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MaineLD 706132nd Maine Legislature (2025-2026)HouseWALLET

An Act Regarding the Laws Relating to Unemployment Insurance

Sponsored By: Marshall Archer (Democratic)

Became Law

EMPLOYMENT SECURITYEMPLOYMENT SECURITY - UNEMPLOYMENT INSURANCE

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Bill Overview

Analyzed Economic Effects

14 provisions identified: 6 benefits, 3 costs, 5 mixed.

More help while in approved training

If your training is approved by the deputy, you keep eligibility even if you are not available or searching that week. Being in a degree program alone does not make it approved. Benefits paid while you are in approved training are charged to the General Fund, not to your employer. If you are a dislocated worker who used up your benefits within 30 months of starting approved training, you get extra weeks equal to your weekly benefit times your training weeks, up to 26 weeks, after other benefits are exhausted. People in approved training can qualify as dislocated workers under the law.

Tougher fraud penalties and collections

If you lie to get benefits, a first offense brings 6 to 12 months without benefits and a 50% penalty on the overpaid amount. A second offense brings 6 to 12 months and a 75% penalty. A third offense brings a 100% penalty and a longer disqualification set by the commissioner; fraud using stolen identity counts as a third offense. When money is recovered, 15% of each overpayment goes to the fund. Repayments apply first to penalties, then interest, then principal; offsets from future benefits apply only to principal. If the Department orders withholding, payors must withhold 10% of gross wages without cutting weekly pay below 40 times the hourly minimum wage and send it within 10 days.

New weekly rules to get unemployment

You must file a weekly claim, register for work, and actively look for a job unless you are in approved training or have a waiver. Being in a union hiring hall counts as looking for work. You must be able and available for your usual hours and commute. You are not denied just because you cannot mostly work midnight to 5 a.m. due to caregiving or lack of a personal care attendant. Good‑cause reasons include illness, caring for a sick relative, funerals, religious observances, and required military or civil duty. Suitable work must use similar skills and pay at least 80% of your average weekly wage. There is a one‑week waiting period before benefits start.

Emergency layoffs: faster access to benefits

During a declared state of emergency, if you are medically quarantined or temporarily laid off due to closures, you count as able and available while you stay in contact with your employer. The one‑week waiting period is waived if you are dislocated or temporarily laid off because of the emergency.

Noncitizen status rules for benefits

You can get benefits based on work you did only if, at that time, you were a lawful permanent resident, lawfully present to do the work, or permanently residing in the U.S. under color of law. The agency must use uniform data to check status. It can deny for lack of status only if it proves that by a preponderance of the evidence.

Who qualifies based on past wages

To open a benefit year, you must have wages of at least twice the annual average weekly wage in two different base‑period quarters. Your total base‑period wages must be at least six times that average weekly wage. If you do not qualify under the regular base period, the Department uses your last four completed calendar quarters instead. Payments for sickness, disability, or medical bills that start more than six months after your last month of work do not count as wages. To get benefits in a later benefit year, you must earn at least eight times your weekly benefit after the prior benefit year.

New rules for employee leasing taxes

During a leasing arrangement, the leasing company must pay unemployment taxes, penalties, and interest on leased workers and keep separate records and quarterly wage reports for each client. Until January 1, 2026, it files under its own account and rate. Starting January 1, 2026, contributions are reported and paid under the client company's account and rate, with separate records and reports kept by client. Pay to a client’s sole proprietor or partners is not covered.

Faster decisions and fair ID checks

If your employer does not send a separation report within 10 days, the deputy can decide your claim using available information. The Bureau cannot stop payments for identity checks unless it has credible evidence of fraud. If payments stop, it must notify you and give clear steps, timeframes, and multiple ways to submit ID. You now have 30 days to appeal a mailed redetermination, with one more 30‑day extension for good cause.

Filing across borders stays protected

You cannot be denied or have benefits cut just because you file in another state or an adjacent country that has a U.S. agreement, or because you live there when filing here. The state can reimburse another state, the Virgin Islands, or Canada under set rules when wages were moved, but that is agency‑to‑agency and does not cut your eligibility.

Keep benefits while on jury duty

You are not denied benefits just because you serve on a jury. If you earn jury pay in a week, your partial benefit equals your weekly benefit amount minus the jury earnings.

Short layoffs with recall still eligible

If your employer gives you a definite recall date, you can get benefits for up to six weeks before that date without weekly work‑search. You must stay able and available to work for that employer. More than six weeks needs Department of Labor approval.

Self-employment assistance program repealed

The law removes the self‑employment assistance program. This option for unemployed people to get support while starting a business is no longer available.

School staff and athletes: break rules

If you work for a school and have a contract or written reasonable assurance to return next term, you do not get benefits for weeks between terms or during school breaks. If you were denied under this rule but were not actually offered work next term, you get retroactive payment. If you are a seasonal athlete with written assurance to play next season, you do not get benefits for off‑season weeks.

Unemployment program administration updates

The Commissioner of Labor runs the unemployment program, can hire staff and make rules, and must alert leaders with recommendations to protect fund solvency. The old eligibility section is repealed and replaced by the new eligibility rules now in law. One paragraph in Section 1043 is repealed. Staff who access federal tax information must have a background investigation within the past five years.

Sponsors & Cosponsors

Sponsor

  • Marshall Archer

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. ACTPUB Chapter 235

    5/1/2026

  2. PASSED TO BE ENACTED, in concurrence.

    6/3/2025Senate

  3. PASSED TO BE ENACTED. Sent for concurrence. ORDERED SENT FORTHWITH.

    6/3/2025House

  4. Report READ and ACCEPTED, in concurrence.READ ONCE.Committee Amendment "A" (H-379) READ and ADOPTED, in concurrence.Under suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED BY Committee Amendment "A" (H-379), in concurrence.Ordered sent down forthwith.

    6/2/2025Senate

  5. CONSENT CALENDAR - FIRST DAYUnder suspension of the rules CONSENT CALENDAR - SECOND DAY.The Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment "A" (H-379).Sent for concurrence. ORDERED SENT FORTHWITH.

    6/2/2025House

  6. Carried over, in the same posture, to the next special or regular session of the 132nd Legislature, pursuant to Joint Order SP 519.

    3/21/2025House

  7. Received by the Clerk of the House on February 20, 2025.The Bill was REFERRED to the Committee on LABOR pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.

    2/20/2025House

Bill Text

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