Cynthia Murphy, Senior Program Director, Workforce Solutions Cynthia.Murphy@ceimaine.org or 207.504.5436 To stay up-to-date on the evolution of paid leave, click here to subscribe to Seyfarth`s paid leave mailing list. Companies interested in Seyfarth`s surveys into paid sick leave or paid family leave should contact paidleave@seyfarth.com. Paid leave must be taken in increments of at least one hour, unless the employer agrees to a shorter period. In short, no. The law also prescribes certain other requirements, such as: the notice period you can require employees before taking accumulated paid leave, the circumstances under which you can reject a request for earned paid leave, the rate of pay, and what happens if an employee leaves your job with accumulated but unused paid leave. Coordination with Maine`s Earned Paid Leave Act. It is important to note that the amended law appears to be inconsistent with Maine`s Earned Paid Time Off Act (“MEPLOL”). The MEPLL, which came into effect on January 1, 2021, establishes a minimum standard for paid leave for state workers. The MEPLLL rules state that if an employer`s policy is to pay for unused paid leave earned on termination, it must also pay the MEPL upon termination. The MEPLL FAQ states: “If you currently have a leave policy stating that the unused balance of vacation time will be paid upon separation (and you do not have a separate policy for earned paid leave), you will be required to pay for unused leave and earned paid leave. If you have a vacation policy that states that the unused vacation credit will not be paid at the time of separation, the earned paid vacation credit does not need to be paid. “Therefore, it appears that the amended legislation is inconsistent with the MEPL`s current requirements regarding the treatment of earned and unused leave in the event of separation.
It is entirely possible that the amended legislation will change the way employers must process MEPL payments under their current policies. We hope that the Maine DOL will be published before Year 1. January 2023 will provide guidance on the relationship between the amended law and the MEPLL. We will continue to monitor and inform on all developments as we approach the effective date of the amended Bylaws. As the paid leave landscape continues to grow rapidly and become more complex, we encourage companies to contact their Seyfarth contact for solutions and recommendations on how to comply with paid leave requirements. An insured employee may include full-time, part-time or daily benefits. This includes students and non-citizens who are eligible to work in the United States. If an employee is an insured employee for unemployment insurance purposes, that employee counts towards the threshold of 10 employees and is covered by law. Employers should carefully consider whether any of their current policies (e.g., leave, sick leave or PTO policies, absence and late policies, etc.) should be amended to comply with the new legislation.
The law allows employers to reasonably limit the scheduling of paid leave due to undue hardship to the employer “as reasonably determined by the employer.” In general, all employees, regardless of job classification, are entitled under the new legislation. This includes employees who work full-time, as well as part-time, time-to-day and even daily allowances. Similarly, workers are entitled to earned paid leave, whether or not they are exempt for wage and hourly purposes. During paid leave, employers must pay employees their regular base salary, including bonuses and commissions. Employers can advance the 40 hours of leave to the beginning of a calendar year or an employee`s birthday. If an employer advances time and an employee terminates their employment before working enough hours to earn the time already taken, the employer can deduct the unearned leave from the last paycheque. Employers are not required to provide more than 40 hours of paid leave. Maine DOL has a helpful FAQ section on its website that deals with the paid vacation law. Maine`s new “earned paid leave” law (26 M.R.S. § 637) came into effect on January 1, 2021. The law requires some companies to grant their employees paid leave under various conditions.
Employees are entitled to 1 hour of paid leave earned per 40 hours worked, up to a maximum of 40 hours of paid leave per year. Employees accumulated this leave as of January 1, 2021. You can prevent new employees from using their accumulated time until they are employed by you for 120 calendar days. Employees will begin taking paid leave at the beginning of their employment and at the rate of one hour per 40 hours worked, up to a maximum of 40 hours of paid leave per year. You can take the leave after 120 days of employment. Employees on paid leave must receive the same benefits as other types of paid leave according to the employer`s “established” policies. The use of paid leave must not result in the loss of accrued benefits. Accrued but unused paid leave may be carried forward to the following year, but only up to the 40-hour limit. If the employer has an established policy or practice of paying vacation upon termination or termination, the same policy applies to paid vacation benefits. Maine`s new law and earned paid leave rules require employers* with more than 10 employees to provide earned paid leave that meets or exceeds the new law. By law, private employers with 10 or more employees in Maine must, for whatever reason, grant workers one hour of paid leave per 40 hours of work up to a maximum of 40 hours of paid leave per year. (See our article, Maine`s New Law Requires Employers to Provide Employees with Paid Time Off to Use for “Any Reason.”) Recently, Governor Janet Mills of Maine signed H.P.
160 – L.D. 225, “A Law on the Treatment of Vacation Time upon Termination of Employment,” which amends Maine`s Final Compensation Act to require payment of unused accumulated leave at the time of termination for Maine employees (the “Act”). This change makes Maine one of the few states to require payment for unused accumulated leave upon termination. Although the law goes into effect on July 19, 2022, Maine employers have until January 1, 2023 to comply with the requirements of the amended law. The new law establishes a basis for paid leave for employees. It`s not necessarily “extra” paid leave that you`re already offering. So if you`re already giving your employees paid time off that`s as generous (or more generous) than the requirements of the new law, you don`t have to give them an overtime 40 hours. However, you must ensure that the paid leave benefits you provide meet at least the minimum requirements of the new law. Jackson Lewis P.C.`s 950+ attorneys, located in major cities across the country, have focused on labor law since 1958, constantly identifying and responding to new ways in which labor law intersects with business. We help employers develop proactive strategies, strong policies and business-focused solutions to foster a highly functional, engaged, stable and diverse workforce, and share our clients` goals of emphasizing inclusion and respect for each employee`s contribution.
For more information, see www.jacksonlewis.com. The law does not apply to employees subject to a collective agreement (CBA) in the period between 1 January 2021 and the expiry of the contract. ACA News after 1. January 2021 will have to face the law. In the event of an emergency or sudden need, the employee must act in good faith to give notice appropriate in the circumstances. In other circumstances, employees are required to “give reasonable notice” of their intention to take leave. The Bureau compiled lists of frequently asked questions and responses to listening sessions on earned paid leave held in fall 2019, public comments on the proposed rules, public webinars in 2020, stakeholder meetings, and conversations among Maine Department of Labor staff. Frequently Asked Questions – General If your employer has a “no-fault attendance” policy or a “no-call/no-show” policy that provides automatic discipline for unexpected absences, these policies may be against the law if they prevent you from taking unplanned paid leave for an “emergency, illness or other sudden need.” Any business that employs more than 10 employees in the normal course of business for more than 120 days in a calendar year. Next steps. While employers have until January 1, 2023 to comply with the requirements of the amended legislation, they should take steps to comply with the requirements before the effective date, including: Employers must post the Bureau of Labor Standard`s “Employment Regulations” poster with a revision date of “09/20” below.