An Act to Establish a Monetary Penalty for Employers Whose Unemployment Payment Is Returned Unpaid
Summary
LD 2101 amends Maine’s Employment Security Law to create a monetary penalty when an employer’s unemployment-related payment is returned unpaid. The bill directs the Commissioner of Labor to assess a penalty of $25 or 1% of the payment amount, whichever is greater, when a payment is returned for reasons such as insufficient funds, a closed account, a nonexistent account, a stop-payment order, or any other cause.
The measure also includes an appropriations and allocations section for the Department of Labor’s Employment Security Services account, providing funding to cover bank fees associated with returned payments. The bill was enacted as Public Law chapter 615 and approved by the Governor on April 3, 2026.
Impact
The bill adds a new penalty provision to 26 MRSA §1225, expanding the Department of Labor’s authority to impose financial consequences on employers whose unemployment payments are not honored by the bank. It also creates a small Other Special Revenue Funds allocation to offset bank fees tied to returned payments under the Employment Security Law, affecting the Department of Labor’s administrative finances and employers who submit unpaid payments.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or opposition in the supplied materials. Based on the bill’s narrow administrative focus and its enactment into law, the available record suggests the measure was treated as a routine enforcement and fee-recovery change rather than a controversial policy proposal.
Contention
The bill’s only apparent point of contention would be the new penalty imposed on employers for returned payments, which could be viewed as a compliance enforcement tool by supporters and as an added cost or administrative burden by affected employers. However, the provided materials do not identify any specific objections, amendments, or named stakeholders opposing the measure.
A bill for an act relating to wage payment collection issues arising between employers and employees, providing penalties and remedies, and including effective date provisions.
A bill for an act relating to wage payment collection issues arising between employers and employees, providing penalties and remedies, and including effective date provisions.
Penalties for employees and officials for failure to stop fraudulent payments increased, and responsibilities for employees and officials to stop fraudulent payments enhanced.
Payment of preliminary monetary damages to certain exonerated individuals authorized, exoneration compensation account in the special revenue fund established, and money appropriated.