Maine’s law court on Tuesday found that businesses exempt from the state’s family and medical leave program would not receive a refund for payments already made into it.
At issue is whether businesses who offered their own family leave benefit and later qualified for an exemption should still have to pay startup costs for a new benefit that will be available sometime next spring.
The state began collecting payroll taxes this year, but Bath Iron Works and the Maine State Chamber of Commerce sued, arguing that businesses with qualifying private plans should not have to help fund the state program and should be refunded payments made into it during the first quarter of this year.
But in a 21-page analysis, the Maine Supreme Judicial Court said the state rule mandating the payments was constitutional and did not amount to a taking of private property, as the plaintiffs had argued.
The court’s findings do not end the lawsuit, but it’s unclear if BIW and the chamber will continue to pursue it.
This story appears through a media partnership with Maine Public.
