Paid Leave Legislative Activity

On July 11, 2023, Maine Governor Janet Mills signed into law a budget that will establish a paid family and medical leave program in the state. Employees will be able to begin taking leave and receiving benefits on May 1, 2026 (subject to a potential short delay based on an actuarial study). Employees and employers will begin contributing to the state plan on January 1, 2025. 

Nearly all employees in Maine, including both private and public sector workers, will be covered. Job protection will apply to employees who have worked for their employer at least 120 days prior to their leave. The law provides up to 12 weeks of paid time off for an employee’s own medical condition, family leave (care of family member and bonding), safe leave and military exigency. Benefits are calculated as 90% of the portion of an employee’s wages that is less than or equal to 50% of the state average weekly wage plus 66% of the portion of wages exceeding 50% of the state average weekly wage. Benefits will be capped at 100% of the state average weekly wage. Employers will have the option to participate in the state plan or opt out of the state plan and provide benefits under comparable private plans. 

Colorado’s average weekly wage will be increasing in July 2023. That means that when paid leave benefit payments become available in January 2024, those payments will be based on the new State average. The State’s new average weekly wage will increase to $1,421.16 starting July 1, 2023, an increase of more than $70 from the current average. 

While payments will be based on a higher average in 2024, there will be no change to premiums. Premiums will remain at 0.9% of wages, and employers will still only be allowed to deduct up to 0.45% of that from workers.

Paid Medical and Family Leave (bill HF 2) was signed into law by Governor Tim Walz on May 25th, 2023.

• Contributions begin January 1, 2026.
• Benefits go into effect January 1, 2026.

Because it will take some time to set up the program and for premiums to collect enough to cover benefits, Governor Walz and the DFL legislative leaders agreed to draw $668 million from MN’s surplus budget to front-load the program. Premiums will start being collected, and benefits will start being paid, on January 1, 2026.

• Private plans (fully insured or self-funded) that exceed the benefits of the state plan permitted.
• 12 weeks paid leave for employee’s own serious health condition, including pregnancy, care for a family member, including bonding with a new child, related to a family member’s military deployment and instances of domestic abuse of sexual assault. 20 week cap for medical and family leave combined.
• Replacement wages would range from 55% to 90%.
• Funded by 0.7% payroll tax. Employers could charge 50% of the expense to employees. The rate could go up but not until January 2027 and not above a maximum of 1.2 percent.
• Job protected leave and retaliation prohibited.