On July 1, 2025, Governor Janet Mills signed into law LD 55 amending Maine’s Earned Paid Leave statute which currently provides employees of businesses with more than 10 employees with the right to earn up to 40 hours of paid time off (“Earned Paid Leave”) each year and to take such time for virtually any reason. Under the current statute as implemented by the Maine Department of Labor’s regulations, to the extent an employee has unused Earned Paid Leave rolled over to the following year, the employer can limit accrual in that following year to a total of 40 hours. As an example, under current law, if an employee carried over 30 hours of unused Earned Paid Leave from 2024 to 2025, then the employee can only accrue an additional 10 hours during 2025.

Taking effect September 24, LD 55 amends the Earned Paid Leave statute and increases the 40 hour cap on the Earned Paid Leave accrual. Under the amended law, employees will be entitled to carry over unused Earned Paid Leave for one year and also accrue 40 hours of paid leave during that year. For example, an employee who carries over 30 hours of unused Earned Paid Leave from 2025 to 2026, will still be eligible to accrue an additional 40 hours of paid leave in 2026, thereby having access to 70 hours of Earned Paid Leave. In 2027, if the 30 hours of 2025 Earned Paid Leave have not been used, they do not carry over but instead are forfeited.  Under the same example, if the employee only uses 10 hours of Earned Paid Leave in 2026, then the employee will be able to carry over 40 hours to 2027 and have up to 80 hours of Earned Paid Leave available in 2027.

Some employers maintain Earned Paid Leave programs separate from their other paid time off programs. Other employers provide a consolidated time off program that includes the Earned Paid Leave mandated under Maine law. Irrespective of the approach an employer takes, employers with more than 10 employees should review their current leave carry over policies to ensure compliance with the new requirements and consider any necessary adjustments before LD 55 takes effect in September.

The Bennett Law Firm has decades of experience working with employers on their state and federal compliance obligations. Please contact a Bennett Law Firm attorney with any questions you have regarding your obligations under obligations under LD 55.