Intro to Maine Labor Laws

Maine has enacted LD 61(opens in a new tab), establishing new restrictions on employer surveillance and mandatory notice requirements. The law applies to all Maine employers, regardless of size, and broadly regulates electronic monitoring of employees and certain contract workers. The law establishes a three-tiered notice system: at the interview stage, pre-implementation, and via annual certification. Importantly, Maine now grants employees the right to refuse the installation of tracking or data-collection software on personal devices, effectively requiring employers to provide company hardware if monitoring is required.

Employers that use permissible surveillance must notify applicants during the interview process and provide written notice to employees at least annually. Violations may result in civil penalties.

Employers should review current monitoring practices, update policies and onboarding materials, and implement required notice procedures ahead of the effective date.

Maine’s Earned Paid Leave (EPL) rules were recently updated to clarify accrual and carryover limits. Under the revised law, employees must be allowed to carry over up to 40 unused hours from the prior year without affecting their current year’s accrual—allowing a potential maximum balance of 80 hours. While the law requires carryover, employers may implement a usage cap of 40 hours per year. Maine employers are advised to review and update their EPL policies, systems, and employee communications to ensure compliance with the new rules.

Maine requires employers with 5 or more employees to enroll their “covered” employees in the Maine Retirement Investment Trust(opens in a new tab) (MERIT) or an equivalent employer-sponsored retirement plan. MERIT is a state-sponsored Roth IRA funded through payroll deductions, starting at 5% and increasing to 10%. Employers with 15 or more covered employees had to certify their exemption or enroll in the program by April 30, 2024; employers with 5 to 14 covered employees had to do the same by June 30, 2024. 

Companies with existing qualified retirement plans are exempt, but must certify their exemption with the state. Penalties for non-compliance will not begin until 2025.

A new Maine law, effective September 24, 2025, requires most employers with 10 or more employees to provide "show-up pay" to employees whose scheduled shifts are canceled or reduced. The law mandates that if an employee reports for a shift that is then canceled or shortened, they must be paid for at least two hours at their regular rate. This applies unless there is an exception, such as a natural disaster or an employee's illness. Employers should update their policies to comply with the new law and review their procedures for notifying employees of schedule changes.

As reported previously, beginning January 1, 2025, employer and employee payroll tax contributions to the Maine Paid Family and Medical Leave program will commence. Payroll contribution rates may vary based on employer size. Benefits will be available to eligible employees on May 1, 2026. Justworks PEO customers who are liable will see these contributions automatically deducted from their invoices and employee paystubs starting in the new year.

Maine passed a new paid family and medical leave law that will provide eligible employees with up to 12 weeks of family and medical leave benefits per year. This paid family and medical leave program will require all private employers to provide employees with leave, with paid benefits funded through employer and employee payroll tax contributions. Reporting requirements and payment of premiums will begin January 1, 2025, and employees will be able to utilize benefits through the program beginning May 1, 2026.

Employees will be entitled to job protection and continuation of health insurance coverage while on paid family medical leave. The paid leave benefits will be calculated based on an employee’s and the state’s average weekly wage amount, up to a designated weekly cap, and paid directly by the state. Employers should stay tuned for more guidance and updates from the state about plan administration on this new program.