With just a few weeks left in the 2025 session, key labor and tax legislation will finally be voted by legislators.

Flexible Work Schedules (LD 60) – Requires employers to provide written explanation for not approving an employee’s written request for a flexible work schedule.  Lists 10 conditions of what is considered “inconsistent with employer operations.”

Show-up Pay (LD 598) – Requires employers of 10 or more employees to provide up to 2 hours of pay when an employee reports to work and the employer cancels or reduces a shift without prior notification to the employee.  Includes exceptions for weather, disasters, and emergencies.

Raise Overtime Pay Salary Threshold (LD 599) – Raises the 2025 salary threshold from $43,951 to $58,656 in January 2026 and provides for automatic future increases.  Makes the Maine salary threshold 4^th highest in the nation.  The current threshold is 3000 times the indexed state minimum wage.

Paid Family & Medical Leave – Repeal (LD 406) – Eliminates 2023 PFML law and requires refund of taxes (“contributions”) paid into the fund by employers and employees.  Maine is one of only 14 states with a comprehensive mandatory paid family leave law.

Paid Family & Medical Leave – Revise (Minority Report to LD 894) – Minority Report proposes 10 improvements sought by employers that would make it easier for employers to operate under the law – including less cumbersome “undue hardship” protection for small employers – and avoid future complications with compliance.

Paid Family & Medical Leave – Revise (LD 1333, LD 1712) – Both bills propose improvements to the PFML law that are identical to those in the Minority Report to LD 894.  Both bills also establish a benefit amount, regardless of income, of 65% of an employee’s average weekly wage up to the state average weekly wage maximum benefit amount.

Increase Income Tax Rate to 8.95% (LD 229) – Proposes adjusting taxable income brackets, adding two additional tax brackets, and raising the top rates from 7.15% to 7.75% and 8.95% for the new brackets.  Maine would have the 2^nd highest tax rate in New England and 9^th highest in the nation.

Set Top Income Tax Rate at 9.15% (LD 1089) – Proposes adding a 2% surtax for taxable income of at least $1,000,000 (single filers), $2,000,000 (married joint filers).  Maine would have the highest tax rate in New England and 7^th highest in the nation.

Raise Top Corporate Income Tax Rate to 10% (LD 1879) – Raises the top rate from 8.93% to 10% for corporations with taxable income of at least $3,500,000.  Maine would have the nation’s 2^nd highest top tax rate for corporations.

Information on legislators and bills is available here: https://legislature.maine.gov/