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A new benefit for Maine workers will kick in on May 1, 2026, entitling nearly all employees in the state to take up to 12 weeks of paid leave annually for medical care, caregiving or parental time with a newborn.
Funding will come from a 1% payroll tax starting in 2025, split evenly between employers and employees at businesses with more than 15 workers.
Despite pushback from many businesses, the paid leave proposal easily passed the Maine Legislature in June and was signed into law the following month by Gov. Janet Mils.
As Mainebiz reported in its Nov. 13 cover story, the new benefit is being called one of the country’s broadest and most generous.
Sponsored by: GoNetspeed, a fiber internet provider
A new benefit for Maine workers will kick in on May 1, 2026, entitling nearly all employees in the state to take up to 12 weeks of paid leave annually for medical care, caregiving or parental time with a newborn.
Funding will come from a 1% payroll tax starting in 2025, split evenly between employers and employees at businesses with more than 15 workers.
Despite pushback from many businesses, the paid leave proposal easily passed the Maine Legislature in June and was signed into law the following month by Gov. Janet Mils.
As Mainebiz reported in its Nov. 13 cover story, the new benefit is being called one of the country’s broadest and most generous.
Isn't it wonderful that our state government is giving the broadest and most generous paid leave package in the country, and they are doing it by taxing our businesses and working people even more? How in the world can small businesses operate without key employees for close to three months? Adding this extra tax in with the lack of employees due to Maine having one of the country's broadest and most generous welfare benefits and programs makes you realize that the state employees in Augusta want to keep growing the need for state employees and agencies. They will fund it with the working people's and businesses' taxed dollars.
This law will be particularly difficult for small businesses which are currently short staffed.
It appears that Governor Mills is out to kill small businesses in Maine with all the new regs she has put in place. First it was EPL, then a forced retirement program. Although the later can be done with no cost to the employer, it still takes time to set it up and manage it, and in the end 100% of your employees can opt out, so it could easily end up being an exercise in futility. As for this new reg being forced on us, a lot about this bill puts small businesses that much closer to having to close their doors.
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Collecting more taxes than is necessary is legalized robbery, stated Calvin Coolidge. This extra tax on Maine's businesses and working people is one more program for the rulers in Augusta to manage. Most companies have reasonable family leave plans, but all businesses now have to pay for this mandated by the government plan!