The primary legislative issue for the business community this session relates to the issue of paid family medical leave. Last week, the Labor Committee finally held a hearing on LD 1964, An Act to Implement the Recommendations of the Commission to Develop a Paid Family and Medical Leave Benefits Program. The Commission Report was released in December of 2022, but the legislation has been in the Revisors Office for the last five months before finally being printed on May 18, 2023.
The Retail Lumber Dealers Association of Maine testified in opposition to this legislation, along with a long list of other business trade associations. Along with concerns over the cost of the payroll tax proposed in the bill and the implications for businesses already burdened by a tight labor market, the fact that this legislation was printed so late in the legislative session was an additional issue of concern raised by the RLDAM.
The issue is complicated further by the fact that the Maine Peoples Alliance and the Maine Women’s Lobby have gathered a sufficient number of signatures to put a citizens-initiated referendum issue on the ballot next year and are using that threat to force the legislature to act on the issue this session.
Yesterday, the Labor Committee voted out LD 1964 on a straight party line vote after making some amendments to the bill to try to respond to concerns raised by the Mills Administration during last week’s hearing. The amendments do not respond to the major concerns raised by the business community, which had coalesced around an option more in line with the current law regarding unpaid leave.
Given the make-up of the House and Senate, it is highly likely that this legislation will be enacted and sent to Governor Mills, who has expressed concerns with the potential cost of the legislation. It is not yet clear whether the last-minute amendments adopted at yesterday’s work session will go far enough to ally the Governor’s concerns. The business community will continue to lobby against the bill as an unsustainable payroll tax which businesses cannot afford.