Chamber looks to work out the wrinkles in paid-leave law

FILE PHOTO Patrick Woodcock, president and CEO of the Maine State Chamber of Commerce, says Maine’s paid leave law, which went into effect on Jan. 1, is still being modified.

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By Peter Van Allen

One of the biggest issues in the Maine Legislature has been the paid-leave law, which went into effect on Jan. 1.

Employers are now required to make payroll contributions that go into a pool for wage replacement.

But, while the law has gone into effect, Patrick Woodcock, president and CEO of the Maine State Chamber of Commerce, says the system will still be modified. “It could still be retooled,” he says.

In particular, he’d like to see the language of the law clarified so businesses better understand the process. He is also urging the Legislature to close a loophole that could be exploited. “Benefits should be taxed,” so that companies can use the payroll contributions as a tax shelter.

While 12 states have similar laws in effect, Woodcock says Rhode Island’s model might be the closest comparable for Maine and its economy.

Need for new housing

Maine needs another 80,000 units of housing, according to the Governor’s Office for Policy Innovation and the Future.

Woodcock is urging policy makers to ease zoning restrictions and allow for more new housing starts.

“Housing is a barrier for meeting Maine’s potential,” he says.

Interest rates, the pandemic and in-migration have all created more demand for housing. You can’t control the market, but you can create more housing, he argues.

“It starts on the policy side. The legislature and local municipalities need to balance zoning and make it easier to get housing built.”

Tariff and workforce concerns

President-elect Donald Trump’s plan to increase trade tariffs could have a damaging effect on Maine’s forest products and seafood industries.

Woodcock is also concerned about trade with Canada, which helps fill some of Maine’s energy and oil needs.

Woodcock is also keeping an eye on the new administration’s promised crackdown on immigration.

He says authorized workers are a “critical” part of Maine’s economy, particularly in the seafood processing and construction sectors. Worker visas are also critical to the seasonal tourism and agriculture workforces.

“Every year has a new wrinkle,” he says.