Below is our interview with Leora Kirk, HR Consultant, on Maine’s Paid Family and Medical Leave Act (PFMLA) and what employers need to know to get prepared. This Q&A covers essential information about employer contributions, eligibility requirements, communication guidelines, and strategies for compliance, helping Maine employers get a head start before the law goes into effect in 2025.
Q: Which employees are eligible for PFMLA benefits? Does this include part-time or seasonal employees?
The law covers all employees working for a Maine employer, including part-time and seasonal employees, as long as they meet the minimum earnings threshold. Employees must earn a minimum amount during the base period to qualify.
Q: What is the contribution rate for employers and employees, and how will it be calculated?
Contributions will be shared by both employers and employees. As of the latest update, the combined rate is 1% of wages, shared between employers (50%) and employees (50%), but this may vary based on the size of the employer. Employers with fewer than 15 employees are exempt from paying the employer portion but must still withhold and remit the employee’s share.
Q: Are employers required to cover the full contribution if employees do not contribute?
Employers are responsible only for their portion of contributions. Employees are responsible for their share, and employers should set up payroll deductions to manage this.
Q: What specific information are we required to communicate to employees about PFMLA?
Employers are required to inform employees of their PFMLA rights, including eligibility criteria, benefit amounts, leave duration, and steps to apply for leave. Maine will likely provide a model notice closer to the law’s effective date.
Q: When and how often should we communicate PFMLA policies and options to employees?
Initial communication should happen prior to the 2025 effective date, with updates at least annually. It’s also best practice to incorporate PFMLA information in onboarding materials, your employee handbook, and to display it on workplace bulletin boards. Download the poster here.
Q: What support or resources should we offer employees to help them understand the new law?
Providing informational sessions or distributing FAQs and state-provided brochures will help. Additionally, designating an HR contact internally, or engaging with KMA to provide this service, to answer PFMLA questions ensures employees have a point of contact for clarity.
Q: How do we manage payroll deductions, and what are the best practices for implementing these changes?
Payroll software should be updated to reflect the new PFMLA deduction line. Start early with your payroll provider to integrate and test the deduction feature and educate your employees about these deductions.
Q: Will there be a mechanism to “opt out” if we provide comparable benefits?
Yes, employers may apply for an exemption if they provide a comparable private plan. Exemptions require state approval, with documentation demonstrating that the private plan provides equal or better benefits.
Q: What is the impact on other employee benefits, such as health insurance, during their leave period?
Under PFMLA, employers must continue an employee’s health insurance coverage during the leave period, similar to FMLA requirements.
Q: Are there specific legal or HR consultants we should engage to help navigate the requirements?
Consulting with KMA, whose consultants can offer Maine-specific expertise, or engaging a legal professional experienced in employment law can help clarify PFMLA requirements.
Q: Will there be additional state-provided resources or workshops for employers to better understand the law and implement it effectively?
Yes, the Maine Department of Labor will likely provide online resources, FAQs, webinars, and possibly live workshops. Staying updated on these resources will help clarify compliance requirements and ensure smooth implementation. Visit the MPFML webpage to learn more about the regulations.
Additional resources:
WhatEmployersNeedtoKnowJanuary2025.docx
Webinar recording on Preparing for Maine’s PFMLA
As always, reach out to the team at KMA for guidance!