Maine will begin providing benefits under its paid family and medical leave (PFML) program starting on May 1, 2026. This initiative aims to support workers needing time off for family or medical reasons, with eligibility requirements established for both employees and employers in the state.
In preparation for this significant rollout, employers with at least one employee in Maine commenced contributions to the PFML fund beginning in January 2025. These contributions are made through payroll deductions and employer contributions, ensuring the fund’s viability. On January 20, 2026, the Maine Paid Family and Medical Leave Benefits Authority confirmed that the fund was in a stable financial position to support benefits for “most Mainers” starting in May.
Understanding Benefits and Eligibility
Under the PFML program, eligible workers can take up to twelve weeks of paid time off. This leave can be utilized for various reasons, including family leave, medical leave, support during a family member’s military deployment, or to escape situations involving abuse or violence. Although the leave must occur on or after May 1, 2026, the state will start accepting applications for benefits in April 2026.
Both employers and employees are required to contribute to the PFML fund. For businesses with 15 or more employees, the contribution rate is set at 1 percent of wages. Employers can deduct up to half of this amount from employees’ wages. For smaller businesses with fewer than 15 employees, the contribution rate is 0.5 percent, which can be fully deducted from employee wages.
Job restoration is a critical aspect of the PFML program. Employees who have been with their employer for at least 120 days are guaranteed to return to their original position or a comparable one with equivalent pay and benefits. For those who have not met the 120-day employment threshold, job restoration is not mandated under the PFML law, although employers must consider other applicable laws that may influence employment decisions. Additionally, retaliation against employees utilizing approved PFML is strictly prohibited.
Compliance and Next Steps for Employers
Employers cannot compel employees to use other forms of paid time off, such as vacation or sick leave, during their PFML absence. However, it is important to note that Maine PFML benefits may run concurrently with unpaid leave under both the federal Family and Medical Leave Act (FMLA) and Maine’s Family Medical Leave law. If leave is taken under FMLA prior to the commencement of Maine PFML benefits, it will count towards the employee’s total twelve weeks of available leave, provided the reasons align with the qualifying criteria of the respective laws.
Maine PFML includes certain qualifying reasons for leave that may not be recognized under federal FMLA. Employers are encouraged to review their employee handbooks to ensure compliance with these regulations and to mitigate the potential for conflicting leave periods.
During PFML leave, employees will continue to accrue vacation time, sick leave, seniority, and service credits as they did prior to taking leave. Employers are also obligated to maintain health insurance coverage for employees on PFML leave.
As preparation for the implementation of this program, employers in Maine may consider training managers to effectively understand the law and to handle PFML leave requests appropriately. Coordination with third-party payroll providers will be vital to ensure that payroll withholdings for the PFML program are managed accurately. The Maine Department of Labor will oversee the distribution of benefits under this new initiative, marking a significant step forward in supporting the workforce in the state.
