An Act Regarding Employer Payments for the Paid Family and Medical Leave Benefits Program

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132nd MAINE LEGISLATURE
FIRST REGULAR SESSION-2025
Legislative Document No. 1169
H.P. 774 House of Representatives, March 20, 2025
An Act Regarding Employer Payments for the Paid Family and
Medical Leave Benefits Program
Reference to the Committee on Labor suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative SOBOLESKI of Phillips.
Cosponsored by Senator MARTIN of Oxford and
Representatives: BAGSHAW of Windham, DRINKWATER of Milford, GREENWOOD of
Wales, PERKINS of Dover-Foxcroft, QUINT of Hodgdon, SMITH of Palermo, WHITE of
Guilford, Senator: HAGGAN of Penobscot.

Page 1 - 132LR2017(01)
1Be it enacted by the People of the State of Maine as follows:
2Sec. 1. 26 MRSA §850-H, sub-§9 is enacted to read:
39. Refund of premiums. An employer with a private plan that was in place on or
4 before January 1, 2025 that is approved by the department pursuant to this section is entitled
5 to a refund of premiums paid pursuant to section 850-F in accordance with this subsection.
6 A. As used in this subsection, unless the context otherwise indicates, the following
7 terms have the following meanings.
8 (1) "Approved employer" means an employer whose private plan was approved by
9 the department pursuant to this section.
10 (2) "Premium" means the payroll premiums submitted pursuant to section 850-F,
11 subsection 2.
12 B. An approved employer, using a form prepared by the administrator, shall submit a
13 request for a refund of the premiums paid by the approved employer, specifying the
14 total amount of the premiums paid by the employer prior to approval of the plan.
15 C. The administrator, upon receipt of the form from an approved employer, shall verify
16 the amount of the refund requested and, within 90 days of receipt of the request, refund
17 the approved employer the total of premiums paid, plus interest to the date of payment
18 to the approved employer. The rate of interest must be the same as calculated pursuant
19 to Title 36, section 186.
20Sec. 2. Form and refund information. The Department of Labor shall develop
21 and make available on its publicly accessible website a refund request form and information
22 regarding the availability of a refund for employers whose private plan meets the
23 requirements of and is approved by the department as a substitute plan under the Maine
24 Revised Statutes, Title 26, section 850-H. The department shall meet the requirements of
25 this section no later than 45 days following the effective date of this Act.
26SUMMARY
27 Current law allows an employer that has a private plan substantially equivalent to the
28 paid family and medical leave plan established in the Maine Revised Statutes, Title 26,
29 chapter 7, subchapter 6-C and administered by the Department of Labor to apply for and
30 receive approval to not participate in the department's plan. Until approval is given, the
31 employer is responsible for the premiums of 1% of each employee's wages, 50% of which
32 may be paid by the employee.
33 This bill allows an employer whose private plan is approved by the department to
34 request a refund of the premiums paid if that employer had a substantially equivalent
35 private plan in place on or before January 1, 2025, the date that premiums started to be due.
36 The department or administrator, after verifying the amount paid by the employer, is
37 required, within 90 days of receipt of the refund request, to refund the employer the
38 premiums paid, plus interest that accrues to the date the refund payment is issued. The bill
39 also requires the department to make available information regarding the availability of a
40 refund.
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