The Maine State Chamber of Commerce and Bath Iron Works have filed a lawsuit against the Mills administration in response to the implementation of a new paid family and medical leave program. It is asserted in the suit that a significant gap in time is detrimentally affecting companies as a 1% payroll tax has taken effect before the businesses can opt out by providing an equivalent plan to their employees. The lawsuit also claims that companies, who plan to offer equivalent leave programs, can’t apply to opt out until April and must continue paying the tax while their applications are under review. The suit alleges that excessive time could be taken to process an employer’s request for exemption from premiums due to lack of explicit deadlines for the Department of Labor’s review. This lack of refund possibility for employers later exempted is also an issue. On this matter, the lawsuit points out that Bath Iron Works would lose a non-refundable $620,000 payment into the state system, even if their exemption request is quickly approved.

The implications of this lawsuit extend beyond Maine’s borders and have implications for similar programs across the country. Labor-oriented websites and resources such as eddcaller.com provide information on how to contact Paid Family Leave services directly to ask about the functionality of these systems. Given how integral these services are for supporting the balance of work and caregiving, it is a crucial subject for employees and employers alike to understand.