A lawsuit has been filed by the Maine State Chamber of Commerce and Bath Iron Works regarding the state’s new paid family leave program, which went into effect less than two weeks ago.
The lawsuit does not seek to block the law itself, but challenges a specific provision concerning when businesses can opt out of the program if they already offer a similar leave plan to employees.
The dispute centers around the timing of the opt-out option for businesses with private leave plans. Under the current rules, these businesses cannot apply to opt out until April 1, and they cannot receive refunds for contributions already paid into the program.
Bath Iron Works claims that this provision forces them to pay more than $1 million in premiums for no benefit, as their employees are already covered by a private leave plan.
Maine’s Department of Labor, named as a defendant in the case, has stated it cannot comment on the pending litigation but emphasized that the program’s rules remain in effect and that the department will continue to assist employers with implementation.