Workers in Maine will get paid family and medical leave starting in 2026

Beginning in 2026, the majority of employees in Maine will be entitled to a maximum of 12 weeks of compensated leave for family and medical needs, a provision included in a supplementary budget signed by Governor Janet Mills of the Democratic Party.

The approved financial plan allocates $25 million to initiate the state-administered program that, come 2026, grants workers paid leave for health-related issues, family caregiving, or the occasion of welcoming a new child.

Maine now aligns with an ensemble of twelve other states that have implemented paid leave programs for family and medical reasons, spotlighting state legislative efforts following the inability to advance such measures at the federal level.

This initiative has garnered commendation from the White House, with press secretary Karine Jean-Pierre recognizing Maine’s legislative step. She highlighted that such leave policies bolster the welfare of working families and fortify both the workforce and the economy. She acknowledged the Biden administration’s endeavors to position the federal government as a paragon in this respect, assisting federal employees in availing necessary leave.

Governor Mills shared her intimate connection with the necessity of such a program, citing her experiences with personal loss, single parenthood, and elderly care amidst her professional commitments.

The Democratic-majority Legislature had already sanctioned a budget exceeding $9.9 billion for essential services effective from July, a measure passed in March along party lines to avert potential partisan standoffs that could lead to a government shutdown.

The supplementary budget, amounting to approximately $445 million for additional expenditures, is projected to be activated towards the end of October due to its failure to secure an immediate-effect two-thirds legislative majority.

This additional budget outlines the initiation of the paid leave policy, to be financed via a payroll levy shared by employees and employers, with a 1% cap on wages. Eligible scenarios for the leave include childbirth or adoption, serious health conditions, familial caregiving, or military service reintegration.

Exemptions apply to small businesses with under 15 workers in terms of employer contributions. Businesses offering equivalent benefits may maintain their existing schemes.

The budget received support partly due to tax initiatives, such as the increase in the state income tax exemption for pension income, and included provisions to enhance childcare workers’ remuneration and to fund the governor’s suggested Dirigo Business Tax Incentive Plan, set to supersede the Pine Tree Development Zones.

Governor Mills, initially hesitant due to opposition from the Maine State Chamber of Commerce among others, consented to the paid leave measure after adjustments were made.

State Senator Mattie Daughtry of Brunswick expressed elation following the legislative victory, which included a commendatory interaction with the White House and her presence at the bill’s signing, which she co-sponsored with Representative Kristen Cloutier of Lewiston.

Combining the main and supplementary budgets, the state’s spending reaches unprecedented levels, approximately $10.3 billion, yet remains balanced with the state’s emergency fund at peak levels, according to Kirsten Figueroa, the commissioner of the Department of Administrative and Financial Services.

Zeke Miller of Big Big News, based in Washington, D.C., contributed to this article.

Frequently Asked Questions (FAQs) about Maine Paid Family Leave

More about Maine Paid Family Leave

• Maine Paid Leave Legislation
• Governor Janet Mills’ Office Announcement
• White House Statement on Paid Leave
• Overview of Paid Family and Medical Leave Policies
• Maine State Chamber of Commerce Position on Paid Leave
• Details on Maine’s Supplementary Budget