Small business group pushes back against proposed paid leave mandate
The Maine chapter of the National Federation of Independent Business says a new paid leave mandate being proposed here would not only levy a new payroll tax, but it would also mean significant regulatory requirements for the small business community.
If passed, the Maine NFIB, an offshoot of a national small business advocacy organization, said the legislation would burden thousands of small businesses and jobs in the state, especially those that would lose vital protections built into existing leave laws.
On Nov. 2, 2022, the Maine Legislature created a 12-member statutory commission to draft a proposal that would provide 12 to 16 weeks of paid family and medical leave, as well as so-called safe leave, which would pertain to issues related to domestic abuse. The proposed law would cover all employees and self-employed people in the state.
The legislation could require employers of more than 15 workers to pay both the employee and employer share and prohibit employers from requiring that other types of employment leave must be used before a person can use family and medical leave.
“We are very concerned that activists will use the threat of a citizen-initiative referendum as a way to stampede legislators and the governor into accepting something that does not make good sense for Maine employers, employees, customers and local and state economies,” said NFIB State Director David Clough.
"Paying people to stay home for weeks when at the same time employers are struggling to find workers would be very difficult for small business owners across the state to manage and stay financially stable.”
Clough blamed progressive groups for “pushing a program that greatly expands current Maine family leave law and takes away existing protections that help small employers manage employee absences, at a time when employers are struggling to find enough workers to maintain regular hours or avoid unexpected closure of the small business."
The Authorizing Earned Employee Leave law that went into effect in Maine on Jan. 1, 2021, mandates earned employee leave for private employers that have 10 or more people on the payroll for more than 120 days in a calendar year. Under the current law, one hour of paid leave is provided for every 40 hours worked, up to a maximum of 40 hours per year.
President Joe Biden touched on the topic in his State of the Union Address on Feb. 7, when he said, “Let’s also make sure working parents can afford to raise a family with sick days, paid family and medical leave, and affordable child care that will enable millions more people to go to work.”
The NFIB issued the following statement in response to Biden's comment:
“Much of what we’re hearing from Washington is that roadblocks will continue to be put in front of them,” said NFIB President Brad Close. "Washington continues to create more rules and regulations that tip the scales in favor of the government and large corporate competitors.
"If Washington truly wants to ignite economic growth, they should focus on reforms and policies that eliminate red tape and lower taxes in order to help small businesses create jobs, raise wages, and help their communities.”
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12 to 16 weeks of paid leave. Say goodbye to Maine business.
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