On July 1, 2025, Maine Governor Janet Mills signed LD 55 into law, introducing a key amendment to the state’s Earned Paid Leave (EPL) law. Effective September 24, 2025, the change enhances leave accrual by allowing employees to retain unused time from the prior year without reducing future accruals.
Key Change to Accrual and Carryover
Under the current EPL law, employees may carry forward up to 40 hours of unused earned paid leave to the following year. However, this carryover amount has historically reduced the amount of leave an employee could accrue in the new year.
Under the amended law, carried over leave will no longer count against the following year’s accrual limit. This means employees may now accrue up to 40 hours of EPL annually, regardless of any unused hours from the prior year, allowing for a potential balance of more than 40 hours at any point in time.
Next Steps for Employers
To ensure compliance with this updated EPL requirement, Maine employers should:
- Update Policies: Revise employee handbooks and written policies and procedures to reflect the new accrual rules and ensure clarity around carryover and maximum accruals.
- Review Payroll and Leave Tracking Systems: Confirm that systems are updated to allow full annual accruals even when employees carry over time from the prior year.
- Communication Changes to Employees: Notify employees of the policy update and explain how their leave accruals and balances may be affected.
- Train Human Resources and Supervisory Staff: Ensure those responsible for administering EPL understand the new requirements and how they impact existing procedures.
- Monitor for Additional Guidance: The Maine Department of Labor (DOL) may issue additional guidance to support implementation. Employers should monitor the DOL’s website for updates as the effective date approaches.
