Paid family and medical leave changes would hurt Maine businesses and employees

To the Editor;

In 2023, the Legislature enacted the Maine Paid Family and Medical Leave program in the state’s biennial budget. For most employers and employees, this program is funded through a 1-percent wage contribution rate, with 0.5% deducted from employees’ wages and the other 0.5% percent paid by the employer.

Under the program, employers may opt in to an approved private insurance plan or they may self-insure if they believe those options are more prudent.

In an effort to make the program more affordable, many businesses that elected to self-insure have opted to pool the risk, financial resources and administration of their self-insured program.

Pooling is a long-standing and responsible business practice, particularly for small and midsized employers. It allows businesses to spread risk, stabilize costs and access professional administration otherwise out of reach. Essentially, pooling enables small businesses to comply with the complicated and expensive PFML requirements.

Now, seemingly for no reason other than to force employers to choose the public plan, legislation has been introduced to prohibit pooling in self-insurance PFML programs. Many Maine businesses and trade associations testified against this bill, which would apply retroactively and affect those who have made significant investments in setting up their self-insurance programs.

Maine businesses are already struggling to keep up with our state’s high costs of doing business. If legislators in Augusta are concerned about PFML program compliance, they should set clear standards, not pull the rug out from under businesses making good-faith efforts to comply with the rules.

Sen. Stacey Guerin
R-Glenburn