Earned paid leave on the horizon for Maine employers

Beginning January 1, 2021, most Maine employers must offer at least 40 hours of earned paid leave (EPL) to their employees. Although this may sound simple, you should be careful to read the fine print—there are some tricky issues to which you must pay close attention.

Basics

Maine’s EPL law applies to employers with more than 10 employees on staff for more than 120 days in a calendar year. Eligible employers must provide 40 hours of paid time off (PTO) per year to their employees, which may be front-loaded or accrue at one hour per 40 hours worked.

You may impose a 120-day waiting period before new employees can use EPL. Employees may use the leave for any reason and cannot be retaliated against for taking paid leave.

What if we already provide PTO?

Don’t assume that if you offer a generous leave policy, you’re in compliance with the new law. The Maine Department of Labor (MDOL) states employers with existing leave policies must nonetheless provide 40 hours of leave with the same “characteristics” as EPL.

For example, you must:

• Allow employees to use up to 40 hours of paid leave for any reason;
• Allow them to take paid leave in the event of an emergency, illness, or sudden necessity with as much notice as feasible; and
• Provide pay at the same base rate they earned in the week before taking leave.

EPL is fairly nuanced and detailed, so you would be wise to review your leave policies with counsel.

Are all of our employees eligible?