Maine business group criticizes latest paid family leave rules, saying 30 days’ notice is not enough

The Maine State Chamber of Commerce has taken aim at a proposed rule for the state Paid Family and Medical Leave program that would allow employees to give as little as 30 days’ notice before taking leave.

The business advocacy group said Monday that the Department of Labor’s proposed regulation does not comply with the law, which requires leave to be scheduled to “prevent undue hardship on the employer as reasonably determined by the employer.”

Businesses, particularly small operations that rely on a few workers to serve customers, will be thrown off-balance if workers take leave with just 30 days notice, the chamber said.

“Effectively, a business will not be able to claim an undue hardship if an individual requests leave 30 days prior to the scheduled time,” it said.

A spokeswoman said the Department of Labor is reviewing and considering comments that were submitted, and is required to adopt a final rule by Jan. 1.

The period for public comment ended Monday and is the last round of public comments. The agency said it has reviewed more than 1,000 comments submitted by nearly 300 people; the comments will be made public when the rule is approved.

The Maine State Chamber of Commerce has in the past criticized the paid family leave program’s proposed rules, and the Department of Labor responded with revisions to ease the burden on businesses, including regulations to opt out by offering private paid leave benefit plans.

The chamber said it appreciated the agency’s consideration of its comments. It also voiced other concerns.

Chamber CEO and President Patrick Woodcock said rulemaking for the family and medical leave program is “one of the most significant regulatory initiatives in a generation.” The Department of Labor “should follow the plain language of the legislative language and allow Maine businesses to make these decisions,” he said.

The Legislature last year approved a 12-week paid family leave benefit. Adopting technical rules is a key step in setting up the program in time to begin offering the benefit to Maine workers in 2026.

The chamber said 30 days’ notice would particularly hurt the more than 3,000 restaurants in Maine. Many owners expressed “dire concerns” over the limits imposed by the Department of Labor’s draft rules to claim undue hardship when an employee takes leave. For example, the chamber said, if the chef or dishwasher is out of work for 12 weeks during the summer, “the owner simply cannot operate the restaurant.”

Management cannot find a replacement on 30 days’ notice to work on a short-term basis without the security of continued employment, the business group said.

The law imposes a 1% payroll tax split evenly between workers and their employers to cover the costs of the state-run paid family leave benefit for workers who qualify. It would 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. The payroll tax would begin Jan. 1.

Copy the Story Link