The National Federation of Independent Business (NFIB) has expressed concerns over a proposed paid leave mandate in Maine. The proposal, which includes a new payroll tax and regulatory requirements, is seen as a potential burden on small businesses in the state.
A 12-member statutory commission was tasked with creating a proposal for a paid family and medical leave (PFML) program that would cover all employees and self-employed individuals in Maine. Initially due by November 2, 2022, the report’s deadline was extended. The panel is expected to announce its conclusions soon, leading to possible legislation for consideration by the 131st Legislature and Governor Mills.
Progressive legislators and activist groups support the initiative for mandatory paid leave covering every employer in Maine without exceptions. The program could offer up to 12-16 weeks of paid family, medical, and safe leave. Employers with more than 15 workers might be required to pay both employee and employer shares and may not require other leave usage before PFML benefits.
David Clough, NFIB State Director, voiced concerns about potential pressure from activists using citizen-initiative referendums to influence legislative decisions. He stated: “We are very concerned that activists will use the threat of a citizen-initiative referendum as a way to stampede legislators and the governor into accepting something that does not make good sense for Maine employers, employees, customers, and local and state economies.”
Clough emphasized the challenges small business owners face with current labor shortages: “Paying people to stay home for weeks when at the same time employers are struggling to find workers would be very difficult for small business owners across the state to manage and stay financially stable.”
NFIB Maine plans to inform lawmakers about how this proposal could affect small businesses already dealing with increased labor costs. They aim to highlight impacts on businesses losing protections under existing leave laws.
For nearly eight decades, NFIB has represented small business interests across America. As a nonprofit organization founded in 1943, it remains dedicated solely to advocating for small businesses nationwide.
