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132nd MAINE LEGISLATURE
FIRST SPECIAL SESSION-2025
Legislative Document No. 1307
S.P. 537 In Senate, March 27, 2025
An Act to Suspend the Remittance Obligation for Paid Family and
Medical Leave Private Plan Users
(EMERGENCY)
Reference to the Committee on Labor suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BRADSTREET of Kennebec.
Cosponsored by Senator BICKFORD of Androscoggin and
Senators: CYRWAY of Kennebec, MARTIN of Oxford, STEWART of Aroostook,
Representatives: FLYNN of Albion, FOSTER of Dexter, GUERRETTE of Caribou.
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1Emergency preamble. Whereas, acts and resolves of the Legislature do not
2 become effective until 90 days after adjournment unless enacted as emergencies; and
3Whereas, the State began imposing premiums on employers January 1, 2025 under
4 the State's paid family and medical leave law; and
5Whereas, under the State's plan, an employer that has a substantially equivalent
6 private plan may be excepted from participating in the State's plan; and
7Whereas, under rules adopted by the Department of Labor, employers cannot apply
8 for the exception from the State's plan until after April 1, 2025; and
9Whereas, this delay in the application and approval for an exception process causes
10 employers that have a substantially equivalent private plan to continue to pay premiums
11 for the State's plan, essentially requiring double payment for an equivalent benefit; and
12Whereas, in the judgment of the Legislature, these facts create an emergency within
13 the meaning of the Constitution of Maine and require the following legislation as
14 immediately necessary for the preservation of the public peace, health and safety; now,
15 therefore,
16Be it enacted by the People of the State of Maine as follows:
17Sec. 1. Temporary suspension of mandatory payroll premiums for paid
18family and medical leave benefits program. Notwithstanding the Maine Revised
19 Statutes, Title 26, section 850-F, subsection 2, the mandatory remittance by an employer
20 of the payroll premium imposed pursuant to Title 26, section 850-F, subsection 3 to support
21 the paid family and medical leave benefits program established in Title 26, section 850-B
22 is suspended until January 1, 2026. An employer that wishes to continue participation in
23 the program may continue to pay the payroll premium required by Title 26, section 850-F,
24 subsection 2.
25Sec. 2. Rules establishing expedited exemption process and waiver of
26payroll premiums. Pursuant to its rule-making authority under the Maine Revised
27 Statutes, Title 26, section 850-Q, the Department of Labor shall amend 12-702 C.M.R.
28 Chapter 1: Rules governing the Maine Paid Family and Medical Leave Program to
29 implement an expedited approval process for private plans that meet the requirements of
30 Title 26, section 850-H. The rules must allow an employer that applies for an exemption
31 from the plan to discontinue the payment of the payroll premium imposed pursuant to Title
32 26, section 850-F, subsection 3 while the application is pending. The rules must be in effect
33 no later than November 1, 2025.
34Emergency clause. In view of the emergency cited in the preamble, this legislation
35 takes effect when approved.
36SUMMARY
37 This bill immediately suspends the payroll premiums imposed on employers under the
38 paid family and medical leave benefits program until January 1, 2026, but allows an
39 employer that wants to participate in the program to continue to pay the premiums. The
40 bill also requires the Department of Labor to amend its rules adopted for the program to
41 establish an expedited process for approval of an employer's substitute private plan that is
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42 substantially equivalent to the program and to waive the payroll premiums during
43 consideration of an employer's application for exemption. The rules must be in effect no
44 later than November 1, 2025.
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