Key Changes to Maine’s Paid Family Medical Leave Program in New Proposed Rules

By Carolyn Liegner and Pawel Binczyk

The Maine Department of Labor has proposed several important changes to the Paid Family Medical Leave (PFML) program that could significantly impact employers and employees alike. Below are the key updates:

1. Earlier Eligibility for Substitute Coverage: Under the amended proposed rules, employers now have an earlier opportunity to apply for substitute coverage, with the earliest application date moving up from January 21, 2026, to April 1, 2025. Additionally, once an employer’s substitution is approved, the exemption from remittance of premiums will typically begin on the first day of the quarter in which the substitution was approved. This could provide substantial cost savings for employers, provided that approvals are obtained promptly.
2. Change in Employee Count Determination for Employer Obligations:The proposed process for determining whether an employer meets the threshold of 15 employees has changed. Previously, the determination was made based on the number of employees on October 1 each year. The amended proposed rule now considers whether an employer has had 15 employees for 20 or more weeks in the 12 months preceding September 30, 2024. This change is particularly significant for seasonal employers, who may now qualify as large employers based on their peak employment periods.
3. Leave Reduction Based on Previous FMLA Leave: The new proposed rules specify that any leave taken under the federal Family and Medical Leave Act (FMLA) or Maine FMLA within the 12 months preceding a PFML claim will reduce the available PFML leave. Employers should track leave usage carefully to avoid over-granting leave and ensure compliance with this new provision.
4. Elimination of “Affinity Relationship”: The term “affinity relationship” has been removed from the proposed rules, simplifying the definitions around personal relationships. The only recognized term now is “significant family bond,” which emphasizes a strong, family-like connection without requiring a legal or biological relationship.
5. Clarification of “Significant Family Bond”: The proposed rules now provide specific, non-exclusive factors for determining a “significant family bond.” These factors are similar to those used in establishing a common law marriage, such as shared financial responsibility and cohabitation. This clarification is intended to provide more objective criteria for determining eligibility for family leave.

The proposed rules remain in public comment until September 30, 2023, with a public hearing on the rules scheduled for September 17, 2024, at 9:00 a.m., at the Maine Department of Labor, Frances Perkins Room, 45 Commerce Dr., Augusta, ME 04330. While further rulemaking is likely as the program evolves, this is the last piece of rulemaking that employers should expect before contributions become due on January 1, 2025. Although the final rules may vary somewhat from what has been proposed, these proposals give a strong indication of the Department’s intent and are likely close to where the Department’s rules will end up.

Next Steps for Employers: Employers should review their current leave policies and make necessary adjustments to comply with these proposed rules. Special attention should be given to tracking leave usage under federal and state FMLA laws, as well as reassessing the potential impact of the new employee count determination process, especially for those in seasonal industries.

For further guidance or assistance in navigating these changes, please contact the Labor and Employment Team at Bernstein Shur.