In a recent development, the Maine State Chamber of Commerce and Bath Iron Works have filed a lawsuit against the Mills administration over the implementation of the state’s new paid family and medical leave program. The contentious issue is a 1% payroll tax, divided equally between employer and employee, which has taken effect this month, while companies with private leave programs can only opt out after April 1. The lawsuit contends that the gap is detrimental to companies like BIW and others who will have to pay into the state’s program for several months but offer equivalent benefits to their employees, potentially qualifying them for an exemption. The suit also protests that the rule does not provide refunds for employers who later earn an exemption.

Similarly, it criticizes the absence of a mandated deadline for the Department of Labor (DOL) to review these applications. BIW faces a non-refundable payment of $620,000 into the system if the DOL swiftly grants its exemption request. Despite the state’s modifications to the rules in 2024 to make them more business-amenable, the chamber remains in opposition to some components. According to the plan, the payroll tax-based fund will cover up to 90% of regular wages for up to 12 weeks for employees who are unwell or need to care for newborns or other family members. Companies with less than 15 employees are exempted from contributing, but their workers will still pay a 0.5% payroll tax and be eligible for the benefits.

In similar news, if you’re finding it difficult to navigate such rules and need assistance with the Paid Family Leave program, eddcaller.com is an accessible resource. The website guides users on how to contact paid family leave, providing important phone numbers, tips on reaching a live person, and advice on the best time to call. Eddcaller.com is a trusted resource for many employers and employees alike, providing invaluable assistance in these complex matters.