Navigating Maine Paid Family and Medical Leave: Private plan application window opened April 1

With Paid Family and Medical Leave (PFML) launching in Maine soon, employers will be required to make an important decision: participate in the state program or opt for a private plan.

Understanding the difference between the two options, the timelines associated, and how these programs can coordinate with disability offerings can help employers make an informed decision to best support their employees and their business.

Things to understand:

• State program: Employers who intend to stay with the state program will need to provide quarterly wage reports and remit quarterly premium to the state as directed. The first wage report and premium remittance are due April 30. 

• Application window: Employers who wish to use a private plan must apply to the Maine PFML Program for approval of a private plan substitution. The private plan application window will open on April 1, 2025 and will be available on a rolling basis. 

• Employers that have multiple entities (e.g., affiliates, associated companies) with unique FEINs (Federal Employer Identification Numbers) will be required to submit separate applications for each FEIN. Each separate application will require a $250 application fee. Upon approval, an additional $250 fee will be required per application.  

• Duration of private plan: If employers choose to use a private plan for ME PFML, they must stay in a private plan for three years.  

• Effective date of exemption from making state premium: This depends on when the application is submitted and approved. Employers are exempt from the obligation to remit state premium on the first day of the quarter in which the private plan substitution is approved. If, however, the private plan application is submitted less than 30 days prior to the end of a quarter, the exemption is effective on the first day of the quarter following when the application was submitted, assuming it is approved. Here’s an example of how this would work with some potential private plan approval dates:

*Important note: Employers are responsible for premium contribution and reporting obligations to the State Fund while their application is pending.

• Handling already withheld contributions: If an exemption is granted, employers should consult with the Maine Department of Labor for guidance on whether these contributions can be refunded or reallocated. See the above table for some examples.  

• Employer obligations: Employers with approved private plans have obligations, including but not limited to, continuing to submit quarterly wage reports to the Maine Department of Labor.  

• Reminder: Regardless of which plan employers choose, all Maine employers must submit wage reports and remit premiums to Maine for Q1 2025. 

Why consider a private plan with Guardian?

PFML laws can be complicated. With Guardian's experience in administration, seamless claims management, and commitment to customer satisfaction, you can help provide a better leave experience to your employees — while gaining confidence for your business.

Employers can count on: 

• Dedicated support from our trusted specialists when filing your private plan exemption with the state.

• Integration assistance with your short-term disability insurance, helping to provide comprehensive coverage for your employees.

• Compliance simplified with regular updates on new and changing regulations and ongoing guidance to help keep you compliant. 

Employees can count on: 

• A simplified claims process.

• A single point of contact.

• Experience that matters.

Seamless coordination with short-term disability (STD)

When PFML and STD benefits are provided by the same insurance company, both employers and employees benefit from a more comprehensive offering and a streamlined experience. Some advantages can include: 

• Simplified claims process: Employees can work with their single case manager for all aspects of their leave, reducing complexity and confusion. 

• Additional leave time available: ME PFML provides leave coverage for up to 12 weeks per year. STD insurance can provide coverage for up to 26 weeks per qualifying event (which can happen more than once per year). 

• Higher wage replacement: State-mandated PFML benefits have a weekly maximum, which may not fully meet an employee’s income replacement needs. When PFML and STD work together, STD helps supplement PFML to provide more financial protection. And when both benefits are coordinated through one insurance company, the coordinated administration can help to prevent coverage gaps. 

• Additional features of STD with Guardian: With powerful clinical resources and wellness solutions like caregiving support services available within STD insurance,¹ your employees can rely on their benefits. Not only during a leave, but they can also utilize their STD benefits to potentially help prevent a leave in the first place.  

To explore your private plan options for ME PFML, contact your broker or Guardian representative today. State Resources:²  

• MDOL: Paid Family and Medical Leave 

• Fully Insured Employer Guide 

• FAQ