A program providing paid family and medical leave (PFML) to Maine-based workers has been upheld by the state’s Supreme Court. Bath Iron Works, a Navy ship manufacturer based in Bath, Maine, along with the Maine State Chamber of Commerce, sued the state’s Department of Labor (MDOL) in January. The Maine Supreme Court sided with the Department of Labor in an Aug. 26 opinion, allowing the rules for implementing the state’s PFML program to stand. The plaintiffs argued Bath Iron Works shouldn’t be subject to mandatory quarterly taxes that started in January to fund the program, as it intends to offer a private leave program in lieu of the state-funded one. While the law establishing PFML says that employers with private plans approved by the state may be exempt from this tax, the MDOL didn’t start reviewing such plans until April. This means that in the interim, Bath Iron Works is still required to pay into the state’s PFML program. The plaintiffs also argued the rules for implementing the state-sponsored program constitute “a taking of private property for public use” under Maine’s constitution. The Maine Supreme Court disagreed with both of these arguments. For more on what the ruling means for HR pros, keep reading here.—CV |