As 2025 progresses, both federal and state lawmakers have passed legislation that impacts how employers handle wages, benefits, and employee protections. The newly signed One Big Beautiful Bill Act (OBBBA) at the federal level introduces sweeping changes to benefit programs and tax treatment. Meanwhile, Maine employers face new compliance requirements, including significant updates to minimum wage laws, earned paid leave, and reporting time pay.
KMA Human Resources Consulting is here to help you navigate these changes and keep your organization compliant.
Federal Changes Under the One Big Beautiful Bill Act (OBBBA)
Signed into law on July 4, 2025, OBBBA introduces several key updates that affect employee benefit offerings and employer-sponsored programs:
- Expanded Access to Health Savings Accounts (HSAs): More employees will be eligible to open and contribute to HSAs.
- Permanent Telehealth Flexibility: The telehealth exception for high-deductible health plans (HDHPs) is now permanent, helping more employees maintain HSA eligibility.
- Increased FSA Limits for Dependent Care: Annual contribution limits to dependent care flexible spending accounts (FSAs) will be raised.
- Continued Employer Assistance with Student Loans: Employers can keep offering tax-free student loan repayments beyond 2025, and make cost-of-living adjustments to educational assistance benefits.
- New Tax-Advantaged Accounts for Children: Employers can contribute up to $2,500 annually to a new type of savings account for employees’ children.
- Federal Tax Exemptions for Tips and Overtime: Employee tips and overtime wages will no longer be subject to federal income tax.
Maine’s New Reporting Time Pay Law for Larger Employers
Effective September 24, 2025, Maine will require employers with 10 or more to compensate nonexempt workers if scheduled hours are canceled or reduced without proper notice. In such cases, employees must be paid the lesser of:
- Two hours at their regular hourly rate, or
- The total pay for the scheduled shift
Exceptions Apply When Changes Are Due To:
- Severe weather or natural disasters
- Civil emergencies
- The employee’s own illness, medical condition, or workplace injury
If the employer makes a good faith, documented effort to inform the employee before they report to work – and is successful – they are not required to pay. If the employee still reports, the employer may assign any available duties or pay reporting time if no work is available.
Maine Earned Paid Leave: Accrual and Carryover Changes
Under Maine’s Earned Paid Leave law, also effective September 24, 2025, employers with 11 or more employees must now allow employees to accrue up to 40 hours of earned paid leave per benefit year, regardless of any carryover hours from the previous year.
Previously, carried-over leave reduced how much could be accrued in a new benefit year. The change means employees may now maintain balances that exceed 40 hours, for example, 40 hours accrued this year plus 40 hours carried over from last year. However, employers can still cap usage at 40 hours per year.
Maine Law Update: Agricultural Workers Must Be Paid State Minimum Wage
Beginning January 1, 2026, agricultural workers in Maine must be paid at least the state minimum wage, currently set at $14.65/hour (and adjusted annually based on the Consumer Price Index). This is a major shift from the previous standard, which allowed agricultural workers to be paid as little as the federal minimum of $7.25/hour.
In addition, employers must now provide wage statements for every pay period, detailing:
- Dates of the pay period
- Total hours worked
- Total gross earnings
- Itemized deductions
Statements can be issued in writing or electronically, but electronic statements must be accessible and printable at no cost to the employee.
Need Help Navigating These Changes? KMA Can Help.
These federal and state changes present a range of compliance challenges for employers of all sizes. Whether you need help revising your policies, updating your payroll systems, or training managers on new requirements, KMA Human Resources Consulting is here to guide you every step of the way.
Contact KMA today to ensure your organization is prepared and compliant with these changes.