Maine recently enacted one of the broadest and most generous paid family and medical leave programs in the country. L.D. 1964 provides up to 12 weeks of paid leave per year to all eligible employees in the private and public sector.
The plan permits employees to take leave to care for any individual with whom they have "a significant personal bond that is or is like a family relationship regardless of biological or legal relationship." Employees can take paid leave immediately after starting employment.
To pay for this new program, the state will impose a 1% payroll tax, split evenly between the employer and employee. Maine will begin assessing the 1% payroll tax on Jan. 1, 2025. Employees will be able to start taking paid family and medical leave on Jan. 1, 2026.
Wage Replacement
During the leave, the program will replace 90 percent of an employee's wages for income earned that is equal to or less than 50 percent of Maine's average weekly wage, which is currently $1,036. The portion of the covered individual's average weekly wage that is more than 50 percent of the state average weekly wage must be replaced at a rate of 66 percent up to the maximum weekly benefit. To calculate the benefit amount, the average weekly wages the individual earned over the preceding four calendar quarters will be used, but any earnings from bonuses will be excluded. The maximum weekly benefit is set at the state average weekly wage, which changes annually. Notably, benefits are not subject to...
Read Full Story:
https://news.google.com/rss/articles/CBMib2h0dHBzOi8vd3d3LnNocm0ub3JnL3Jlc291...