The Maine Supreme Judicial Court has shot down a lawsuit over the state’s new family and medical leave program.
Bath Iron Works and the Maine State Chamber of Commerce claimed businesses with their own private plans should not have to pay into the state system and should be refunded for payments made in the first quarter of this year.
The Supreme Court decision released Tuesday said the state’s rules over the new leave program are reasonable and do not break any laws.
“We conclude that the rules do not conflict with the Act,” the ruling stated. ” The
Department’s rules reasonably implement the PFML program and the
exemption for private substitute plans. Accordingly, the Department did not
exceed its statutory authority.”
The court also said the leave program rules do not break the Maine or U.S. Constitution, as BIW and the Chamber had argued.
The case will now be sent back to a lower court, although it’s unclear if BIW and the chamber will continue to pursue it.