Maine Paid Family and Medical Leave rulemaking update

This morning the Maine Department of Labor released amended Paid Family and Medical Leave rules, including significant changes to the private plan exemption process.

Under the amended proposed rule, Maine employers may submit applications for substitution beginning April 1, 2025. Previously, the exemption process was set to begin April 1, 2026.

An employer will be exempted from premium contributions beginning the first day of the quarter in which the application is approved. The exemption will be approved if the employer enters into a ‘contractual obligation’ with an insurance carrier that provides a certified, substantially equivalent fully-insured plan with benefits beginning no later than May 1, 2026.

For example, if an employer applies for a private plan exemption on April 1, 2025, and it is approved, they would only be responsible for one quarter of premium contributions. Previously, Maine employers with the intent to seek a private plan would have been responsible for up to six quarters of contributions prior to gaining approval.

Within the amended rule there are also noteworthy changes to the definition of substantial equivalence, undue hardship standards, contributions, affinity relationships, and more. The Unum Government Affairs team is happy to discuss this update and will continue to provide timely communications as we learn more through the rulemaking process.

As a reminder, contributions for Maine PFML begin January 1, 2025. Further detail regarding provisions within the private plan section of the rule will be provided as rulemaking progress. At this point, the rule is not final and is subject to change. A Public Hearing will take place on Sept. 17th at 9 a.m. in-person at the MDOL in Augusta. Public Comments will be accepted until 5 p.m. on Sept. 30th. The rule will be finalized following the conclusion of this process.