The launch of Maine’s Paid Family and Medical Leave (PFML) benefits is less than a year away, marking an important milestone for employers with employees in the state. Understanding the key features of Maine’s PFML, upcoming deadlines, and how it compares to other states’ laws is essential for ensuring compliance and smooth implementation. This overview provides clarity on what to expect and how to navigate the new requirements.

Overview of Maine PFML

Enacted in 2023, Maine’s PFML program aims to provide paid leave to employees for various family and medical reasons, including:

• The employee’s own medical
• Bonding with a new child
• Caring for a family member (including servicemember) with a serious health condition
• Military qualifying exigency

Additionally, the Maine PFML program covers a few less-commonly-covered leave reasons, such as safe leave, organ donation, or bereavement (in limited circumstances).

Much of the program is structured similarly to other states with PFML laws. However, the specific details and thresholds vary, making it important for employers to review Maine’s program carefully to understand how it differs from other jurisdictions.

• Contribution rate: 1% of wages up to the Social Security taxable wage limit, with half paid by the employer, assuming 15 or more employees in the state of Maine.
  • Note: The contribution rate may not exceed the current regulatory cap of 1% at any time. It has been set at this rate for the initial years and will be adjusted annually beginning in 2028.
• Benefit amount: Based on, and capped at, the state average weekly wage (SAWW), the benefit will be calculated as 90% of the employee’s average wages up to 50% of SAWW, and 66% of wages that exceed 50% of SAWW.
  • Note: the SAWW is set at $1,198.84 for the period July 1, 2025, through June 30, 2026.
• Entitlement: 12 total weeks of leave per year, which can be 12 weeks of medical leave, 12 weeks of family leave, or a combination totaling 12 weeks.
• Eligibility: Employees are eligible when they are employed in Maine and have earned at least six times the SAWW in wages subject to premiums during the base year.
• Job protection: Begins after 120 days of employment, requiring that an employee returning from leave must be reinstated to the same, or an equivalent position.
• Types of plans: Employers can participate in the state program, or they may opt for a private plan—either self-insured or fully insured—that provides benefits substantially equivalent to the state plan.

Undue hardship

A notable aspect of Maine’s PFML is the “undue hardship” provision. Within 10 days of being notified of a claim, an employer may indicate an undue hardship if the leave will have a significant impact on operations or significant expense. An employer can essentially waive the 10-day review period by agreeing to the leave schedule. But note that this provision seems to involve the employer in the claims administration process, even for employers who participate in the state plan.

The Maine Department of Labor has included some information about this process in the Rules, but this potentially unique step in the process may need additional clarifications before May 2026.

On important note to be aware of is it appears that when the leave is for employee’s own medical condition, the healthcare provider is given significant deference in determining the leave schedule and the employer will be limited or prevented from claiming undue hardship.

State program vs. private plan

Employers participating in the state program are required to submit quarterly wage reports and premium contributions to the state. Employees will apply for leave through the state program, and those claims will be administer by Aflac, which Maine has selected as the administrator for the state PFML program.

Employers seeking to implement a private plan must apply to the Maine Department of Labor, and have the option to utilize either a self-insured private plan or fully insured private plan. Either plan type must provide rights, protections, and benefits substantially equivalent to the state program.

If approved for a private plan, the employer is exempt from submitting premiums to the state as of the first date of the quarter in which the private plan is approved, or the first day of the following quarter if the application is submitted in the last 30 days of the quarter. Employers with an approved private plan are still required to submit quarterly wage reports and annual claims data to the state.

Key dates

As the implementation of Maine’s PFML program approaches, employers should be aware of the following key dates:

• January 1, 2025: Employers began collecting premium contributions from employees to fund the state program.
• April 1, 2025: Private plan applications opened.
• April 30, 2025: First quarterly wage report and premium payment due.
• July 31, 2025: Second quarterly report and premium payment due if the employer has not been approved for substitution of a private plan.

October 31, 2025: Third quarterly report and premium payment due if the employer has not been approved for substitution of a private plan.

• January 31, 2026:  Fourth quarterly report and premium payment due if the employer has not been approved for substitution of a private plan.
• May 1, 2026: Benefits officially begin—employees can start taking paid leave.

Next steps for employers

To ensure compliance with Maine’s PFML , employers should consider the following steps:

1. Review existing policies, notices, and posters: Incorporate Maine PFML information into existing policies, notices, and posters.
2. Coordinate with stakeholders: Ensure that payroll and tax teams are withholding the correct premiums and are aware of the applicable benefit amounts for accurate calculations. Additionally, HR, IT, Legal, and other relevant departments should be informed of the program’s requirements and implications to facilitate smooth implementation and compliance.
3. Educate employees: Provide all required information to employees, and consider options to inform employees about their rights and benefits under PFML programs.
4. Monitor changes: Stay informed about amendments to PFML laws in all states to ensure compliance across jurisdictions.

How can Marsh McLennan Agency’s Absence, Disability, & Life Practice help?

For additional guidance on Maine’s PFML or other leave programs, contact Marsh McLennan Agency’s Absence, Disability, & Life Practice. With over 20 years of experience, we help clients understand, implement, and manage leave and disability programs—reducing compliance risks and controlling costs. Let us be your trusted partner in prioritizing what matters most: your people.