FranklyHR_blog_Header (1)

 

Maine Updates

 

Paid Family and Medical Leave

 
Effective May 1, 2026, all Maine employers with eligible employees located in the state must provide up to 12 weeks of leave under Maine's paid family and medical leave (PFML) program. Employees may begin taking leave on May 1, 2026.
 
However, employer and employee contributions to fund the program began earlier, on January 1, 2025.
 
The law also requires employers to post a notice of benefits and issue a written notice to each employee within 30 days of their hire date.
 
Note: The technical effective date of the law establishing the PFML program is January 1, 2026, and amendments impacting certain definitions and intermittent leave requirements were passed with an effective date of July 16, 2024.
 
You can get FAQs, notices, posters, and more at this link: https://www.maine.gov/paidleave/ 
 
 

Previous Updates

 

 

Earned Paid Leave Amendments

 
Effective September 24, 2025, Maine amends its Earned Paid Leave Law to specify that:
 
  • Accrued, unused leave may be carried over to the following year; and
  • Carried over leave may not reduce the total amount of hours of leave an employee is entitled to earn in the following year (up to 40 hours or the accrual limit specified in the employer's paid leave policy, whichever is higher).
 
Previously, carryover was addressed only in the law's implementing rules and FAQs, which limited employees to a total of 40 hours of accrued and carried over leave.
 
You can read more about Earned Paid Leave here.
 

 

 

Show Up Time/Reporting Time Pay

 
Effective September 24, 2025, Maine’s new “Report to Work” law (LD 598) requires employers with 10 or more employees to pay workers a minimum amount when they report to work as scheduled but are sent home early or have their shift canceled after arriving. Employers must pay the lesser of two hours’ wages at the employee’s regular rate or the wages for the originally scheduled shift.

Certain exemptions apply, including seasonal workers and situations involving adverse weather or employee illness. Employers can avoid liability if they notify employees in good faith before the shift starts that their services will not be needed.
 

Broadened Domestic Violence Discrimination Protections

 
Effective September 24, 2025, the Maine Human Rights Act is amended to broaden discrimination protections for individuals who have received an order of protection under a domestic violence law. In addition to individuals who have received an order of protection under the current or former Maine domestic violence law, an employer may not discriminate against an individual who has received an order of protection under a substantially similar law of another state or nation.
 

 

Minimum Wages

 
The minimum wage in Portland and Rockland, Maine, will increase to $15.50 beginning January 1, 2025.
Portland and Rockland’s tipped workers must be paid a wage of at least $7.75 cash per hour beginning January 1, 2025.
 

Paid Family and Medical Leave

 
Following last month’s FrankCrum News Alert, the Maine Paid Leave Contributions Portal will be released on January 6th.
 
All employers will be required to register with the Department via this portal to determine their liability for PFML contributions and to designate a third-party payroll company if they wish. All liable and active employers must create an account in the portal to electronically file quarterly wage reports and make contribution payments.
 
You can designate FrankCrum as your payroll provider and we can submit your contribution payments and file the quarterly reports on your behalf.
 
Get FAQs and stay up to date on the latest information at Maine.gov/paidleave. Sign up for the “Get Notified” email list to get program and portal information as it is released.
 

 

Compensation to Underpaid Workers

 
This month, an Act to Increase Enforcement and Accountability for Wage Violations went into effect. This allows Maine’s DOL the ability to order employers to pay back wages, liquidated damages and interest to workers affected by labor law violations. Previously the DOL could only impose fines, or compel an employer to pay owed wages by obtaining a judgement in court.
 
 

 

Equal Pay Law Amended

 
Effective October 25, 2023, the Maine Equal Pay Law is amended to prohibit pay discrimination on the basis of race.
The law applies to all employers in Maine with one or more employees.
 

New Retaliation Penalties

 
Effective October 25, 2023, a Maine law imposes penalties on any employer that retaliates against an employee for exercising their protected rights under state laws governing employment practices. Employers may be subject to a fine of at least $500 and no more than $1,000 for each violation. Additionally, the state Department of Labor and state attorney general may file a civil action to enforce this law.

 

 

Pay Frequency and Recordkeeping Requirements

 
Originally slated for an effective date of September 19, 2023, now effective October 25, 2023, members of an employer's family and salaried employees are exempt from the requirement to pay all wages earned to nonexempt employees in full at regular intervals that are not more than 16 days apart. The exemption also applies to employees of limited liability partnerships and S corporations.

Such employees are also exempt from certain recordkeeping requirements.
 
 

Tip-Pooling Statute Amended

 
Effective October 25, 2023, Maine's tip-pooling statute is amended to allow employers to establish a valid tip-pooling arrangement among a group of employees that includes non-service employees, as long as the employer pays all employees in the group the minimum hourly wage and does not claim a tip credit. An employer may not receive tips from such a tip pool and may not allow supervisors and managers to receive tips from the tip pool.

 

Captive Audience Meetings

 
The Governor has signed a bill into law that makes it illegal for an employer to administer corrective action or fire workers who don’t want to attend employer-captive audience meetings about religion or politics, including whether to form a union.

Employers may continue to hold these meetings, but they can no longer compel workers to attend.
 

Pay Frequency and Recordkeeping Requirements

 
Effective September 19, 2023, members of an employer's family and salaried employees are exempt from the requirement to pay all wages earned to nonexempt employees in full at regular intervals that are not more than 16 days apart. The exemption also applies to employees of limited liability partnerships and S corporations.
Such employees are also exempt from certain recordkeeping requirements. The exemptions include retaining records of the following for at least three years:
    • The hours worked;
    • The wages paid;
    • Date and amount paid; and
    • Daily record of the time worked

 

Paid Family and Medical Leave

 
Maine has become the 13th state to offer paid family and medical leave.  L.D. 1964 will provide up to 12 weeks of paid leave per year to eligible employees.
The plan permits employees to take leave to care for any individual with whom they have "a significant personal bond that is or is like a family relationship regardless of biological or legal relationship." Employees can take paid leave immediately after starting employment.
To pay for this new program, the state will impose a 1% payroll tax, split evenly between the employer and employee. Maine will begin assessing the 1% payroll tax on Jan. 1, 2025. Employees will be able to start taking paid family and medical leave on Jan. 1, 2026.

 

Final Pay Law Amended

 
Maine's final pay law is amended to require employers with 11 or more employees to pay terminated employees (including those terminated due to the sale of the employer's business) all unused, paid vacation accrued pursuant to the employer's vacation policy on and after January 1, 2023. The law is superseded by any applicable collective bargaining agreement that addresses payment of vacation pay on cessation of employment.
The amendment also expands employer liability to include all accrued vacation pay owed when employment ends (in addition to the amount of unpaid wages due, as provided under current law), plus interest and twice the amount of the unpaid wages and the accrued vacation pay as liquidated damages.

 

Maine Human Rights Act

Effective August 8, 2022, the Maine Human Rights Act is amended to specify that the definition of race includes traits associated with race, including hair texture, Afro hairstyles, and protective hairstyles. Protective hairstyles include braids, twists, and locks.

 

 

Restricted Use of Nondisclosure Agreements
Effective August 8, 2022, an employer may not require an employee, intern or job applicant to enter into an agreement that waives or limits their right to report or discuss unlawful employment discrimination that occurs in the workplace or at work-related events.
 
In addition, an employer cannot require such individuals to enter into an agreement that:
 
  • Limits or prevents their right to report, testify or provide evidence to a federal or state agency that enforces employment or discrimination laws;
  • Prevents them from testifying in court in response to legal process; or
  • Prohibits them from reporting conduct to a law enforcement agency.
 
However, a settlement, separation or severance agreement may include a provision that prevents subsequent disclosure of facts relating to a claim of unlawful employment discrimination if the agreement expressly provides for separate monetary consideration for the provision and meets other statutory conditions.
 
You can learn more here.

 

 

 

Charges for Direct Deposit

Employers may not charge a fee for paying wages by direct deposit. Direct deposit means the transfer of wages through electronic funds transfer directly into an employee designated account within an accredited financial institution.

 

 

Permitted and Prohibited Wage Deductions

Deductions may be made to recoup the overcompensation of wages erroneously paid by an employer. Such deductions are now limited to 5% (previously limited to 10%) if made without the employee's permission. However, 100% may be deducted from the final pay of an employee who voluntarily terminates employment if authorized by the employee in writing (the 5% limit applies to involuntary terminations if the deduction is made without the employee's written authorization).

 

The following payments are excluded from the definition of overcompensation and therefore are not subject to deductions to recoup an erroneous overpayment:

 

  • Paid leave, time away from work for which the employee receives compensation, and is limited to sick time, vacation time, compensatory time and leave that is provided as an aggregate amount for use at the discretion of the employee for any of these same purposes; paid leave does not include paid short-term or long-term disability, catastrophic leave or similar types of benefits;
  • Bonuses;
  • Fringe benefits;
  • Awards;
  • Settlements or insurance proceeds with respect to or in lieu of compensation;
  • Expense reimbursements;
  • Commissions; and
  • Draws or advances against compensation.

Further, an employer that has erroneously overpaid an employee may not recoup more than the amount of the overcompensation paid to the employee in the three years before the date the employer discovered the overpayment.

 

Amendments to Emergency Responder Leave Law

Effective October 18, 2021, Maine's emergency responder leave law is amended to clarify that an emergency medical services person may also be designated as essential.

The law is also amended to state that the employee must present the policy of the fire department or emergency medical service provider to the employer within 30 days of notifying the employer of the employee's status as a firefighter or emergency medical services person.

 

Amendments to Wage Overpayment Limitations

Effective October 18, 2021, Maine's law regarding wage overpayments erroneously made by an employer is amended as follows:

 

  • The maximum amount an employer may deduct from the pay of an employee to recover an overpayment without the employee's written permission is reduced from 10% to 5%;
  • Paid leave is added to the types of compensation that are excluded from the definition of overcompensation; and
  • An employer may not recoup more than the amount of the overcompensation paid to an employee in the three years before the date the employer discovered the overpayment.

 

Discrimination Against Domestic Violence Victims

Effective October 18, 2021, the Maine Human Rights Act is amended to prohibit discrimination against individuals who have sought and received an order of protection under the state's domestic violence law.

The law applies to any person in the state employing any number of employees, as well as employment agencies and labor organizations.

Amendment to Family and Medical Leave Law

Effective October 18, 2021, Maine's Family and Medical Leave Act is amended to allow a grandparent to request employee family medical leave to care for a grandchild or domestic partner's grandchild who has a serious health condition.

Ban the Box Law

Effective October 18, 2021, Maine has enacted a ban the box law that limits preemployment criminal background inquiries.

Specifically, an employer may not request criminal history information on an initial employee application form or specify on an application form or advertisement that a person with a criminal history may not apply or will not be considered. Exceptions apply if another federal or state law, rule or regulation disqualifies individuals convicted of certain criminal offenses from holding the position.

An employer may inquire about a prospective employee's criminal history during an interview or once the individual has been determined to be otherwise qualified for the position. The employer must give the prospective employee an opportunity to explain the information and circumstances regarding any convictions, including post-conviction rehabilitation.

Maine Human Rights Act (MHRA)

Effective October 18, 2021, the Maine Human Rights Act (MHRA) is amended to prohibit employment discrimination on the basis of an individual's familial status or actual or perceived gender identity.

Familial status means a family unit containing:

  • One or more individuals under 18 living with a parent or guardian or the parent or guardian's designee; or
  • One or more individuals 18 or older who lack the ability to meet essential requirements for physical health, safety or self-care because of an inability to receive and evaluate information or make or communicate decisions.


Gender identity means the gender-related identity, appearance, mannerisms or other gender-related characteristics of an individual, regardless of the individual's assigned sex at birth.

 

The MHRA is also amended to clarify an employer's obligations regarding the employment of individuals with a physical or mental disability. An employer is not prohibited from terminating or refusing to hire an individual with a physical or mental disability, or subject an employer to any legal liability resulting from the termination of or the refusal to employ the individual with a disability, if the employer establishes that the individual, because of the disability, is unable to:

 

  • Perform job duties, or
  • Perform job duties in a manner that would not endanger the individual's or others' health or safety.

 

 

December 2020

Paid Leave Law

As a reminder, on Jan. 1, 2021, private employers with more than 10 employees in Maine must provide one hour of paid leave for every 40 hours worked, up to a maximum of 40 hours of paid leave per year. This leave is not just sick time it is for any reason whatsoever. The law does not cover seasonal employees, independent contractors, and employees working fewer than 120 days in any calendar year. Employees begin to earn leave upon hire, but employers may restrict the use of leave until an employee has been employed for 120 days.

 

Final Rules: 

https://www.maine.gov/labor/docs/2020/laborlaws/EarnedPaidLeaveRuleFinalClean.pdf

 

Required Poster: 

https://www.maine.gov/labor/docs/2020/posters/regulationofemployment.pdf

 

October 2020

Earned Paid Employee Leave Law

On Jan. 1, 2021, private employers with more than 10 employees in Maine must provide one hour of paid leave for every 40 hours worked, up to a maximum of 40 hours of paid leave per year. This leave is not just sick time it is for any reason whatsoever. The law does not cover seasonal employees, independent contractors, and employees working fewer than 120 days in any calendar year.

 

Employees begin to earn leave upon hire, but employers may restrict the use of leave until an employee has been employed for 120 days. If an employer has a policy of paying out vacation time upon termination of employment then the same policy will apply to earned paid leave. If an employer does not pay out the unused earned paid leave at termination of employment and an employee returns to work within one year, the employee will be entitled to the amount of unused leave at the time of rehire.

 

Final Rules: https://www.maine.gov/labor/docs/2020/laborlaws/EarnedPaidLeaveRuleFinalClean.pdf

Required Poster: https://www.maine.gov/labor/docs/2020/posters/regulationofemployment.pdf