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Maine Earned Paid Leave Law Update: PTO Accrual Increases to 80 Hours

At Madison Resources, we’re dedicated to supporting staffing firms by providing timely legislative insights, practical guidance, and resources that help you stay informed and compliant.

On July 1, 2025, Maine Governor Janet Mills signed into law LD 55, which increases the number of hours of legally required paid time off (PTO) an employee must be able to accumulate year-over-year. Changes to the accrual cap take effect on September 24, 2025.

What does this mean for you?

Under the current law, Maine’s earned paid leave law allows employees  to earn up to 40 hours of leave per year unless they carried over unused leave from the previous year.  If an employee carried over 40 hours of unused leave, the employee could not accrue any additional leave.  If the employee carried over less than 40 hours, the employee could earn additional hours of leave until reaching 40 hours.

LD 55 modifies the law to allow employees to continue accruing 40 hours of earned paid leave in a year even if they carried over unused leave from the previous year.  This means that an employee’s earned paid leave balance may reach 80 hours (40-hour carryover plus a new 40-hour accrual) which is twice the current cap.  If an employer’s policy allows a higher annual accrual limit than 40 hours, that limit applies instead, under the bill. 

Employers may choose to provide additional leave, but that is not required under state law, according to the DOL.

As always, we recommend speaking with your attorney, CPA, or industry professional for further guidance.

To access the Maine PFML site for FAQ’s, Updates and General Information:

https://www.maine.gov/labor/labor_laws/earnedpaidleave/index.shtml

Contact Information:

To contact the Department of Labor:

Maine DOL

Augusta Career Center

45 Commerce Drive

Augusta, ME 04330

Call:  1 (800) 593-7660 (Customer service available Mon-Fri, 8:00 am to 3:00 pm.)

 

To contact the Governor Janet Mills office:

1 State House Station

Augusta, ME 04333

Call: (207) 287-3531

Stay Informed. Stay Compliant. Grow With Confidence.

Explore our website to find more staffing insights. Madison Resources is the premier payroll funding and back office support partner to the staffing industry. Grow with confidence.

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Tyler Tierney
Tyler Tierney is a payroll funding specialist at Madison Resources, where he helps staffing firm owners secure funding solutions designed for long-term success. With deep experience in the staffing and payroll funding space, Tyler focuses on aligning the right capital structure with each firm’s growth strategy while keeping cash flow strong and operations running smoothly. He delivers timely legislative updates and analysis of industry trends impacting staffing firms.