Rules are still being finalized, but Maine’s Paid Family and Medical Leave program is on track to roll out May 1, 2026. At that time, employees must be able to access up to 12 weeks of paid leave per benefit year period for family, military, medical or safety reasons.

Maine is the 13^th state, as well as the District of Columbia, to enact a mandatory leave program. Maine’s program stands out from others because it will allow an employee to apply caretaking leave to anyone with whom they have a “significant personal bond.”

This program ushers in a major change in labor policy. Employers have a lot of work to do to prepare for a new public payroll deduction or to find a third-party carrier, but paid leave to care for family members is a positive benefit known to support employee retention and increase quality output.

“There are a lot of studies that show stressful events like family emergencies cause productivity loss,” said Russell Denver, Chief Compliance Officer at HUB International New England. “Like caring for an elder parent, it weighs on people’s minds: ‘Do they go into assisted living? Can we afford for a spouse to leave their job to caretake?’ You have so much to do when you get off work.”

Right now – Prepare and communicate

Employers will first evaluate which of their employees meet the residency requirements for Maine PFML. Remote employees based in Maine are covered by this law and will want to make sure their employer provides this benefit. Employers using the public option will work with their finance and HR departments to make sure they are ready for the payroll deduction.

If an employer is considering using a private plan rather than the state plan, they should begin conversations now with carriers of paid family and medical leave plans  and their insurance brokers. They should also keep an eye out for additional carriers that might enter the Maine market once final rules and regulations are released.

HUB International also recommends meeting with employees as early as possible about the new paid family and medical leave program and mandated payroll changes. They will need to be made aware of the upcoming deduction and their rights to use the benefit. Denver recalled rolling out the program at HUB offices in Massachusetts after they enacted a PFML program in 2019. He said people weren’t aware of the extent of circumstances covered beyond the federal paid leave program. For example, rather than using up their own sick time to care for a child, they could use PFML and reserve their PTO for their own wellbeing.

January 1, 2025 – Deductions begin

Deductions for the state’s PFML fund will begin on January 1.

• Employers with 15 or more employees will contribute 1% of wages and may deduct up to half of the contribution from their employees’ wages.

• Employers with 15 or fewer employees will contribute half a percent of wages and may deduct the entire contribution from their employees’ wages.

• Self-employed individuals may also benefit from this program. Their deduction rate has been set at half a percent of self-employment income. They must opt in through a process that will be clear in the final rules.

April 2025 – Private plan exemption deadline

Employers that decide that the private plan option is best for them and have short-term disability, long-term disability or leave absence programs administered by a carrier may decide that it makes sense for them to obtain a private PFML plan so that all employee absences can be coordinated.

Small business owners should keep in mind that an internal policy on its own, does not meet state requirements for a private plan. If they are not buying a fully funded plan from an insurance company, their self-funded plan will require a surety bond paid to the State.

May 1, 2026 – PFML is in effect

Benefits for employees go live May 1, 2026. Perhaps the employee needs two weeks to attend to household affairs after an enlisted spouse deploys. Maybe their parent needs support moving into assisted living. Or in Maine, it could be that a longtime roommate needs help after a surgery. Whatever the qualified reason, employers need to be ready to fill their shifts or redistribute responsibilities, a process that will be much easier with open lines of communication.

“My experience so far is that it takes a full two years for employers to get used to the process and comfortable with staffing,” said Denver, adding that it also takes about two years for state governments to balance the deduction rate and work out kinks in the program. “There are some negatives associated with the administration of it, but because of the serious investment made in employees as people, this is ultimately a very positive benefit.”

Are you an employer who needs help deciding between the private or public plan?  Contact HUB International and learn how they can help you provide an array of employee benefits.