An Act to Expand Access to the Maine Wage Assurance Fund

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STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-FIVE
_____
H.P. 30 - L.D. 66
An Act to Expand Access to the Maine Wage Assurance Fund
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 26 MRSA §632, as corrected by RR 2023, c. 2, Pt. E, §21, is amended to
read:
§632. Fund for unpaid wages and certain liquidated damages
1. Fund established. There is established the Maine Wage Assurance Fund to be used
by the Bureau of Labor Standards within the Department of Labor for the purpose of
assuring that all former employees of employers within the State receive payment for wages
and liquidated damages, in an amount equal to the wages, for a maximum of 2 4 weeks for
the work they have performed. The Legislature intends that payment of earned wages and
liquidated damages from the fund be limited to those cases when the employer has
terminated the employer's business and there are no assets of the employer from which
earned wages may be paid or when the employer has filed under any provision of the
Federal Bankruptcy Act. An officer or director in the case of a corporation, partner in the
case of a partnership or owner in the case of a sole proprietorship may not be considered
an employee for purposes of this section.
2. Administration. The fund shall must be administered by the Director of the Bureau
of Labor Standards. Applications for payment from the fund and disbursements from the
fund shall must be in accordance with regulations promulgated rules adopted by the
director. The State shall must be subrogated to any claims against an employer for unpaid
wages and liquidated damages, in an amount equal to the wages, by an employee who has
received payment from the fund. Subrogation to these claims shall must be to the extent of
payment from the fund to the employee.
3. Amount in fund. The Maine Wage Assurance Fund is a nonlapsing, revolving
fund limited to a maximum of $200,000. All money collected from an employer pursuant
to a claim for unpaid wages and liquidated damages, in an amount equal to the wages, by
an employee who has received payment from the fund, or by the State as the employee's
subrogee, is credited to the fund.
The fund must be established and augmented periodically as necessary.
APPROVED
JUNE 9, 2025
BY GOVERNOR
CHAPTER
192
PUBLIC LAW
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Money in the fund not needed currently to meet claims against the fund must be deposited
with the Treasurer of State to be credited to the fund and may be invested in such manner
as is provided for by statute. Interest received on that investment must be credited to the
Maine Wage Assurance Fund.