At Madison Resources, we strive to be more than just a payroll provider, we aim to be a true partner to your staffing firm. That’s why we closely monitor legislation like the Maine Paid Family and Medical Leave Law. Our mission is to keep you informed, enhance accuracy and efficiency and offer resources that support your success.
Background on the Law
On July 11, 2023, Governor Mills signed Maine’s state budget into law. As part of that budget, lawmakers introduced the Maine Paid Family and Medical Leave Law. This new program will allow eligible private and public sector workers to take up to 12 weeks of paid leave starting in 2026. They may use this time for personal illness, to care for a family member, or for the birth or adoption of a child.
Timeline and Contributions
To prepare for this program, contributions will begin on January 1, 2025. Employers and employees will each contribute 0.5% of wages, totaling 1% for businesses with 15 or more employees. For smaller businesses (those with fewer than 15 employees), only a 0.5% contribution will be required. Employers may either deduct this from paychecks or choose to cover the cost themselves.
What This Means for You
Ultimately, this law is designed not only to support workers but also to improve workforce stability and participation. Beginning May 1, 2026, the state will begin disbursing benefits.
Moreover, employees are required to provide reasonable notice before taking leave — unless an emergency or illness makes that impossible. Additionally, they should schedule leave in a way that minimizes disruption to business operations, as reasonably determined by the employer.
Impact on Employee Benefits
It’s important to note that taking leave under this program will not affect an employee’s ability to earn vacation time, bonuses, or other employment benefits. Likewise, seniority and service credit will continue uninterrupted. During the leave period, employers must also maintain any existing health insurance benefits at the same level, provided the employee continues to contribute as required.
How Madison Resources Supports You
As your payroll partner, we will manage PFML contributions on your behalf. This includes deducting the employee’s share, accruing the employer’s portion when applicable, and remitting the total to the State of Maine each quarter. Furthermore, we will handle required reporting to ensure you remain compliant.
As always, we recommend consulting your attorney, CPA, or industry advisor to ensure full understanding and compliance with the law.
For More Information Visit:
To contact the Maine 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)
Explore our website to find more Legislative Updates. Madison Resources is the premier payroll funding and back office support partner to the staffing industry. Grow with confidence.