[SchoolFinance] Fwd: Updated Information on the Paid Family Medical Leave Act

Tue Mar 12 12:53:10 EDT 2024

Katie Gourley
RSU 25
Business Manager
207-469-7311
katie.gourley at rsu25.org <katie at rsu25.org>

---------- Forwarded message ---------
From: James Boothby <jim.boothby at rsu25.org>
Date: Mon, Mar 11, 2024 at 1:32 PM
Subject: Fwd: Updated Information on the Paid Family Medical Leave Act
To: Katie Gourley <katie at rsu25.org>

---------- Forwarded message ---------
From: MSSA <MSSA at msmaweb.com>
Date: Mon, Mar 11, 2024 at 12:25 PM
Subject: Updated Information on the Paid Family Medical Leave Act
To:

Maine School Superintendents Association

49 Community Drive

Augusta, ME  04330

(207) 622-3473

TO:            Superintendent, Assistant Superintendents and CTE Directors

FROM:      Patricia Hopkins, President

                  Eileen King, Executive Director

DATE:      March 11, 2024

RE:            Updated Information on the Paid Family Medical Leave Act

As many are aware, the Maine Department of Labor (MDOL) is in the process
of preparing implementing regulations for the recently enacted Paid Family
Medical Leave Act (Act). The final regulations are expected later this
Spring. In the meantime, the MDOL recently sent out a preliminary FAQ
document that answers some questions about the Act.  MSSA submitted a
question about the timing of being prepared to remit the employer and employee
shares of the 1% combined payroll tax as it aligns with your Collective
Bargaining Agreement.  In working with Drummond Woodsum, this is the
guidance we are sending out.

The law contemplates that employees and employers will contribute into a
fund that will be used to pay the leave benefits available under the Act.
The total combined contribution rate for larger employers is 1% of wages.
Employers are responsible for collecting both the employer and employee
portions of the combined 1% tax and remitting them to the fund. The Act
states that “an employer with 15 or more employees may deduct up to 50% of
the premium for an employee from that employees’ wages”. *Unless otherwise
agreed upon*, the Act provides that the employer and the employee will each
contribute 50% towards the 1% combined tax amount.

The Act further states that the rights and responsibilities under the Act
do not apply in situations in which a public employer is a party to a
collective bargaining agreement in existence on October 25, 2023, until the
existing collective bargaining agreement expires. We have been getting some
questions about this language and offer the following scenarios as guidance.

1. If the Collective Bargaining Agreement was ratified after 10/25/2023,
you should plan to raise 0.5% of your district’s wages for January
2025-June 2025 in your FY 2024-2025 budget and begin payroll withholding
for the employees’ 0.5% share on January 1, 2025.

2. If the Collective Bargaining Agreement is going to expire before January
1, 2025, you should plan to raise 0.5% of your district’s wages in your FY
2024-2025 budget and begin payroll withholding for the employees’ 0.5%
share on January 1, 2025.

3. If the Collective Bargaining Agreement was in place before 10/25/2023
and expires after January 1, 2025, districts will begin payroll withholding
of the employees’ 0.5% share and paying the district’s 0.5% share of the
tax upon the expiration of the CBA.

·           *For example:  If a contract **was executed prior to 10/25/2023
and is set to expire June 30, 2025, districts should be prepared to raise
the district’s 0.5% share of the tax for the quarterly tax for FY 2025-2026
as they re-negotiate the contract. Payroll withholding for the employees’
0.5% share of the tax will commence immediately upon contract expiration.
Please check the contract expiration date to determine which fiscal year
you will need to raise funds to pay the tax.*

4. For non-union employees, be prepared to pay the district’s 0.5% share of
the tax and to begin payroll withholding of the employees’ 0.5% share
commencing
on January 1, 2025.

5. For administrators without a collective bargaining agreement, be
prepared to pay the district’s 0.5% share of the tax and to begin payroll
withholding of the employees’ 0.5% share commencing on January 1, 2025.

It is strongly recommended that you very carefully assess each of the
collective
bargaining agreements by analyzing the dates for compliance. Many of you
have multiple collective bargaining agreements with different expiration
dates.

-- 
Jim Boothby, Superintendent
Regional School Unit 25
62 Mechanic Street
Bucksport, ME 04416

Phone 207-469-7311
Fax     207-469-6640

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-- 
CONFIDENTIALITY NOTICE:  This e-mail message, including any attachments, is 
intended solely for the individual(s) or entity to which it is addressed.  
It may contain confidential or proprietary information.  Unauthorized 
dissemination, distribution, copying, use, or other action(s) taken in 
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strictly prohibited.  If you have received this e-mail in error, please 
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