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Maine Capitol Update

Maine Capitol Update

March 30, 2026

Paid Family Leave Applications Begin

Employees are now able to apply for Paid Family & Medical Leave benefits.  Leave must occur on or after May 1, 2026, to be approved.  The application and approval process is being handled by Aflac on behalf of the state.

Employees need to notify their employer when they know they’ll be out.  Written notice should include the leave reason (e.g., medical, parental, family care, military family, safe leave) and timing of the leave.  Documentation and approval are handled by Aflac.

Employers may request the employee schedule the particular leave at a time that does not create an undue hardship for the employer.  Disagreements between the employer and employee will be resolved by Alfac or ultimately, by officials at the Maine Department of Labor.

Up to 12 weeks of PFML leave can be taken within a 12-month period.

Employers are encouraged to access the PFML website for answers to Frequently Asked Questions, slide presentations and other guidance on the law and application process, and recordings of webinar videos such as the Feb. 18, 2026, webinar done with NFIB.

www.maine.gov/paidleave/employers/index.shtml

Extra support is available through the PFML call line at 207-621-5024.

 

“Tax the Rich” Demand Rises

Advocates of more tax revenues say legislators should “tax the rich” by increasing the top income tax rate.  For example, LD 1089 would impose a 2% surtax on taxable income of $1,000,000 or more (“millionaire tax”), raising Maine’s top rate to 9.15% and making it the highest in New England.  LD 229 would add two new top income tax brackets and make the top rate 8.95% for taxable income of $500,000 or more.  (Examples are for single filers.)  NFIB opposes these bills.

 

Overtime Payment Salary Issue Dangling

Legislation (LD 599) is pending that would increase the overtime payment salary threshold from $45,300 (2026) to $58,656.  Maine is one of only six states (Alaska, California, Colorado, New York, Washington) that exceed the federal level of $35,568.  Raising the overtime threshold is one of the key “affordability agenda” items for the Democratic legislative caucus.  NFIB opposes this increase.

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