An Act to Amend the Paid Family and Medical Leave Benefits
Maine Legislature, Session 132, LD 1712
Committee: Labor
Sponsors: ROBERTS, BALDACCI
Amends: 26 MRSA §850-B, 26 MRSA §850-C, 26 MRSA §850-D, 26 MRSA §850-F, 26 MRSA §850-M, 36 MRSA §5122, 36 MRSA §5255-D

Legislative Document
No. 1712
H.P. 1147
House of Representatives, April 17, 2025
An Act to Amend the Paid Family and Medical Leave Benefits 
Program to Balance Support of Businesses and Employees
Reference to the Committee on Labor suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative ROBERTS of South Berwick.
Cosponsored by Senator BALDACCI of Penobscot and
Representatives: ARATA of New Gloucester, COLLAMORE of Pittsfield, CROCKETT of 
Portland, HEPLER of Woolwich, MASTRACCIO of Sanford, O'HALLORAN of Brewer, 
STOVER of Boothbay, Senator: BRADSTREET of Kennebec.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  26 MRSA §850-B, sub-§7, as enacted by PL 2023, c. 412, Pt. AAA, §7, is 
amended to read:
7.  Notice to employer.  Absent an emergency, illness or other sudden necessity for 
taking leave, an employee shall give reasonable notice to the employee's supervisor of the 
employee's intent to use leave under this subchapter. Use of such leave must be scheduled 
to prevent undue hardship on the employer as reasonably determined by the employer. If 
an employer fails to provide notice as required under section 850‑I, the employee's 
obligation to provide notice under this subsection is waived.  For purposes of this 
subsection, the conditions that constitute undue hardship include, but are not limited to:
A.  The employer employs fewer than 15 employees;
B.  When, during the period between 3 days before Memorial Day until Labor Day, the 
employer is experiencing a labor shortage;
C.  The employer generates at least 60% of the employer's annual revenue during a 5-
month period, and it is during that 5-month period; or
D.  When more than 25% of the employer's employees are already on leave or have 
requested and been approved for leave, including, but not limited to, vacation or 
medical or family leave.
An employer may determine additional conditions that constitute undue hardship based on 
an individualized assessment of the effect of the leave request on that employer's 
operations.
A decision of an employer to deny the use of leave based on undue hardship is not 
reviewable by the department or subject to appeal pursuant to section 850-K.  This 
subsection may not be construed to prevent an employer from granting leave despite a 
determination of undue hardship by the employer.
Sec. 2.  26 MRSA §850-B, sub-§10, ¶B, as enacted by PL 2023, c. 412, Pt. AAA, 
§7, is amended to read:
B.  In any way curtail the rights, privileges or remedies of any employee under any 
collective bargaining agreement or employment contract.  This paragraph may not be 
construed to prohibit an employer from deducting a portion of the premium as required 
pursuant to section 850-F, subsection 5;
Sec. 3.  26 MRSA §850-B, sub-§10, ¶D, as enacted by PL 2023, c. 412, Pt. AAA, 
§7, is amended to read:
D.  Require a public an employer, as defined in section 962, subsection 7, or employee 
of a public an employer that is a party to a collective bargaining agreement in existence 
on the effective date of this subchapter October 25, 2023 to apply any of the rights and 
responsibilities under this subchapter until the existing collective bargaining agreement 
expires.
Sec. 4.  26 MRSA §850-C, sub-§2, as enacted by PL 2023, c. 412, Pt. AAA, §7, is 
amended to read:
2.  Determination of weekly benefit amount.  The weekly benefit amount paid to 
employees and an employee or self-employed individuals individual on family leave or 
medical leave is calculated as follows: 65% of that employee's or self-employed 
individual's average weekly wage.
A.  The portion of the covered individual's average weekly wage that is equal to or less 
than 50% of the state average weekly wage must be replaced at a rate of 90%; and
B.  The portion of the covered individual’s average weekly wage that is more than 50% 
of the state average weekly wage must be replaced at a rate of 66% up to the maximum 
weekly benefit.
Sec. 5.  26 MRSA §850-D, sub-§2, as enacted by PL 2023, c. 412, Pt. AAA, §7, is 
repealed and the following enacted in its place:
2.  Filing of application.  The filing of an application for family leave and medical 
leave benefits is governed by this subsection.
A.  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.
B.  An individual may file an application for family leave benefits no more than 15 
days after the start date of family leave.
C.  An individual may file an application for medical leave benefits no more than 30 
days after the start date of medical leave.  The administrator shall waive the 30-day 
filing deadline for good cause.
The administrator shall institute forms and procedures that are not unduly burdensome to 
an individual claiming benefits.
Sec. 6.  26 MRSA §850-F, sub-§5, as enacted by PL 2023, c. 412, Pt. AAA, §7, is 
repealed.
Sec. 7.  26 MRSA §850-F, sub-§5-A is enacted to read:
5-A.  Payment of share of premium by employees.  Payment of an employee's share 
of the premium is governed by this subsection.
A.  An employer shall deduct 50% of the premium amount required by subsection 3 
from an employee's wages and shall remit 100% of the combined premium contribution 
required in subsection 3 to the fund.
B.  Notwithstanding paragraph A, an employer may pay up to 100% of the employee's 
premium amount required by subsection 3 in addition to the amount required to be paid 
by the employer, as long as 100% of the amount of the premium required by subsection 
is remitted.
C.  Notwithstanding any provision of law to the contrary, an employer subject to 
collective bargaining is not required to bargain for the deduction of the premium from 
an employee's wages as permitted by this subsection.
Sec. 8.  26 MRSA §850-F, sub-§9, as enacted by PL 2023, c. 412, Pt. AAA, §7, is 
amended to read:
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 a fine, 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 
annually consistent with subsection 3, paragraph B.  The following provisions govern fines 
imposed pursuant to this subsection.
A.  The maximum amount of the fine is $50 for each employee for whom the employer 
failed or refused to make premium contributions.
B.  The department shall determine the amount of the fine assessed pursuant to 
paragraph A.
C.  The department may waive the fine when it determines that equity and good 
conscience require the waiver.
D.  If the department assesses a fine for underpayment of the premium contributions, 
the department shall inform the employer of the amount of the underpayment.
E.  An employer notified pursuant to paragraph D may appeal pursuant to section 
850-K.
F.  An employer found in violation of this subsection that fails to withhold from an 
employee the amount allowed pursuant to subsection 5 may deduct the appropriate 
amounts from the employee retroactively.
The provisions of this subsection do not apply until January 1, 2026 unless the employer 
willfully fails or refuses to make the premium contributions required in this section.
Sec. 9.  26 MRSA §850-M, sub-§1-A is enacted to read:
1-A.  State tax.  An individual filing a new claim for family leave benefits or medical 
leave benefits under this subchapter may elect to have the administrator deduct and 
withhold state income tax from the individual’s payment of benefits at the rate of 5%. The 
department shall advise an individual filing a new claim, at the time the individual files the 
claim, that:
A.  The benefits are subject to state income tax;
B.  Requirements exist pertaining to estimated tax payments;
C.  The individual may elect to have state income tax deducted and withheld from the 
individual's payment of benefits at the rate of 5%; and
D.  The individual is permitted to change a previously elected withholding status.
Sec. 10.  36 MRSA §5122, sub-§1, ¶QQ is enacted to read:
QQ.  For each taxable year beginning on or after January 1, 2026, an amount equal to 
the amount of family leave benefits or medical leave benefits paid pursuant to Title 26, 
section 850-C, to the extent those benefits are not included in the taxpayer’s federal 
adjusted gross income.
Sec. 11.  36 MRSA §5122, sub-§2, ¶AAA is enacted to read:
AAA.  For each taxable year beginning on or after January 1, 2026, an amount equal 
to the amount of any family leave benefits or medical leave benefits that were repaid 
by the taxpayer pursuant to Title 26, section 850-L, subsection 2 that have been 
previously taxed under this Part.
Sec. 12.  36 MRSA §5255-D is enacted to read:
§5255-D.  Withholding on paid family and medical leave benefits
When an individual receiving family leave benefits or medical leave benefits under the 
paid family and medical leave benefits program established in Title 26, section 850-B 
makes an election pursuant to Title 26, section 850-M, subsection 1-A, the administrator 
of the paid family and medical leave benefits program shall deduct and withhold state 
income tax at the rate of 5% from the family leave benefits or medical leave benefits paid 
to the individual pursuant to Title 26, sections 850-B and 850-C.
SUMMARY
This bill makes the following changes to the paid family and medical leave benefits 
program.
1.  It provides examples of what type of conditions constitute undue hardship for an 
employer and allows an employer to determine other conditions, based on that employer's 
specific business, that constitute undue hardship.  It also provides that the decision of an 
employer to deny the use of leave based on undue hardship is not reviewable by the 
Department of Labor.
2. It requires an employer to deduct from an employee's wages 50% of the payroll 
premium, instead of allowing an employer to choose to deduct up to 50% of the payroll 
premium, but allows an employer to pay any amount of the employee's share of the payroll 
premium.  It specifies that the existence of a collective bargaining agreement does not 
prevent an employer from deducting an employee's share of the premium imposed to 
finance the payment of benefits under the program nor does it require the employer to 
bargain before making that deduction.
3.  It extends to all employers subject to a collective bargaining agreement the 
exemption for public employers or employees of a public employer subject to a collective 
bargaining agreement from participating in the program until the expiration of the 
collective bargaining agreement in effect on October 25, 2023.
4.  It establishes a benefit amount, regardless of income, of 65% of an employee's 
average weekly wage.
5.  It requires an employee to file an application for family leave benefits no more than 
days after the start of family leave and to file an application for medical leave benefits 
no more than 30 days after the start of the medical leave.
6.  It changes the fine imposed for failure or refusal by an employer to make premium 
contributions to a maximum of $50 per employee.  The fine is waivable by the department 
if the department determines it is in the interest of equity and good conscience.  It requires 
the department to notify an employer and allows an employer to appeal the decision.  It 
allows an employer who is found to have failed or refused to make premium contributions 
to retroactively deduct from an employee's wages that employee's share of the premium.  
Finally, it stays the imposition of any fines until January 1, 2026 unless the employer 
willfully fails or refuses to make the premium contributions.
7.  It provides that benefits paid from the program are subject to state income tax to the 
extent those benefits are not included in the taxpayer's federal adjusted gross income. It 
also provides that a taxpayer's federal adjusted gross income may be reduced by the amount 
subject to repayment that has been previously taxed by the State. It also allows individuals 
filing a new claim for family leave benefits or medical leave benefits to elect to have the 
administrator of the program deduct and withhold state income tax from the individual's 
payment of benefits at the rate of 5% and requires the administrator of the program to 
deduct and withhold state income tax. It also requires the department to advise individuals 
filing a new claim for benefits that the benefits are subject to state income tax.