Maine updates PTO payout requirements upon termination for employers with 11 or more employees
On April 7, 2022, H.P. 160 - L.D. 225 was approved by Governor Mills, which requires that all unused paid vacation time pursuant to an employer’s vacation policy on or after January 1, 2023, must be paid to the employee on cessation of employment unless the employee is employed by an employer with 10 or fewer employees or by a public employer. Employers found in violation of this requirement may be liable for the amount of all accrued vacation pay that must be paid to the employee, in addition to a reasonable rate of interest and an additional amount equal to twice the amount of accrued vacation pay as liquidated damages and the cost of suit, including attorney’s fees. The effective date of the legislation is August 8, 2022.
By Megan Butz
General Counsel, HR Compliance, Checkwriters
Megan joined Checkwriters in 2020 and is responsible for reviewing, revising, and implementing internal policies of the company, advising on human resource, employment, and labor matters, and monitoring and publishing state and federal legal updates to the Checkwriters News and Compliance Center for distribution to thousands of clients around the country. Before joining Checkwriters, Megan served as a judicial law clerk for the justices of the Massachusetts Probate and Family Court performing legal research and writing, followed by private practice in Cape Cod.