Maine Capitol Update

September 13, 2024

The latest news on the state's minimum wage level and Paid Leave draft rules.

Maine Capitol Update

Maine Minimum Wage Rate $14.65 in 2025 Maine’s minimum wage is expected to be $14.65 for 2025, based on the latest data released last week by the U.S. Bureau of Labor Statistics, up from $14.15 for 2024. The State ties its minimum wage to yearly increases, as of August, in the Consumer Price Index for Urban Clerical Workers in the Northeast Region. CPI-W for Northeast Region increased by 3.6% from August 2023 to August 2024. The overtime payment salary threshold in 2025 will be or $58,656 per year ($1,128 per week) as established by federal labor rules issued in April. NFIB has filed a federal lawsuit to block those rules. www.maine.gov/labor/news_events/article.shtml?id=13014514 Portland and Rockland have a municipal minimum wage of $15 that is benchmarked to the general CPI-U for the Northeast for the same period, which is 3.4%, resulting in an expected minimum wage rate of $15.50 for those cities in 2025. Paid Leave Draft Rules Need More Refinement Revised draft rules to implement the Paid Family & Medical Leave law need further improvement and made more practical for small employers. The new draft is better than the version issued in May but still contain troublesome provisions and, in some cases, potentially contradict the PFML law. NFIB is focusing on changes in several key provisions of the rules:

Undue Hardship (Section V; Section VI)

Make this more workable for small business by removing limitation on its use and vastly simplifying the process demonstrating “reasonable” use by the employer. The rule as drafted appears contrary to the letter and spirit of the law.

Premiums (Section X)

Simplify and improve the counting of employees.

Job Protection (Section XIV)

Make this more realistic for small employers that have workers doing multiple jobs.

Intermittent Leave (Section III)

Establish predictability on the use of this leave by requiring that approval be for a certain calendar period, with ability to renew, and for specific days and time periods.

Impacts on Small Employers (Other Comments)

The rules should do more to recognize the impacts on small businesses. Employers with fewer than 15 workers will be the most affected because they have no experience with Maine’s unpaid Family & Medical Leave Act. The Maine FLMA requires employers with at least 15 workers to provide 10 weeks of leave every two years, not 12 weeks every year. NFIB is concerned the rules are being written for larger employers and do not recognize the particular impacts on small businesses. Over 30,000 small businesses will lose flexibility to manage workplace staffing when the paid leave law takes full effect in 2026. The PFML law affects every employer with at least one employee and entitles employees to as much as 12 weeks of paid leave annually for qualifying situations. It also requires employers of all sizes to assure job protection for employees who have worked at least 120 days at the business. A 1% tax on wages split evenly between employees and employers begins January 1, 2025. Employers with fewer than 15 workers are exempt from the 0.5% employer share. Paid leave benefits begin May 1, 2026. Public comments on the revised rules are due by September 30^th. The rules and website for submitting comments can be found here: www.maine.gov/labor/rulemaking/

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