AUGUSTA, Maine — Maine is on track for a paid family and medical leave program — that much is written in law, after the state legislature passed a bill doing as much in 2023.
But major questions remain as to what exact language will be in the program once it begins collecting funds in January.
Luke Monahan is the director of the program. On Monday, he led his team in a listening session where, for the only time in person, employers and employees alike could make comment about what they would like to see, or avoid, once it gets underway.
"This is one of the broadest-focusing laws Maine has passed in a long time, covering, ultimately over 600,000 workers and over 60,000 businesses, probably," Monahan said during an interview shortly after he adjourned the public comment hearing. "So, it's very important during this rulemaking phase that we hear from as many voices as possible to make sure this is a program that works for Maine."
Monahan said as many as 60 people filled a conference room for the hearing, while as many as 20 spoke at the podium.
Patrick Woodcock was among the speakers. As president and CEO of the Maine State Chamber of Commerce, he said it is time for Maine to have a paid leave program.
He's worried, though, what this would mean for seasonal workers who work for a limited time, and voiced concerns that businesses would have to start paying into the program come January, whether or not they end up being enrolled, or successfully opting out and running their own program when benefits go live in May of 2026.
"This is gonna have implications for not only the businesses that do not have paid family medical leave system in place, but also the businesses that do," Woodcock said. "And that’s different than the other states. The other states have said, 'If you want to exempt yourself from this program, just declare it to the state.' We're recommending that to the department of labor."
Under the current proposal, the program would begin drawing payroll contributions in January of 2025, in order to raise enough capital to fund it and begin issuing benefits in May of 2026, with each business's payroll being taxed one percent of its total wages.
According to the department's website, for employers with fewer than 15 employees, that company may deduct the entire one percent from employee wages. For companies with at least 15 employees, that company may deduct up to 0.5 percent of its contribution from employee wages. In other words, workers and employers would split the cost. It's a point Woodcock made in our Monday interview, and other leaders of large business groups have expressed the same to us in previous interviews.
However, the AFL-CIO pointed out in a May interview that this is not a mandatory split, but instead a point that can be freely negotiated between parties.
Indeed, on that same webpage, the DOL wrote, "an employer may pay the employee's share of 0.5 percent but is not required to."
However the contributions get divided, Mollie Barnathan believes all Mainers are better off with paid family and medical leave. She is a Portland-based doula who founded North Light Newborns. She testified in support of the paid leave bill as it worked through the Legislature in 2023. With one other person on staff and an extremely moldable schedule, Barnathan said the employer side of the program would not impact her much at all. However, she said, the new parents she regularly sees would benefit greatly at home, with more time together as a new family, less stress over finances, and knowledge their employer cares. She added that it makes business sense as well.
"When people have this time and this support, we see higher rates of employee retention," she said. "We see higher rates of productivity."
Mainers can continue to submit comment to the department of labor here, or by mail at 50 State House Station, Augusta, Maine 04333-0050.