the person or employer charged with a
violation fails to pay. The amendment also requires persons or employers to prominently
post in the workplace the notices of violation issued for a violation and requires the person
or employer to notify employees if a notice of violation covers a defined period of time,
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Approved: 02/09/26 t-Kt-
LD 1587 LR 1551(02)
An Act to Establish Greater Alignment of Penalties for Certain Labor Law Violations
Fiscal Note for Bill as Amended by Committee Amendment '/^ Q\^
Committee: Labor
Fiscal Note Required: Yes
Fiscal Note
Minor cost increase - General Fund
Minor revenue increase - General Fund
Correctional and Judicial Impact Statements
This bill may increase the number of civil suits filed in the court system. The additional workload associated with the
f mmimal number of new cases filed in the court system does not require additional funding at this time. The collection
of additional filing fees will increase General Fund revenue by minor amounts.
Fiscal Detail and Notes
Any additional costs to the Department of Labor to implement the provisions of this bill are expected to be minor and
can be absorbed within existing budgeted resources. Any increase in revenue to the Department of Labor from the
provisions of this bill is expected to be minor.
LR15 51 (02) - Fiscal Note - Page 1 of 1