Maine’s Supreme Judicial Court ruled that businesses which qualify for an exemption from the state’s new paid family and medical leave program are not permitted to receive a refund for the payments made during the first quarter of the year. The Paid Family and Medical Leave program, established in 2023, is expected to be fully funded and operational by May of 2026. It is funded by a 1% payroll tax, split equally between employers and employees. Companies with their own paid leave programs can opt out of paying for this state program, but only once approved by the Department of Labor. Bath Iron Works and the Maine State Chamber of Commerce had earlier sued the state on the grounds of unfair taxation. The court found these rules to be in line with the statute passed by the state and not to be an unconstitutional taking. The cases have been referred back to the Maine Superior Court for further action.

If you are an employer in Maine and need clarity on how to navigate these regulations or want more details on opting out of the state’s Paid Family and Medical Leave program, you may want to get a hold of Paid Family Leave. If you’re having trouble reaching them directly, eddcaller.com provides additional resources that can help guide you through the process and potentially see faster and more effective results.