Maine is unique, both with our overall demographics and with our high number of small businesses and self-employed entrepreneurs. I’ve spent my career working with entrepreneurs, helping them hone their interests and passions into business plans, gain financial literacy and launch successful businesses. Anyone who runs their own business will share with you the joy and independence it brings — but also the challenges that come with doing it all yourself. That means many small business owners and entrepreneurs simply can’t offer their workers the same benefits that larger companies can.
Recent studies and conversations around today’s changing labor market tell us that when young people are considering where to settle down or what career to pursue, their view is very holistic. Today’s workers aren’t just looking for a good paycheck, because money alone can’t buy happiness. Overall, they want a fulfilling career that allows them the freedom and support they need to raise a family and care for aging parents. Maine has a growing population of this “sandwich” generation, people who are balancing work with the need to care for young children as well as elderly parents. They need and deserve programs that help them care for their families and plan for their own futures.
Thankfully, real progress is being made in Augusta. We know that small businesses are the cornerstone of Maine’s economy, and we need to do all we can to help them compete in the modern market. That’s why I was proud to finally get the Maine Retirement Savings Plan passed into law in 2021. This is a program I’ve been working on for my entire time in the Legislature. In Maine, 46% of private sector workers don’t have access to an employer-sponsored retirement savings plan. At the same time, I’ve heard from many small-business owners who say they would love to offer a retirement savings plan to their workers, but they simply don’t have the money to do so.
Under this new law, workers who choose to participate in a state-sponsored program would have a certain amount of their paycheck put into a Roth IRA account, the same way other workers contribute to employer-run retirement accounts. What’s more, employers won’t contribute any money to these savings, meaning there’s no undue financial burden on small businesses. I was dedicated to ensuring this program works for both employees and their employers. I’ve submitted another bill this year to update the launch date for this program to ensure that it’s in the best shape possible — and incredibly easy for employees to sign up for and for employers to manage.
Young families also want to know they’ll be able to take time off to bond with their newborns or adopted children. Just this month, the bipartisan Commission to Develop a Paid Family and Medical Leave Benefits Program released its final report, making recommendations for what a paid family and medical leave policy should look like for Maine. Every member on the commission was dedicated to creating a plan that is by Mainers, for Mainers — that’s good for families, workers and businesses of all sizes. Under the proposal, workers who don’t yet have access to paid family and medical leave, including those who are self-employed, can get it. Additionally, businesses that already offer paid family and medical leave to their workers won’t have to change their plans. This will be a boon for workers and an equalizer for Maine businesses, to help them attract and retain quality workers.
The recommendations from the commission’s report will soon be put into a bill and sent through the legislative process, giving Mainers even more say in how this plan should be crafted. Be on the lookout for more news about that, including the public hearing for the bill. The public hearing will be an opportunity for you to share your comments and thoughts before the Labor and Housing Committee.
When we help Maine’s small businesses attract and keep quality employees, we invest in our economy and our future. So many young Mainers truly want to stay in the beautiful state they grew up in, but they also worry about what their futures will look like. With these programs, we’re sending a message that we want them to stay here, put down roots and grow fulfilling lives. I also want Maine’s small business owners and entrepreneurs to know we want to help them keep up and compete in the changing, global marketplace. These investments are pro-business, pro-worker and pro-Maine.
Sen. Eloise Vitelli, D-Arrowsic, represents Maine Senate District 24, which includes all of Sagadahoc County.
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