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Maine paid family and medical leave: Lewiston budgets employer share as payroll contributions begin
Summary
City staff explained how the new Maine paid family and medical leave program affects the budget: payroll contributions began Jan. 1, 2025, and Lewiston is budgeting its employer share for the full fiscal year.
Councilors asked how the state’s new paid family and medical leave program will affect the city’s budget. Administrator O'Malley explained that payroll contributions began Jan. 1, 2025, and described how the city budgeted the employer portion for the coming fiscal year.
Administrator O'Malley said that both employer and employee pay a 0.5% payroll contribution and that the state-run program will administer benefit payments. "The employer and the employee pay a half percent," O'Malley said. Beginning in 2026 eligible workers will be able to take up to 12 weeks of covered leave; staff said the city is budgeting the employer half-percent for the full fiscal year at approximately $138,636.
Staff noted that employees may not be able to "double dip" with city-provided sick or vacation pay and that the state will offset benefits accordingly. The city’s budgeting covers the employer contribution whether or not an employee chooses to use the state benefit; the council asked follow-up questions about administration and payroll contribution timing.
Ending: Staff said they will monitor program implementation and return with any administrative clarifications as employees begin to access the state program.
