January 2023

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Maine requires payout of unused paid vacation effective Jan. 1, 2023

05/05/22

Author: ADP Admin/Tuesday, May 3, 2022/Categories: Compliance Corner , State Compliance Update, Maine

On April 7, 2022, Governor Mills of Maine signed into law H.P. 160, which requires employers to pay out all accrued, unused vacation at the time of separation.  This requirement becomes effective on Jan. 1, 2023.

The Details: 

Effective January 1, 2023, covered Maine employers must payout accrued unused vacation to employees at the time of separation. Maine law requires that an employee leaving employment must be paid in full no later than the employee's next established payday.

Note:   Employers with 10 or fewer employees and public employers are exempt from the requirement. In addition, if the employee’s employment is governed by a collective bargaining agreement that includes provisions addressing payment of vacation pay upon termination, the collective bargaining agreement supersedes the payout requirement.

Next Steps:

Maine employers should review their policies and practices to help ensure compliance with H.P. 160.

Have Questions?

Please contact your dedicated service professional with any questions.  

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Tags: 05/05/22

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