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Yahoo
3 days ago
- Business
- Yahoo
Lawmakers reject proposals that would roll back new paid family and medical leave program
Jun. 2—AUGUSTA — Lawmakers on Monday rejected proposals that would roll back protections in Maine's new paid family and medical leave program, including bills that would repeal the program, make it voluntary and that would exclude certain workers from coverage. The House of Representatives voted 75-65 to reject a bill repealing the program and 74-65 to reject a bill that would make it voluntary for employers and employees to participate. The Senate voted 20-14 against a bill to exempt agricultural employers and employees from the program. The bills face further votes in both chambers, but the action Monday indicates the program approved in 2023 likely won't be significantly changed by lawmakers despite Republican-led efforts to either repeal the program entirely or change aspects of it. Democrats in the House defended the fledgling program Monday, saying that while the state has only just begun collecting the new payroll tax to fund the program and benefits won't be available until next year, it promises to improve the lives of families. "It's a popular program, even before it was in law or before it pays out a single benefit," said Rep. Amy Roeder, D-Bangor. Roeder said there has been speculation that the costs of the program will "spiral out of control," but said experiences in other states have shown otherwise. "Paid family programs across the country have remained stable over time, with most states avoiding major rate increases and no premium over 1.2%," Roeder said. As of August 2024, Maine and 12 other states had adopted mandatory paid family and medical leave programs, while eight states have voluntary paid leave options that employers can purchase through private insurers, according to the National Conference of State Legislatures. The Maine program is funded with a 1% payroll tax split evenly between employers and employees. When benefits become available on May 1, 2026, the program will pay up to 90% of regular wages for up to 12 weeks for workers who are ill or need to take care of newborns or other family members, among other reasons. Employers with fewer than 15 workers are exempt from paying into the program, but workers at small businesses still pay a 0.5% payroll tax and will be eligible for benefits. Republicans in the House pushed for repeal of the program, saying it's been difficult for businesses to implement and a burden for taxpayers, particularly those who pay into the program but may never use it. "Maine citizens currently shoulder one of the highest tax burdens in the nation," said Rep. Joshua Morris, R-Turner, the sponsor of LD 406, which would repeal laws related to the paid family and medical leave program. "As of Jan. 1, with the implementation of this new payroll tax, that burden has only gotten higher." LD 406 was rejected 75-65 along party lines in an initial House vote Monday and now heads to the Senate. Other changes to the program were also rejected in initial votes Monday. LD 1333, sponsored by Rep. Jennifer Poirier, R-Skowhegan, would require employees to be employed with their employer for 120 days before they're eligible for leave and would prohibit employees from taking paid leave unless they have simultaneously taken any available unpaid leave, among other changes. Poirier said the bill would add fairness and sustainability to the program. "This bill will help ensure there are proper guardrails on the program," she said. The bill was defeated 75-63 and heads to the Senate. In a House debate, Roeder addressed the requirement for an employee to be with their employer for 120 days, saying that an employee's payment into the program should follow them from job to job. "If I worked at a company for 20 years and I quit and go to another company, I should be able to use the paid leave I earned over that 20 years," she said. The House on Monday also rejected a bipartisan proposal, LD 1712, from Rep. Tiffany Roberts, D-South Berwick, for changes to the program. In the Senate, lawmakers rejected bills Monday that would exempt agricultural employees and employers from the program and that would allow for reimbursements of payroll taxes collected from businesses who offer equivalent or superior private plans. Both bills were rejected 20-14. The Senate also approved LD 894, a Department of Labor bill providing clarifying and technical changes to the current law. Both chambers gave initial approval Monday to LD 1221, which directs the department to study ways to protect the program's funds from being expended for any purposes other than paid family and medical leave benefits. Copy the Story Link
Yahoo
08-05-2025
- Business
- Yahoo
Labor committee opts to keep paid family and medical leave program in tact, for now
Advocates and lawmakers in May 2023 rallied outside the Maine State House in support of Paid Family and Medical Leave, which was signed into law later that spring. (via Maine Center for Economic Policy) Heeding the advice from the Maine Legislature's Democratic leadership, the Labor Committee is not endorsing proposals that would make substantial changes to the state's new paid family and medical leave program. While voting on a series of bills related to the new benefit program Wednesday afternoon, the majority of the committee threw its support behind just two of them. Though a proposal intended to safeguard the future of the program's trust fund drew bipartisan support, Democrats voted down any new exemptions to the program, as well as an effort to make the benefit voluntary. 'If we pull at the threads now, we are going to unravel some really hard-earned consensus,' said House co-chair Rep. Amy Roeder (D-Bangor), noting the years-long process that went into developing the program that was made law by the 131st Legislature. On several bills, some Republicans on the committee put forth a sizable amendment backed by a minority of lawmakers with a list of 10 recommendations to update the program at-large. It includes clarifications to the undue hardship provision, capping the cost of private plan applications and modifying return-to-work requirements, among other provisions. While some members, including some Republicans, were hopeful that LD 1712 brought by Rep. Tiffany Roberts (D-South Berwick) could be a compromise to address issues raised with the program, Democrats ultimately voted it down. The paid family and medical leave program will allow eligible public and private sector workers to take up to 12 weeks of paid leave for reasons such as illness, to care for a loved one or the birth of a new child. At the start of the year, Maine employers began withholding a portion of wages to pay into the program's fund. Employees are expected to be able to access the benefit starting May 2026. The committee voted 8-1 in favor of an amended version of LD 1221, which was introduced by Rep. Gary Drinkwater (R-Milford). While the legislation originally proposed a constitutional amendment prohibiting the Legislature from using the program funds for any other purpose, the amendment supported by most members instead directed the Department of Labor to determine ways to further protect the money and report back to the committee early next year. Luke Monahan, director of the paid family and medical leave program for the Department of Labor, told the committee that there is $75 million in the fund as of Wednesday. Additionally, he said more than 900 applications for employers to use private plans have been approved so far. The committee also backed the legislation brought by Senate President Mattie Daughtry (D-Cumberland), on behalf of the department. LD 894 wants to make a series of amendments to the current law to create certain enforcement mechanisms and penalties, as well as clarify intermittent leave. Though Daughtry urged her fellow lawmakers to give the program time to be fully implemented before making substantial reforms, she said the changes in her bill are coming from the people who have been working to implement this program that identified specific refinements to the policy. During the public hearing, Daughtry opposed every other bill except her own, but told the committee that if she were to support one, it would be LD 1221. Some of the bills before the committee were duplicative, including two seeking to repeal the program entirely. While all members voted to reject LD 539 for streamlining purposes, three Republicans on the committee voted in favor of one of the repeal bills, LD 406. Multiple bills were unanimously rejected by the committee, including LD 575, which wanted to remove the undue hardship clause and LD 1249, which sought to delay the payment of benefits. However, the committee voted along partisan lines on proposals to make the program voluntary (LD 1273), exempt agricultural workers from the program (LD 952), certain public school district employees (LD 1400), along with two measures seeking to issue refunds to employers who had approved private plans (LD 1169) and (LD 1307). SUPPORT: YOU MAKE OUR WORK POSSIBLE
