Court Reaches Decision in 'Maine State Chamber of Commerce v. Department of Labor'

August 26, 2025

For Immediate Release: August 26, 2025

Court Reaches Decision in 'Maine State Chamber of Commerce v. Department of Labor'

AUGUSTA - The Maine Supreme Judicial Court has unanimously affirmed the legality and constitutionality of rules adopted by the Maine Department of Labor in administering the Paid Family and Medical Leave Act. The plaintiffs in the court case 'Maine State Chamber of Commerce et al. v. Department of Labor et al.' - https://www.courts.maine.gov/courts/sjc/opinions.html argued that the Department's rules conflicted with the Act and constituted a taking of private property for public use.

The case involved the requirement for all Maine employers to pay quarterly contributions to the Paid Family and Medical Leave Program for the first quarter of 2025. The Act and the Department's rules allow employers who offer optional private plans that provide substantially equivalent coverage for workers to be exempt from paying contributions to the Program. The Department's rules, which set the requirements and timelines for these private plans, have been upheld.

"I appreciate the court affirming that the Department's rule was a reasonable interpretation of the Act and was within our rulemaking authority granted by the Legislature," said Labor Commissioner Laura Fortman. "We will continue to focus on implementing the program in preparation for benefits going live in 2026."

Keep up with the latest information on Maine Paid Family and Medical Leave here: https://www.maine.gov/paidleave/ .