Maine’s highest court agreed Tuesday that the Department of Labor can order businesses to pay into a statewide paid family and medical leave program, after Bath Iron Works and the state Chamber of Commerce sued the department earlier this year.

Maine’s statewide Paid Family and Medical Leave program was established in 2023, and labor officials expect the fund to be fully operational by next May. Under rules the state established last year , Maine employers are charged a regular, nonrefundable premium that’s used to fund the program.

Bath Iron Works sued the state in January , claiming the state was unfairly taxing the company to help build to help fund the paid leave program. BIW said it has its own paid leave program for employees.

Employers with their own plans are allowed to op

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